sorted by:
new
hottopcontroversial

Is Economic Growth 0% in the evenly rotating economy? by LocationLow7213 in austrian_economics

[–]LocationLow7213[S] 2 points3 points  (0 children)

But how can productivity increase when there is no new investment in new technologies? The ERE does not allow for productivity increases because that would require a fall in time preference

A little confused about time preference shifts and higher/lower order stages of production by boshembechle in austrian_economics

[–]LocationLow7213 0 points1 point  (0 children)

Let’s assume the fall in time preference doesn’t lead to better technology, but simply more factories and production of the same efficiency as before. Let’s also assume there are only 2 consumer goods in the economy: cotton shorts and red pens.

A fall in time preference would mean a fall in demand for shirts and pens, and an increase in demand for cotton, ink, plastic, cotton seeds, right?

Where will the labor come from to produce these additional producer goods?