Can Sophisticated Technology Prevent Severe Economic Slump?

Source: Cobden Centre
by Dr. Frank Shostak

“According to the 2018 Nobel Prize winner in economics, Paul Romer, the technical knowledge that spills over into the creation of new products is the key to sustained economic growth. If this is the case why do we still experience wild fluctuations in economic activity known as boom-bust cycles? After all our technical knowledge has increased enormously in relation to past periods. Most economic commentators are likely to agree that in relation to the period prior to the 1930’s Great Depression, the present world is many times more sophisticated in terms of advanced technological knowledge in particular with respect to computer technology. It is then tempting to suggest that with the present advanced technology we are in a position to generate enough real wealth to prevent economic slumps.” (02/08/24)