Our new economic approach is rooted in ideas which stress the importance of macro-economics, post neo-classical endogenous growth theory and the symbiotic relationships between growth and investment, and people and infrastructure.
The standard growth theory tells us that economic growth in per capita basis comes from mainly two sources: capital deepening and total factor productivity growth, or TFP growth.
My definition of economic development is economic growth.
Growth theory did not begin with my articles of 1956 and 1957, and it certainly did not end there. Maybe it began with 'The Wealth of Nations'; and probably even Adam Smith had predecessors.
We know that investment causes growth. But it is also true that growth causes investment.
The concept of disruption is about competitive response; it is not a theory of growth. It's adjacent to growth. But it's not about growth.
It is a myth that higher taxes lead to less demand and slower growth. In the first three decades after World War II, US top tax rates on the wealthy were never below 70 percent.
Production functions involving only land, labor and capital... never work and never explain economic development.
For decades, my research was driven by outstanding problems in macroeconomics: mainly growth theory and employment theory.
