Golden Rule of Accumulation

The Golden Rule of Accumulation is an economic principle that suggests countries should save and invest enough of their output to ensure steady growth without depleting their resources. Specifically, it states that the optimal amount to save is when the marginal benefit of investment equals the marginal cost, leading to the highest sustainable capital per worker. This balance ensures that resources are used efficiently to promote long-term economic growth, improving living standards without causing excessive consumption or over-investment that could hinder future progress.