ABSTRACT
Between 1900 and 1980 the gross national product of the United States, at constant prices, increased more than twelvefold. This increase in an 80-year period, amounts to an annual growth rate of 3.2 per cent. Obviously, part of this growth was caused by the increase of population, but even if we eliminate this factor, a considerable growth of real per capita GNP remains: 1.8 per cent. Some countries did better than the United States: Japan’s growth rate over the same period was 4.3 per cent. Some others did less well: the United Kingdom showed only a 1.7 per cent growth rate, which in per capita terms becomes 1.3 per cent. The growth of output, however, has not been even (Figure 1.1). The United States growth rate of 3.2 per cent can, for instance, be split into 2.7 (1900–40) and 3.7 per cent (1940–80). In the postwar years growth accelerated, only to slow down again after 1973. The period up to World War II saw years of rapid growth, but also years of decline. In addition to long periods of acceleration and retardation we also see fluctuations of shorter duration: the recessions of 1953/54, 1957/58, 1969/70 and 1973/75 are postwar examples. Other countries have experienced similar interruptions of growth. Cyclical fluctuations are therefore an essential feature of the growth process, and affect virtually all aspects of economic life: production, income, employment, prices, interest rates, to name some of the more important. Sometimes they are hardly noticed, but their impact becomes clear when they take the form of absolute decreases in gross national product. Gross national product a/the United States,at 1972 prices, 1900–1980 https://s3-euw1-ap-pe-df-pch-content-public-p.s3.eu-west-1.amazonaws.com/9781315019772/63f2bd0f-4f0e-42fe-a3cd-bd7b9d5f66d7/content/fig1_1_B.tif" xmlns:xlink="https://www.w3.org/1999/xlink"/>
