Grand canyon vacations for Do resources limit economic growth? The classical economists generally thought of land as a fundamentally limiting factor of production. David RICARDO suggested that the higher-quality (and lower-cost) deposits of exhaustible resources would be exploited first, just as the more fertile agricultural land is cultivated first. Thomas MALTHUS thought that food output was limited to an arithmetic rate of increase whereas the population tended to grow geometrically, which would ultimately lead to declining standards of living. Neoclassical economic thinking went beyond the limitations of this worldview in two respects: First, it recognized the role of capital and technology in deepening scarcer factors of production. LAND, which responded to investment, no longer had any unique significance, and investment in human capital (and in automation) allowed for larger outputs at lower labor inputs. Second, it acknowledged the possibilities of resource discovery and resource substitution as a function of the incentives created by the price system. Capital thus came to be regarded as the only factor truly limiting growth. Grand canyon vacations 2016.