I've always been curious, why has GDP experienced exponential growth over the past 200 years?

Will the economy continue to grow exponentially in the next 200 years? What is the fundamental reason behind the exponential growth of the economy?

In Li Lu's book "Civilization, Modernization, Value Investing, and China," he provides a very insightful underlying analysis. He believes that the root cause of wealth creation lies in the combination of modern technology and free market economy.

The free market, through price signals, can quickly allocate resources such as capital and talent to the most promising innovative fields. The crypto industry five years ago and AI in the past two or three years have all rapidly developed through market price mechanisms, attracting talent and achieving swift growth in a short period.

At the same time, technological development also allows human knowledge to accumulate in a compound interest manner, where 1+1>4, thereby creating more shared knowledge.

AI has already repaired roads, bicycles and motorcycles are gradually running, but there are still no high-speed trains or small cars🚗. In the coming decades, development might rely on AI?🤔