New Economy Lingo

Need a crutch on the "new" economy? Here is one place you might seek some help. Click here to go to Wired Magazine's Encyclopedia of the New Economy.

For example, what is the "new" economic theory of growth that is shaping national, state, and local economic development policies and strategies on a daily basis. Here is what the Wired Encyclopedia has to say: "Knowledge creates economic growth, which spurs knowledge, which begets growth.Traditional economists view growth as a product of people and objects: An increasing population boosts growth by providing more labor; an expanding machinery base makes labor more efficient. New growth theory, built on work done in the 1950s by Nobel laureate Robert Solow and currently championed by Stanford University's Paul Romer, points out that knowledge - particularly of technology - is crucial to the process. Though it might seem obvious, this insight turns a generation of economic theory on its head."