Quadratic Prosperity Growth Instead of Stagnation
EconomicsQuadraticIncome V20, 2016
36 Pages Posted: 27 Apr 2016 Last revised: 28 Apr 2016
Date Written: April 21, 2016
Today’s world economy is threatened by stagnation. The conventional fiscal instruments to counter this are exhausted. High national debts and sustained low interest rates will no longer suffice to encourage economic growth. With this, and a growing world population we face the following threats: • increased unemployment, • the collapse of the many overindepted national economies, • an increasing gap between rich and poor within nations and between nations.
This article presents a new superstructure for economic theories. It shows how market economies can avoid economic stagnation.
In 1936 economist Friedrich Hayek in his presidential address to the London Economic Club held a speech titled “Economics and Knowledge”. In his address he introduced the term “bit of knowledge” and urged his guild to search for said “bit of knowledge” as otherwise the science of economics could not be developed further.
The objective of this article is to present the quantification of the bit of knowledge.
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