I’m a bit confused about the 1/0.7 number mentioned in the GDP growth section. My possibly flawed understanding is that is based on labor automation so effectively existing labor is freed up to do something else but wouldn’t that existing labor have diminishing marginal effects on GDP (as alluded to by the 0.6 exponent on C later on)? Even assuming zero reskilling costs etc.
I’m a bit confused about the 1/0.7 number mentioned in the GDP growth section. My possibly flawed understanding is that is based on labor automation so effectively existing labor is freed up to do something else but wouldn’t that existing labor have diminishing marginal effects on GDP (as alluded to by the 0.6 exponent on C later on)? Even assuming zero reskilling costs etc.