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[–] CanIHazPhD ago
Easy, a large increase in production (i.e. picking the low hanging fruit) leads to deflation that does not reduce aggregate demand and disincentives taking loans (because the influx of capital lets you pay directly).
Now go read the rest.
[–] ForTheUltimate ago (edited ago)
You haven't finished. In fact, you've barely started if at all. Explain why one of those economies cannot achieve a large increase in production. Furthermore, how large does it have to be? I bet there is no magic treshold and it only has to be larger than the increase in the money supply. Literally no reason any economy would be capable of this. Also, low hanging fruit my ass, tell that to the africans. In fact it was likely more difficult than today's economy. I do not adopt your term ''low hanging fruit'' without an explanation or evidence, hwoever this is besides the point.
I have such a low opinion of it I certainly won't search it, but I'll take a look if you find it.
[–] CanIHazPhD ago
Diminishing returns is the explanation. It happens in all industries. I already gave you some good examples on why it's easier to exploit resources at first. I recommend you think on those again. This also explains why modern economies can't make this growths in production. Just think why the gold rush started and stopped and even you should realize it. The threshold is not a magic number, but it's easy to see, the same threshold that separates a growing economy from a booming one.
The africans did got most if not all their low hanging fruit, it happened during colonialism.
It's funny you have a low opinion of well formed arguments that have countered every single one of your points. but that's not here nor there.
Now, for a change of pace let's see you explain why, barring a minuscule number of exceptions (which can be and have been easily explained) sustained deflation has lead to recession in all modern economies. I'll await your answer.