Value Investing World

Tuesday, December 20, 2011

Invention Is the Mother of Economic Growth - By Nathan Myhrvold

Found via The Big Picture.

One reason “dismal science” aptly describes economics is that it so often winds up in a zero-sum trade-off of diminishing returns. That gets depressing when the global economy is in a sorry state, as it is now.


Most economists gloomily advise us to just tough it out. No magical solution can save us.

I submit that the situation is not as bleak as it seems. Yes, Virginia, there is a magical engine for economic growth. It is invention -- the process by which the human mind creates new ideas with practical consequences. Invention is magical because the magnitude of the output can exceed by almost infinite measure the magnitude of the inputs. A single great idea can generate enormous transformations, economic and otherwise.

Posted by Joe Koster at 12/20/2011
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Value Investing World is a blog dedicated to promoting the multidisciplinary approach to investing and development of – as Charlie Munger describes it – a latticework of mental models. Although largely focused on linking to investing and economic material it deems of interest, it will also post and link to material from other disciplines that it thinks worth reading or watching, and will occasionally post investment ideas that it thinks are worthy of either investment or further investigation by those with a value investing philosophy.

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