Economist Explains Why Efficiency Gains May Not Boost GDP
Afinetheorem · x · 2026-08-30
Responding to the GDP paradox, the reply explains that if demand is inelastic (e.g., no need for more bricks after a certain point) and labor lacks mobility across tasks, a 3x speed increase in brick stacking won't change GDP. The effect depends on demand elasticity and labor elasticity.
Related event: The AI Productivity Paradox: Why 3x Output May Not Grow GDP(3 posts)→
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