PART I Productivity: Trends and Explanations

PA R T I

Productivity: Trends and Explanations

Both theory and evidence support the belief that significant long-run gains, even if not permanent changes in the growth rate, can be achieved by increased investment in the broadest sense, including human capital, technological knowledge, and industrial plant and equipment.

Robert Solow (1992) Nobel Prize Winner in Economic Sciences

Increasing jobs more than output implies a fall in productivity and standards of living. That surely cannot be our goal.

Alan Greenspan (2011) Former Chairman of the Board of Governors of the Federal Reserve