Economic growth in Early 20th century (1 janv. 1910 – 1 janv. 1929)

Description:

The period from 1890 to 1910 was one of rapid economic growth of above 4%, in part due to rapid population growth. However, a sharp break in the growth rate to around 2.8% occurred from 1910 to 1929. Economists are uncertain what combination of supply and demand factors caused the break, but productivity growth was strong, enabling the labor cost per unit of output to decline from 1910 to 1929.
- The growth rate in hours worked fell 57% compared to the decline in the growth rate of output of 27%.
- It is generally accepted that the new technologies and more efficient business methods permanently shifted the supply and demand relationship for labor, with labor being in surplus.
- The technologies that became widespread after 1910, such as electrification, internal powered transportation and mass production, were capital saving. Total non-residential fixed business fell after 1910 due to the fall of investment in structures.

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