Modern Western economists assume – most economic commentary is based upon assumptions like these – that economic growth, or improving living standards to you and me, will continue indefinitely.

There are many problems with the way in which economic growth is calculated and I shall not discuss these here.

However our highly paid and well educated economists, many of whom have impressive credentials from our top universities, seem unaware of what it takes for an economy to grow. That is clear from their focus on the manipulation of the amount of or distribution of money as the solution to economic growth problems.

Economic growth requires three conditions. Firstly it requires the ability of producers to produce more of what they produce. In most cases this is achievable in an advanced industrialised economy. The large manufacturers merely need to build another factory and hire more staff and they will increase production.

Read the full article Economic growth – the panacea