Between 1968 and 1980, theUS economy experienced a slowdown in productivity grow

Question

Between 1968 and 1980, theUS economy experienced a slowdown in productivity growth. However,since the mid 1980s, the economy has experienced increases in thegrowth rate in productivity. Can you give reasons why USproductivity growth started to increase during the late 1980s andcontinued throughout the decade of the 1990s? I really need help with the abovequestion. I just don't understand how I am supposed to answerthis. Thank you in advance. Between 1968 and 1980, theUS economy experienced a slowdown in productivity growth. However,since the mid 1980s, the economy has experienced increases in thegrowth rate in productivity. Can you give reasons why USproductivity growth started to increase during the late 1980s andcontinued throughout the decade of the 1990s? I really need help with the abovequestion. I just don't understand how I am supposed to answerthis. Thank you in advance. I really need help with the abovequestion. I just don't understand how I am supposed to answerthis. Thank you in advance.

Explanation / Answer

Productivity growth factors consist of physical capital, humancapital and technology. (Long-run Economic Growth) A large factorof productivity growth was a result of the advances in technology.Physical capital includes machinery and buildings while knowledgehas changed the methods for generating increased productivitygrowth from what was used in prior years. Each of these factors hasplayed an important part in sustaining productivity growth. Theincrease and effectiveness of machinery allowed an individual toincrease his/her output by the day. However, based on our text, themajor growth in productivity was increased because of the retailindustry of Wal-Mart. (Long-run Economic Growth) Wal-Mart began in1962 and has increased very rapidly. By the late1980’s Wal-Mart operated in a total of 29states which increased the productivity rate greatly. (HistoryTimeline, n.d.) The establishing of Wal-Mart and the changes intechnology has helped sustain the productivity growth in the late1980’s through the decade of the1990’s.

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.