Productivity Drives Growth

The press release for Robert Solow’s 1987 Nobel Prize noted:

technological development will be the motor for economic growth in the long run. In Solow’s model, if continuous technological progress can be assumed, growth in real incomes will be exclusively determined by technological progress.

Productivity isn’t everything, but, in the long run, it is almost everythingA country’s ability to improve its standard of living over time depends almost entirely on its ability to raise its output per worker.”
— Paul Krugman, Professor of Economics and International Affairs Emeritus at Princeton University

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