An Optimistic View of Future Economic Growth
Posted at 1:50 p.m. on March 11, 2014
Zachary Goldfarb makes a case for future economic growth by highlighting a chart from the President’s Economic Report that shows an upward trend in total factor productivity: “a measure of how efficient we are, taking into account technological advancement.”
“The past decade-and-a-half has been reasonably good for productivity growth — and that means economic growth might be pretty good in coming decades despite a smaller labor force. There still remains a big open question, however, about whether a broad share of the population will benefit from that growth.”
“The information technology revolution that lifted productivity once again started in the latter half of the 1990s — not as high as it was after World War II, but significantly higher than during the 1970s and 1980s.