Posted here Monday, December 08, 2003 at 3:51:08 PM 
The naivety of economists. I found this scanning some old papers on the net, by sir Harrod
Harrod introduced the concepts of warranted growth, natural growth, and actual growth. The warranted growth rate is the growth rate at which all saving is absorbed into investment. If, for example, people save 10 percent of their income, and the economy's ratio of capital to output is 4, the economy's warranted growth rate is 2.5 percent (10 divided by 4). This is the growth rate at which the ratio of capital to output would stay constant at 4.
The natural growth rate is the rate required to maintain full employment. If the labor force grows at 2 percent per year, then to maintain full employment, the economy's annual growth rate must be 2 percent.
with the best of intent, but the commitment to maintaining employment of course was given up when inconvenient, so that now we can have that the economy is doing well but the people are doing poorly.
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