Comment on “US Economic growth in the gilded age”

Abstract

In this paper, we critically assess the contribution of Field (2007) in this issue. The author casts some doubts concerning the exceptionality of the 20th century as experiencing ‘growth in the era of knowledge based progress’, using new quantitative evidence on the TFP growth on the period 1855–2005, stressing the importance of a proper periodization as well as correcting for biases in earlier assessments by various authors. He shows that the actual TFP growth was rather strong from the 1870s to the first decade of the 20th century, while it was quite low during long periods of the 20th century (1906–1919; 1941–1948; 1973–1989). Field tried to explain this stylized fact using more conventional historical evidence (impact of technological innovation; rise of the Modern Business Enterprise – the latter being favoured by the development of communication technologies). We put forward some methodological discussion concerning the proper meaning of TFP (productivity growth is not the same as technological change) as well as putting the results in a more theoretical perspective (determinants of the periods of high TFP growth). We also stress some elements of a more historical nature not stressed by the author as the role of the State (protectionism, migration policy, R&D…), and more particularly the emergence of the Modern American University during the last three decades of the 19th century.