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Will the Productivity Revolution Be Postponed?

US President Joe Biden clearly has bet on faster productivity growth to pay for his $4.1 trillion American Jobs Plan and American Families Plan. But history suggests that any acceleration of productivity growth is likely to be delayed – perhaps by decades.

BERKELEY – Productivity growth changes everything. In advanced economies with a slowly growing labor force and already-large capital stock, it typically accounts for the majority of output growth.

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