The Rise and Fall of American Growth: 8 key ideas
The core ideas of The Rise and Fall of American Growth, each in under a minute, written in our own words. Want the full depth? Get the book.
- IDEA 1 OF 8
One century changed daily life
Gordon argues that the century from 1870 to 1970 was special.
In that period, American life changed more than ever before, as homes gained electricity, running water, cars and modern medicine.
- IDEA 2 OF 8
Great inventions drove growth
Gordon identifies a set of great inventions, such as electricity and the internal combustion engine, that transformed productivity.
These inventions changed work, transport and home life. Their effects spread for decades.
- IDEA 3 OF 8
Homes became healthier and easier
Gordon describes how indoor plumbing, refrigerators and washing machines transformed households.
These changes freed time and improved health, especially for women. Drudgery declined sharply, and families gained hours each week for other activities.
- IDEA 4 OF 8
Productivity grew fastest mid-century
Gordon uses data on total factor productivity, a measure of efficiency, to show that growth was fastest between about 1920 and 1970.
He argues this period was unique. It may never be repeated.
- IDEA 5 OF 8
Growth slowed after 1970
Since 1970, Gordon argues, productivity growth has slowed.
Despite computers and the internet, recent inventions have not transformed life as deeply as earlier ones. Gains have been narrower. Living standards improved more slowly.
- IDEA 6 OF 8
Digital technology has limits
Gordon argues that digital innovations mainly affect communication and entertainment.
He believes they have not raised productivity as much as electricity or cars did. Their effects are real but limited.
- IDEA 7 OF 8
Headwinds slow future growth
Gordon identifies headwinds: rising inequality, slowing education gains, an ageing population and high debt.
These factors, he argues, will keep growth slow. Each one drags on progress. Their combined weight is heavy.
- IDEA 8 OF 8
Policy can help, but limits remain
Gordon suggests policies to improve education and reduce inequality.
But he believes the extraordinary growth of the special century is unlikely to return. Expectations should be modest. Hope must be realistic.
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