The Rise and Fall of American Growth

784 pages, 2016

Robert J. Gordon

Takeaways

Description

How did the United States' high standard of living come to be, and why can future growth be under threat? In the century after the Civil War, an economic revolution improved the American standard of living in ways previously unimaginable.

Electric lighting, indoor plumbing, motor vehicles, air travel, and television transformed households and workplaces. But has that era of unprecedented growth come to an end? Weaving together a vivid narrative, historical anecdotes, and economic analysis, The Rise and Fall of American Growth challenges the view that economic growth will continue unabated; it also demonstrates that innovations between 1870 and 1970 cannot be repeated.

Gordon contends that our productivity growth will be further held back by the headwinds of rising inequality; stagnating education; an aging population; and rising debt from college students and the federal government.

Understanding the American Economic Growth

In The Rise and Fall of American Growth, Robert J. Gordon explores the unprecedented economic growth that took place in the U.S. from 1870 to 1970. He argues that this was a one-time event and unlikely to be repeated. It's a fascinating look into the factors that contributed to this growth.

The Role of Technological Innovation

Gordon digs into the role of technological innovation in driving economic growth. He suggests that the major innovations of the late 19th and early 20th centuries, such as electricity and the internal combustion engine, had a far greater impact on economic growth than recent technological advancements.

The Future of American Economic Growth

Gordon paints a somewhat pessimistic picture of the future of American economic growth. He believes that the pace of innovation has slowed and that future growth will not match the rates seen in the past. This is a thought-provoking perspective that challenges the common belief in endless progress.

The Impact of Inequality

The Rise and Fall of American Growth also explores the impact of inequality on economic growth. Gordon argues that the growing wealth gap in the U.S. is a major obstacle to future growth. This is a crucial point to consider in discussions about economic policy and social justice.

The Importance of Education

Gordon emphasizes the importance of education in driving economic growth. He suggests that improvements in education were a key factor in the rapid growth of the American economy in the 20th century. This takeaway underscores the need for continued investment in education.

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The Rise and Fall of American Growth... is the most important economic book of the year, if not the decade.

Paul Krugman - Economist, Columnist

Robert J. Gordon's The Rise and Fall of American Growth is an extraordinary work of economic scholarship.

Martin Wolf - Journalist, Economist

The Rise and Fall of American Growth is likely to be the most interesting and important economics book of the year.

Lawrence Summers - Economist, Academic

This is a book well worth reading—a magisterial combination of deep technological history, vivid portraits of daily life over the past six generations and careful economic analysis.