There is an awful lot of nonsense floating about the interwebs and even “expert” debates when it comes to economic growth, so let me put it straight for those interested:
The economies that grow fastest are precisely the ones with the most empty space left to grow into.
Think of an economy as a beachball: those already at or near full size take tons of effort to blow any more air into.
In comparison, entirely empty ones can be filled up reasonably with relative ease.
Ergo the growth of third world countries by 30% a year (starting basically from the iron age), whereas developed countries struggle to clock in 2% a year.
What makes the ball bigger and makes growth possible even in developed countries? Technology. The size of the ball is the potential product of that particular given society.
The developed world is bursting at the seams and every additional 0.1% of government-spending induced growth comes at great opportunity cost that may have well cost us 10% in potential product.
The only thing that has ever really helped improve the human condition is technology. All else is stalinism.