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by friedman23 1338 days ago
The labor is a small fixed cost. Depending on what is done with the labor the leverage is potentially infinite (eg. many internet business that earn a million or more per year for every employee they have hired).

Growth can happen by getting the same labor to do something more valuable (maybe building houses instead of chairs?)

1 comments

Labour is people, which need food and water.
I don't see the point of your statement. Economic growth can happen even if the population remains constant (or even shrinks but that would be a headwind to overall economic growth and at that point it might be more instructive to look at gdp per capita).