Law of Accelerating Cost
Executive Summary: America’s economic growth has been in decline for decades and some feel nothing can be done. The “Law of Accelerating Cost” (LAC) postulates that to maintain economic growth as a constant percent of GDP, exponentially more R&D resources over time are required. We have not been making these investments since the 1970s. These resources can be effectively obtained in three ways:
- Increased federal and corporate investments.
- Better use of existing funds by using value-creation best practices.
- Movement away from areas of low economic return to focus on areas of major impact to the economy.
An important part of the solution that addresses our economic decline lies in satisfying these factors. The largest and most efficient solution is achieved when these factors are combined. (more…)