Robert Solow Thesis

Born and raised in Brooklyn, New York Robert M. Solow came into the world on August twenty third, nineteen twenty-four. Although Solow and his family weren’t the most fortunate and had to earn a living after they finished high school, his sisters and cousins were the first generation of the family to go off and attend college including Robert M. Solow himself. Robert Solow skipped a few grades in elementary, graduated at the age of sixteen and got a scholarship to Harvard University which he had gladly took the offer from in September nineteen forty. Solow felt that he could contribute more to his country and family, so he left Harvard to be in the United States Army just two years after being at Harvard University.
August nineteen forty-five
The last letter of the model are ideas represented by the letter A, the letter A represents all of our knowledge about how to incorporate capital and labor work to produce valuable output. Everything from how to transport things without carrying it on your back, to how to keep diseases from spreading, and how to add up one thousand numbers in a factor of a second. The letter A needs more ideas because ideas are what can put more money in people’s pockets and more output from the same inputs of capital and labor. We could also think about human capital, physical capital and ideas being used together to produce output, after all that is the idea of our production
Solow explains to us why he thinks inequality is a critical issue for economic growth and why he believes policy makers should care about equitable growth. Incoming inequality effects both the production and the supply side of the economy. Since one side puts an end to economic life and lots of human resources, people at the bottom of the economic industry don’t get all the resources that higher class economic industry would get. Solow believes it would be a shame because of all the talent underclass people have doesn’t get seen as much as higher class people. On the other hand, it is also true that building up and increasing inequality tends to hollow out the tribute institution which would case us to lose the solid middle-class jobs and income we need to keep things going around. Solow also thinks policy makers should care about the kind of society they are helping create because it isn’t something that should be messed around with especially since it would mess up future generations.
Solow noticed that most of the economic growth cannot be accounted for by increases in capital and labor. He attributed this unheard portion which is now called the “Solow residual” to the technological innovation. “The Solow residual is a number describing empirical productivity growth in an economy from year to year and decade to decade. Robert Solow defined rising productivity as rising output with constant capital and labor input. It is a "residual" because it is the part of growth