“The last chapter modeled technological progress as an increase in the number of types of products, N. In this chapter, we allow for improvements in the quality or productivity of each type. This approach has come to be known as the Schumpeterian approach to endogenous growth. We can think of increases in N as basic innovations that amount to dramatically new kinds of goods or methods of production. In contrast, increases in the quality of the existing products involve a continuing series of improvements and refinements of goods and techniques.”

— Robert Barro

Robert J. Barro, Xavier Sala-i-Martin, Economic growth 2nd ed. (2004), Ch. 7 : Technological Change: Schumpeterian Models of Quality Ladders

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Robert Barro 18

American classical macroeconomist 1944

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“The last chapter modeled technological progress as an increase in the number of types of products, N. In this chapter, we allow for improvements in the quality or productivity of each type. This approach has come to be known as the Schumpeterian approach to endogenous growth. We can think of increases in N as basic innovations that amount to dramatically new kinds of goods or methods of production. In contrast, increases in the quality of the existing products involve a continuing series of improvements and refinements of goods and techniques.”

Xavier Sala-i-Martin (1962) Catalan economist

Robert J. Barro, Xavier Sala-i-Martin, Economic growth 2nd ed. (2004), Ch. 7 : Technological Change: Schumpeterian Models of Quality Ladders

“Only in more production and in new production can the American standard of living be increased and the economy be sound.”

Alfred P. Sloan (1875–1966) American businessman

Alfred P. Sloan, quoted in: Forbes, Forbes Incorporated, (1959), p. 54

“I am confident that the enactment of the right bill next year will in due course increase our gross national product by several times the amount of taxes actually cut. Profit margins will be improved and both the incentive to invest and the supply of internal funds for investment will be increased. There will be new interest in taking risks, in increasing productivity, in creating new jobs and new products for long-term economic growth. Other national problems, moreover, will be aided by full employment. It will encourage the location of new plants in areas of labor surplus and provide new jobs for workers that we are retraining and facilitate the adjustment which will be necessary under our new trade expansion bill and reduce a number of government expenditures.”

John F. Kennedy (1917–1963) 35th president of the United States of America

Source: 1962, Address and Question and Answer Period at the Economic Club of New York

“Education is perceived as a crucial instrument for increasing productivity and income, skills, competency of human resources, and sustainable growth. In the end, education helps reduce social problems, and improves quality of life so that people can live equally with others in society.”

Sukavich Rangsitpol (1935) Thai politician

Education helps reduce social problems and improves quality of life

“The annual produce of the land and labour of any nation can be increased in its value by no other means, but by increasing either the number of its productive labourers, or the productive powers of those labourers who had before been employed.”

Adam Smith (1723–1790) Scottish moral philosopher and political economist

Source: (1776), Book II, Chapter III, p. 377.

“Quality comes not from inspection, but from improvement of the production process.”

W. Edwards Deming (1900–1993) American professor, author, and consultant

Source: Out Of The Crisis (1982), p. 29

“Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs.”

W. Edwards Deming (1900–1993) American professor, author, and consultant

Source: Out Of The Crisis (1982), p. 23 (Point 5 from the "Condensation of the 14 Points for Management" presented in Chapter 2)

“Competition among capitalists requires that they constantly reduce the costs of production, by cutting wages or some other means, while increasing output through technological change and greater efficiency. The process, then, involves three intertwined aspects:
(1) capitalists control the means of production,
(2) laborers must sell their labor to survive because they lack access to the means of production, and
(3) there must be constant changes to increase production and cut costs.”

Ted C. Lewellen (1940–2006) American writer

Political Anthropology: An Introduction (2003), p. 213

“Real economic growth emanates from increased productivity, which tends to hold prices down.”

Peter D. Schiff (1963) American entrepreneur, economist and author

Quotes from Crash Proof (2006)

“Specialization, as has been noted, is the confining of human activity to a limited field. In industrial work this means the limitation of an enterprise to a portion of the field and to the production of a limited line of products. But even when the line of products is limited, there are usually many types that are possible in that line and an infinite number of sizes of any one type. Thus suppose a manufacturer specializes in the manufacture of men's shoes. Here there is no limit to the types that may be produced and no limit to the number of sizes of any type since no two feet are exactly alike. Again a manufacturer may specialize on the production of motors between the sizes, say, of one-half horse-power and twenty horse-power. Here again many types are possible and an infinite number of sizes for each type. But it has been shown that one of the essentials of cheap production is quantity, and for a given total output the greatest number of each element entering into the product is secured when the numbers of types and sizes are a minimum.”

Dexter S. Kimball (1865–1952) American engineer

Source: Principles of industrial organization, 1913, p. 41-42

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