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Howes’ framing prompts me to bring up some questions I was dumbfounded to pose in four years of econ classes: How do beliefs about the future affect long-term economic growth? I’ve come to the view that creativity and innovative capacity aren’t a fixed stock, coiled and waiting to be released by policy.
Now, I know that a country will not do well if it has poor infrastructure, interest rate management, tax and regulation levels, and a whole host of other issues.
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If we pull out and dust off our econ textbooks, we’ll read that growth is a function of higher investments, spending, trade, productivity, and so on.
They can be broken down into ever more abstract categories, but technical enough that we can measure them to two decimal points and above. And most of all: Why do we treat innovative capacity as some kind of fixed stock, constant across time and between countries, ready to be activated as soon as policymakers have finally gotten around to legislating the right conditions in place?
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