Small differences in growth rates compound into dramatically different income levels: at 2.1% per year income per capita increases about eightfold over 100 years (e.g., $30,000 to $240,000), but at 2.6% it increases about thirteenfold (to ~$390,000), so half a percentage point produces nearly twice the standard of living over a century.

factualpending

Speaker

Paul Romer

Evidence Quote

at 2.1% rate of growth per year, income per capita in a nation can increase by a factor of about eight over 100 years

Source

Paul Romer on Growth 8/27/2007EconTalk
Created: 6/16/2026, 2:38:24 PM

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