U.S. Economic Productivity Growth

Productivity is a major factor driving the U.S. economic outperformance compared to other wealthy nations. Since 1990, U.S. productivity per worker has increased by about 70%, while similar countries have seen increases of only 40% to 50%. This trend can be attributed to several factors including a dynamic business environment that facilitates both company failures and new startups, significant investments in technology and research, and a strong ability to adopt innovative technologies rapidly. As a result, the U.S. has a large productivity advantage that translates into higher average wages for its workers, even in states considered economically disadvantaged.