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Originally Posted by aceventura3
It is not magic. I have tried. Am I to understand that your concept of wealth creation is that it is always is rooted in a demand for a good or service and then someone comes along with a solution?
In the middle ages before the printing press, there was no mass demand for printed reading material, it was rare to come across people who could even read. Then considering the materials initially printed, there was no demand for that either
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I'm not talking specifically about demand or whether a market exists or is yet to be created. Wealth creation is dependent on a number of factors, including supply, demand, production, and a market for exchange. You have been implying that wealth comes literally from nowhere, brought forth—somehow—and solely—by an idea. You have so far failed to take into account the very important and well-known factors that actually do it, and it doesn't come from nothing. I'm not about to quote Adam Smith or anyone else to explain something so fundamental to the understanding of economics.
I understand innovation has a role, but you are adamant—for one reason or another—in your position that it is the panacea for an economic downturn, or worse, an economic crisis. It's not.
I've already pointed out how much of economic recovery is dependent on spending as a result of pent-up demand (existing markets). Innovation has a much larger role in expansion. It takes advantage of scaling after it leaves the early-adopter stage. The reason why I asked you about wealth creation during a recession is because it's a hell of a lot harder leaving the early-adopter stage during a recession than it is during an economic expansion. Innovation is not going to be a huge factor in the recovery; auto sales, home sales, retail sales, etc., will be.
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Where does an idea come from? What creates it? I don't know, do you?
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Ideas aren't created, they're stolen. What is required to turn an idea into a mass-market solution? Do you know that much?
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How do you want me to proceed. Examples in history, statistics, what? Will it make a difference at this point? I am not going to do a search on statistics tonight, but you can consider the productivity gains in farming and how it has lead to real economic growth in every modern nation on this planet. And, then imagine if some third world nations had something as simple as irrigation systems, how much more productive they would be and the impact that would have on living standards. I know a person in the Peace Corp, serving in a third world nation today - getting fresh water for consumption and planting consumes an unbelievable to me amount of human resources in the poverty stricken country he serves in.
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I was more or less wondering about your perspective on the nature of production and its role in an economy. I was cautious about this because of your odd view on other things such as wealth and the role of innovation in an economy.