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We may see it again as people figure out how to use the Internet to advance productivity.
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The Second Industrial Revolution infrastructure advanced productivity across every industry, from automobile production to suburban commercial and residential building developments along the interstate highway exits.
It can, for example, be brought about when advancing productivity enables the economy to produce more goods and services at lower cost, raising consumers' real incomes.
If prices are falling because of advancing productivity, as at the end of the 19th century, it is a sign of progress, not economic collapse.
Agricultural biotechnology has the potential to advance crop productivity production enhancement and improve food security at global level.
After a visit to Burma (now Myanmar) in 1955, Schumacher concluded that poor countries might realize advances in productivity by adopting advanced technologies, but that those advances would do little to increase employment.
The economy, he concluded, was almost certainly capable of higher levels of growth without inflation than in the past because of a sharp gain in the advance of productivity, the basic measure of business efficiency.
The fundamentals are there for a great advance: extraordinary productivity; surging capital spending, including new investment in information technology; low inventories; job creation; and rising personal incomes.
With advances in productivity holding, inflation will be mitigated even if growth is strong.
"The prospects for sustaining strong advances in productivity in the years ahead remain favorable," Mr. Greenspan said.
Although core measures of prices are rising slightly faster than a year ago, continuing rapid advances in productivity have been containing costs and holding down underlying price pressures.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com