Summary: Brian Albrecht argues that the future of productivity growth in the U.S. looks promising despite recent sluggishness. He highlights three reasons for optimism: recent positive trends, America’s competitive advantage in reallocating resources, and the potential impact of AI on productivity. Overall, these factors suggest a possible resurgence in productivity growth ahead.
Main Street’s prosperity hinges on a less flashy metric: productivity growth. (View Highlight)
Most importantly for productivity, the U.S. remains a leader in directing resources to its most productive companies (View Highlight)
In the U.S., efficient firms win consumers; that’s not true everywhere else, where size is more determined by things like political favoritism. This competitive reallocation is a key driver of productivity growth that sets the United States apart from its peers. (View Highlight)
Never bet against America in the long run. The ability of the American economy to reallocate resources to more productive firms and encourage innovation through competitive pressure creates a natural tendency towards productivity growth over time. (View Highlight)
we are on the verge of an AI-driven boom. The U.S. economy’s ability to move workers and resources around is especially powerful when new technologies emerge. (View Highlight)