Tool Leverage Effect

When a new tool dramatically reduces the marginal cost of performing a task, total demand grows non-linearly, creating more jobs and economic value rather than destroying them. The principle: value output gains exceed labor displacement.

Read the daily articles behind this idea on the Chinese edition.

Related principles

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  Extraction Rights Institutionalization
• → Links
  Concurrent Expansion of Growth and Profitability
• ↺ Counters
  Organizational Coordination Cost Paradox
• ↺ Counters
  The Invisible Winner in Attention Economy
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  Industrialization of Experience Economy
• ↺ Counters
  Supply Shock Price Transmission Mechanism