

Economic growth explained - a5seo
http://www.stanford.edu/~promer/EconomicGrowth.pdf

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a5seo
tl;dr is economic growth springs from innovation.

"Economic growth occurs whenever people take resources and rearrange them in
ways that are more valuable. A useful metaphor for production in an economy
comes from the kitchen. To create valuable final products, we mix inexpensive
ingredients together according to a recipe. The cooking one can do is limited
by the supply of ingredients, and most cooking in the economy produces
undesirable side effects. If economic growth could be achieved only by doing
more and more of the same kind of cooking, we would eventually run out of raw
materials and suffer from unacceptable levels of pollution and nuisance. Human
history teaches us, however, that economic growth springs from better recipes,
not just from more cooking. New recipes generally produce fewer unpleasant
side effects and generate more economic value per unit of raw material."

