“Much ingenuity with a little money is vastly more profitable and amusing than much money without ingenuity” -Arnold Bennett
We are frequently asked if we have thoughts on how to fix our economy. We certainly do. Today we provide you with a simple, yet very complex answer.
In this View, we discuss the two underlying factors that determine the size of an economy; labor and capital. While these factors predominantly establish the size of an economy, real and sustainable growth is only achieved by the increasingly efficient use of these resources. The economics field refers to the efficiency with which we use our resources as productivity. Today we explore and help you understand the role productivity plays in economic growth. Next, we review the last 50 years to show how these factors affected growth and also their implications for the future. After reading this View we hope you understand the true path to a strong and sustainable economy lies in productivity gains.
As always, we end this View with our investment outlook.
In our most recent View ( http://absolute-im.com/pdfs/Q3_2012.pdf ), we explained how demographics (labor), s