Productivity of savings in capital: PDP
1. Technical innovations that have the effect of raising yields are a cause of the increase in the PDP.
This is so well known and proven that it is not worth insisting on here. Among the techniques that increase yields are those of marketing and administration, alongside those of manufacturing.
2. Quality improvements contribute to the increase in the PDP.
Competition between suppliers on a commercial basis concerns the relationship between quality and price. Quality improvements, more than proportional to the price differentials of the offers compared, raise the PDP.
3. Diminishing rate of returns do not ipso facto slow down the increase in Productivity of savings in capital.
Diminishing rate of returns increase investments and costs. Through diversification of production and markets, but often through job destruction, quality improvements contribute to the increase in PDP.
4. Competition doesn't just drive higher yields.
It stimulates diversification and the opening of outlets as well. By means of them, new contributions to the slowing down or acceleration of the general increase in productivity are provided.
5. The desire to increase the purchasing power of wages contributes to the increase in the PDP.
The causality that the equation accounts for is known to the populations that have lived, and continue to live, the overtaking by low wages of their levels so miserable that life expectancy is greatly affected. Through this experience, these populations are disposed to the myriad of entrepreneurial initiatives that contribute to the increase in PDP.
6. The increase in PDP is sustainable over a very long period.
The multiple causes of PDP increases mean that, in countries with the highest per capita income, a sustained trend towards stability or decline in PDP is unlikely.
7. From one country to another, percentages of increase in the PDP can temporarily go more than double.
In an open economy, it cannot be expected that the PDP of a country where per capita income is currently significantly higher than in another country can ordinarily rise as much as in that other country in the take-off phase.
8. Free trade in international trade establishes and maintains the upward equalization trend of domestic PDPs.
This trend does not imply the standardization of all morals. On the contrary, too much standardization reduces the quality and variety of what human genius produces.