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This will mean rapid productivity growth and, therefore, high overall economic growth.
America's "new economy" has two main characteristics: high investment in IT and rapid productivity growth.
The New Deal's Public Works and Works Progress administrations spurred rapid productivity growth in the midst of the Depression.
There is also some very tentative evidence that the economy may be seeing more rapid productivity growth.
Latvia is a relatively poor European country playing catch-up, and it had rapid productivity growth before the crisis.
In the late 1990's, a belief that the economy was entering an age of rapid productivity gains helped to spur the bull market.
For Mr. Greenspan, however, the new economy still lives: the investment will resume once the recession ends, and so will the rapid productivity growth.
There are countless examples, like the 1960's and again the 1990's, of rapid productivity growth accompanied by rapid employment.
On examination, rapid productivity growth is unlikely to account for the dismal job picture in the United States over the last two and a half years.
Rapid productivity gains, as seen during the information technology-fueled boom of the late 1990s and early 2000s, can boost household incomes, economic growth and government tax receipts.
Looking at these numbers, many conclude that the rapid productivity growth must reflect automation and that automation, in turn, must be responsible for manufacturing's job losses.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com