Somewhere along the line, whether it was the Mexican farmers who 6,000 years ago began genetically engineering the precursors to corn, or Bill Hewlett and David Packard, who transformed semiconductors into calculators, business machines, and laser printers, it is innovation that has created the products that enable us to live like no other species on earth. Read More →
Monthly Archives: January 2012
Innovation and Wealth (II)
Innovation and Wealth (I)
Steve Jobs (Apple) didn’t invent the semiconductor, Bill Gates (Microsoft) didn’t invent the computer operating system, Oprah Winfrey (The Oprah Show) didn’t invent the talk show, and Mark Zuckerman (Facebook) did not invent social networking. Read More →
Innovation is Essential
On one point, all economists agree. Innovation is a fundamental, indeed necessary, element of economic growth. And note that we say “innovation†rather than “invention.†The latter is the creation of a new idea— but plenty of new ideas go nowhere. Innovation is the transformation of a new idea into successful commercial, scientific, or artistic application. Although innovation may incorporate invention, it need not do so. Read More →
Incentives are Important (II)
Such a tax change also causes a sharp reduction in the number of people who work at all, and causes many others to join the underground economy (see Chapter 2 ), or to devote their time to tax evasion. Overall, then, higher tax rates cause lower output and higher unemployment. Wealth is reduced now and in the future. Read More →
Incentives are Important (I)
We have seen in the previous chapters that secure property rights and the rule of law are crucial in fostering economic growth. These institutions help ensure that individuals are secure in the knowledge that they will get to keep the fruits of their labor. Read More →
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