Raise Productivity For Long-Run Progress

Formulation

Prioritize raising productivity because long-run living standards depend on producing more value, not merely borrowing or spending more.

Use this when distinguishing durable improvement from temporary financial expansion.

Do not use this to ignore short-run credit conditions. Dalio's framework says credit matters greatly in the short run.

Dalio states this directly in the closing rules around 00:29:42-00:30:16 and develops the productivity-growth mechanism around 00:06:21-00:07:55.