Final answer:
Mr. Scalabre may believe that productivity is not growing due to diminishing returns on investments. However, technological advancements and innovations can overcome these limits and lead to a new manufacturing revolution, similar to the impact of the Industrial Revolution on the United States' economy. Continuous improvements are key to avoiding the complete applicability of diminishing returns.
Step-by-step explanation:
The question seems to address economic concepts related to productivity and the history of economic development through industrialization. Mr. Scalabre might believe that we are not growing in productivity because of potential diminishing returns on investments in physical and human capital. In economic theory, the concept of diminishing returns suggests that there is a point at which the level of profits or benefits gained is less than the amount of money or energy invested.
To turn these shortcomings into the next big manufacturing revolution, we should focus on innovation, technological advancements, and enhancing efficiencies. New ways to improve productivity growth include investing in new technologies, encouraging entrepreneurship, and adopting innovative manufacturing processes. This can lead to significant changes in how economies produce goods, similar to the impact of the Industrial Revolution on economic growth and income levels in the United States.
Productivity growth may not slow down in high-income economies due to continuous improvements in technology and practices that overcome traditional limits, indicating a situation where diminishing returns might not always apply. Indeed, significant technological breakthroughs and improvements in organizational practices can lead to continuous productivity growth despite significant investments in capital and human resources.