As agricultural productivity rose (roughly 40% of the labor force was in agriculture in 1900), the labor freed up was not destroyed but redeployed—through educating successive generations—into the discovery of better ways to do things, since human intellect is the scarcest commodity and rising productivity frees more of it for discovery.

causalpending

Speaker

Paul Romer

Evidence Quote

as productivity has has grown, we freed up human resources, which really is in some sense the scarcest commodity, the sort of the power of the of the human intellect. We freed up more of that power to engage in this discovery activity

Source

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

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