The Productivity Bull Case for Economic Growth and Technological Innovation
Paul Krugman's assertion that "productivity isn't everything, but in the long run it is almost everything" underscores the critical role of technological innovation in economic growth. Total factor productivity (TFP), the measure of technological contribution to output efficiency, serves as the backbone of sustained prosperity. A mere 0.5% annual increase in TFP could stabilize US debt-to-GDP ratios, potentially reducing government debt by $2 trillion over a decade.
The National Bureau of Economic Research highlights how incremental gains in productivity compound into transformative fiscal outcomes. Over 30 years, such growth could slash debt ratios by 42 percentage points—a testament to technology's deflationary power. Cryptocurrencies like BTC and ETH embody this principle, leveraging blockchain to redefine financial productivity.
