One thing is common in all of the underlining growth theories it is the unparalleled analysis on technology.This axiom cuts through all growth models excluding classical growth theory that exudes gross disrespect to technology disdaining the quality and quantity of technical progress in economic growth.The neoclassical laid emphasis on factors such as labor, technology and capital formulating a cluster as steady economic forces to generate economic growth.The Slow Swan growth model the most prominent of the neoclassical growth school.That labour and capital leads to total output and with addition of technology augments labour productivity growing more general output through increased efficiency of labour.Therefore neoclassical growth model by production function is utilised to measure economic equilibrium and economic growth respectively with the following form:
Y=AF(K,L)
Where Y =income or The GDP
K--Capital
L--number of unskilled labour in the economy
A--Determining level of technology
Given the dynamic relationship between labor and technology production is then later refocused or restated as Y= F(K,AL) to mean that technology is labour augmentation or workforce augmenting and also workers productivity depends on the rate of technology use and deployment.
Unlike Neoclassical growth model as if with prophetic eyesight
The growth model of Neoclassical marsolism assumes the entire production function is technology driven both by input and output and input and output multiplier respectively.That economic growth and economic equilibrium is robotic driven as depicted in following form:
Y= R0(R1,R2,R3)
Where Y = GDP
R1--electronic capital(crypto)
R2--unskilled robotic labor in the economy
R3--skilled robot in the economy
The dynamic relationship between labor and technology by production function is restated as Y = R0= (R1,R3).The production function of this growth model would continue to shift until R2 is eliminated from the aggregate production function of economic growth and economic equilibrium respectfully.
The most radical macroeconomic theory of growth the neoclassical marsolism banish human labor from the pantheon of aggregate production output,infact in the final banished unskilled robotic labor for the most advanced labor marking the extinction of human labor.
Assumption of both neoclassical growth models in conventional neoclassical and neoclassical marsolism.
1.Both assume capital is subject to diminishing returns in a closed economy but still in a closed economy neoclassical marsolism assumes even electronic capital keeps growing in the face of extreme volatility.
2.Infact in a steady state economy impact on total outputs is never the same as robotic outputs never stop growing.
This is terrifying and mind blowing how much more in a free economy.
3.Both experience steady state per capital income increase and long term growth is near infinitely determined singlehandedly by technology growth .
Although we do not envisage cultural hazards in a closed and unclosed robotic economy.With the wonderful world of AI and robotic engineering, technology is the factor of production including techpreneurship and virtual land is infinite.
Neoclassical marsolism foresee inequality of wealth and mass poverty eradication and that the problems identified by dependency theory would be finally resolved by neomarsolism spreading wealth generated by humanoids and technology across the world uncensored.It also fullfil the prophecy of structural change theory and resolved Malthusian theory of population growth to some extent doubling world population creating more problems as we now robotic humans on planet earth.It enhanced the mutual benefits of human capital theory and also retire the theory partially though human oversight functions still badly needed to regulate use of the robots and mutual welfare between both beneficiaries humanoids and humans respectively.
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