Is it possible for an economy to continue growing forever solely by accumulating more capital?

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2026-03-17 08:26

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No, an economy cannot sustain perpetual growth solely through capital accumulation due to diminishing returns. As more capital is added, the incremental gains in output decrease over time. Additionally, factors such as resource constraints, technological innovation, and labor dynamics play crucial roles in driving long-term economic growth. Ultimately, a balanced approach that includes improvements in productivity, technology, and human capital is essential for sustainable growth.

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