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Onwards and upwards: American productivity growth during the Great Depression

Onwards and upwards: American productivity growth during the Great Depression

Gerben Bakker, Nicholas Crafts, Pieter Woltjer, The CAGE Background Briefing Series No. 52, July 2016
background briefing series, economic history, policy briefing

Gerben Bakker, Nicholas Crafts, Pieter Woltjer, The CAGE Background Briefing Series No. 52, July 2016

The Great Depression is considered one of the darkest times for the US economy, but some argue that the US economy experienced strong productivity growth over the period. This column reassesses this performance using improved measures of total factor productivity that allow for comparisons of productivity growth in the Depression era and in later decades. Contrary to Alvin Hansen’s gloomy prognosis of secular stagnation, the US economy was in a very strong position during the 1930s by today’s standards.

Economic History