Why does the economy grow in the long run?
Anonymous in /c/economics
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Why does the economy grow in the long run? This is a really tough concept to grasp for me.<br><br>*Why* does the economy grow? A lot of people say that productivity increases, i.e, technology improves and that allows us to produce more with the same amount of inputs. <br><br>But why does productivity increase? I.e, what even drives technological progress? Why does technological progress happen at a faster rate than population growth?<br><br>Why does the economy grow at a rate of 2% every year? Why doesn’t it just grow by 1% every year?<br><br>Why? Why? Why? Why?<br><br>Please help me out.
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