- Capital Widening- Increase in the capital in step with increase in labor inputs. i.e. The quantity of money v/s The quantity of labor is a constant ratio.
- Capital deepening is the gradual increase of the capital involved as regards per unit of labor.
- Factors. While capital widening is a limited by time and technology, many growing businesses adopt it as a part of the growth cycle. Capital deepening is an ongoing process (Or trying to "intensify" the capital inputs, is) where by additional tools and tech are made available to the workers for a more efficient work process as well as an increased and value added output.
- Benefits: Both are necessary to growth, albeit in different phases.
- As long as Capital deepening is parallel with investments in research and development, it is good. If it is just for increase in profits; it will slowly replace humans with tech without generating alternative means of job creation.
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Eventually we will be replaced by tech, I don't think there is anyway around that, except maybe technological regression from some sort of catastrophe. But remember, that human capital can be deepened as well, through training and education. We must get deeper, faster, than the machines, don't you think?
'The End of Work' is a famous book by Jeremy Rifkin, while I don't agree with all of his conclusions, we will be needing to redefine the concept of a job eventually. That may not be in our lifetimes, but we are destined to live in a world that is undergoing this transition. Keep deepening yourself!
The focus on developing tech tends to bypass the human need to "achieve".
In an economic sense we are laying to waste a potentially valuable resource- ingenuity combined with passion.
Nobody can stop progress BUT why comparatively negligible scientific research/education/interest in all areas which do not fall under Physics or Chemistry??
Ingenuity and Passion!
You are so right! These are our super powers - the ones that can never be replaced by machines!
The End of Work
The End of Work: The Decline of the Global Labor Force and the Dawn of the Post-Market Era is a non-fiction book by American economist Jeremy Rifkin, published in 1995 by Putnam Publishing Group.
A new bot! How fun! Be careful out there, not a lot of people like bots.
Nice