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Efficiency fuels growth only by creating more output with the equivalent input. GDP doesn’t go up with “less input” it goes up with “more output”


Of course, although I'm assuming you meant that as a rebuttal? Keep in mind that output does not always need to be physical. In fact, the history of capitalism shows that growth is coupled with more people doing less physical work and that countries with greater wealth and resources (e.g. the ability to make more stuff more efficiently) will move towards a service oriented economy.


Yes, I agree that the more advanced an economy gets the less coupled GDP is to physical labor. But efficiency is not a 1:1 relationship with GDP unless the work input is equal. Meaning, just because there is an increase in efficiency does not guarantee there is an increase in productivity so efficiency shouldn’t be used as a perfect corollary to GDP, just one aspect that helps drive it.

It’s like saying “my per hour pay rate went up” and assuming your annual take has also increased. That’s only true if your total hours didn’t drop enough to erode those rate gains.

To your point, GDP and efficiency are both increasing but hours per worker are generally decreasing.




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