Reply To: Nurkse's Balanced Growth Theory

#16964
jmherbener
Participant

As I understand it, critical minimum effort theory is a model that has built into to its operation the result that population growth will outweigh capital accumulation per capita unless a certain threshold is met, which underdeveloped countries cannot normally meet.

I’m afraid that CMET, like Malthus’s theory, will prove inaccurate in predicting real economies. There are no constants in the relationships among variables in human action.