Economic Transformations Quotes

“Can growth be sustained into the indefinite future? We first briefly address the general worry that since the world’s resources are finite, growth must be unsustainable in the very long term. If all resources were non-renewable, all economic activity, whether growing or static in magnitude, might eventually become unsustainable. But even this is not quite certain since a finite stock of non-renewable resources can last infinitely if the usage declines asymptotically over time—a not impossible achievement in a technologically dynamic society with a constant population. Fortunately, many resources are not of the non-renewable type. Furthermore, the law of conservation of mass energy shows that one does not destroy mass energy but merely transforms it into other forms. Also, the world is not a closed system, receiving a continuous flow of new energy from the sun. So there seems little substance in the general worry that over many centuries all forms of growth are unsustainable because of ultimate resource limitations.”
― Richard G. Lipsey, Economic Transformations: General Purpose Technologies and Long Term Economic Growth

“This survey of transforming [general-purpose technologies] illustrates why we argue that one cannot explain the long-run growth record of the West, or the world, without understanding technology. Further, one cannot properly understand technology when it is formulated merely as a scalar in a production function. Instead, one must comprehend each technology’s characteristics and channels of structural impacts. Along with the masses of incremental changes in technology that are important sources of economic growth from year to year, every once in a while comes a new GPT that causes major structural adjustments and changes in our way of life, as well as rejuvenating the growth process by presenting a whole new research programme for finding improvements in, and applications for, the new GPT.”
― Richard G. Lipsey, Economic Transformations: General Purpose Technologies and Long Term Economic Growth