THE FUTURE ECONOMY “…From 1780 to 1840, output per worker rose 46% and the rea

THE FUTURE ECONOMY

“…From 1780 to 1840, output per worker rose 46% and the real wage index rose by only about 12%, noting that none of these numbers are close to exact. … The significant real wage gains come after 1840 and — in my view — even more after 1870. After 1830 TFP is growing at the higher rate of about 1% a year, still not impressive by the standards of the early 20th century however.

During the early 19th century, there is much creative ferment, but much less in terms of products which translate into gains in living standards for the average person.

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Eventually all of the creative ferment of the industrial revolution pays off in a big “whoosh,” but it takes many decades, depending on where you draw the starting line of course. A look at the early 19th century is sobering, or should be, for anyone doing fiscal budgeting today. But it is also optimistic in terms of the larger picture facing humanity over the longer run.”. – Tyler Cowen