People are reasonably good at estimating how things add up, but for compounding, which involved repeated multiplication, we fail to appreciate how quickly things grow.
Paul RomerRead
An economy can survive with 10% of the population insolation. It can't survive when 50% of the population is in isolation.
Interpretation
What this quote means
High levels of isolation in a population can lead to economic collapse.
Paul Romer's quote emphasizes the importance of social interaction and connectivity for a thriving economy. While a small percentage of the population can be isolated without severe consequences, widespread isolation—when it affects a significant portion of the population—can severely disrupt economic stability and growth.
Themes
EconomyIsolationPopulationConnectivitySocial Interaction
In practice
Example use cases
During a speech about the impact of social distancing on the economy, one could use this quote to highlight the risks of isolation.
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All quotes →When somebody discovers something like the quadratic formula or the Pythagorean theorem, the convention in science is that he can't control that idea. He has to give it away. He publishes it. What's rewarded in science is dissemination of ideas.
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One of the most powerful insights in economics is this idea of a division of labor. You do the thing you're good at. Other people do something else that they're good at. The net effect is better for everybody.
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Human material existence is limited by ideas, not stuff, people don't need copper wires they need ways to communicate, oil was a contaminant, then it became a fuel
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It is the job of government to prevent a tragedy of the commons. That includes the commons of shared values and norms on which democracy depends.
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In the developing world, most people don't yet live in big well-run cities. Given the chance to move to one, hundreds of millions of people would go there to get a job, get an education for their children, and live in a place that is clean, safe, and healthy.
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