Productivity and Growth. Chapter 7. Growth is an increase in potential output. Potential Output: the highest amount of output an economy can produce from the existing production function and the existing resources. Real GDP per Person in Five Industrialized Countries, 1870 - 2000.
Potential Output: the highest amount of output an economy can produce from the existing production function and the existing resources.
Queen Elizabeth owned silk stockings. The capitalist achievement does not typically consist in providing more silk stocking for queens but in bringing them within the reach of factory girls in return for steadily decreasing amounts of effort.
Today, the U.S. poverty level for a family of four is about $18,000. If we go back 100 years in U.S. history, and adjust for inflation, that $18,000 would put a family in the upper middle class.
Rule of 72: the number of years it takes for a certain amount to double in value is equal to 72 divided by its annual rate of increase.