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

Abstract

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.

Suggested Citation

Kreft, Hans-Diedrich, Quadratic Prosperity Growth Instead of Stagnation (April 21, 2016). EconomicsQuadraticIncome V20, 2016 . Available at SSRN: https://ssrn.com/abstract=2768305

Hans-Diedrich Kreft (Contact Author)

Shuccle AG ( email )

Ecksweg 4
Dassendorf, DE 21521
Germany
+49 4104 694796 (Phone)

Register to save articles to
your library

Register

Paper statistics

Downloads
54
rank
366,893
Abstract Views
954
PlumX Metrics