New research reveals how economies can achieve perpetual growth without limits.
The article discusses how economies can grow by either increasing or reducing the importance of certain factors of production. The researchers focus on the idea of eliminating non-reproducible factors to achieve growth. They use a model with capital and labor as factors, where spending on research and development can change the balance between them. The model shows that with the right saving rate, an economy can achieve perpetual growth. This means that by investing in new technologies, an economy can transition from a primitive state to a developed one without needing monopoly power or external factors.