[[Economic Theories]] # The Growth Spiral Author: [[Hans Christoph Binswanger]] The book describes the author's theoretical approach to the modern economy, which includes a focus on the role of money, markets and the ability to increase utilization of the world's natural resources using human creativity. The invention of paper money and the banking system allows the creation of capital to fund entrepreneurs in the competitive process. Capital acts as a fund of purchasing power in order for the entrepreneur to compete in the market and turn that capital into more money. One of the most important tactics of competition is technological innovation. Innovation allows us to access more of the world's natural resources. Innovation relies on human creativity, which has been lacking in traditional economic theories. Getting to the end of the book I became frustrated that the contents didn't coalesce into a better understanding of the author's ideas. It felt like a collection of pieces of knowledge rather than a holistic understanding. I wasn't sure what the purpose or big idea was, besides the author providing a better description of how the economy work (from money, resources, capitalism and the role of creativity). Part of the issue might be that I already agree with the author on most of what he is saying, so it appears superfluous to me. So for lack of a better one, the main takeaway is that traditional economics has missed many important features of the modern economy such as the proper function of money and creativity through entrepreneurship. These are the two most important aspects of capitalism. The competitive spirit of entrepreneurs and insatiable desires of humans create a growth impetus, meaning that growth is endogenous to the economy (rather than exogenous).