Sunday, August 31, 2014

Can sharing expand the economy?

Interesting observation in an interview with Arjun Sundararajan

"...when a technological change comes along that makes “production” more efficient, it eventually grows the economy because it creates new opportunities.
The mortgage example is exactly that. It’s more likely that I’ll be able to afford a larger space if I can explicitly factor in the revenue stream that I’ll get from renting it out during the ten days that I’m traveling.  And that is expansive for the economy, not recessionary, because I’m probably going to get more space. People are going to use that space when I’m not there, and that generates commercial activity as well".

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