By Karl Spain
There are a lot of theories about what’s wrong with our economy and most of them contradict each other, leaving the public with no clear sense of what to do about our sluggish growth rate.
My theory about what is fundamentally wrong with our growth rate is a little obscure so please, please, bear with me. The key to my theory about what will improve the economy goes like this, the economy produces wealth (the sum of all the work done and product produced) as a function of overall productivity, which is a cumulative factor that can be influenced most easily, and quickly, by innovation.
Innovation doesn’t just improve the overall marginal productivity of the people using improved tools, the actual products produced by innovative processes, which lower their costs, have the same net effect. Conversely, when products get more expensive from a productivity point (productivity here…
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