Prior to 1700, the global economy essentially remained stagnant, with an average annual growth rate of 0.1% over the preceding 17 centuries, a pace at which it would take nearly a millennium for production to double. The advent of spinning jennies and steam engines marked a turning point. Between 1700 and 1820, global growth increased fivefold to 0.5% annually. By the late 19th century, it had risen to 1.9%. In the 20th century, the average growth rate was 2.8%, doubling production every 25 years. Growth has not only become the norm but has also accelerated.
— news from The Economist
— News Original —
What if AI made the world’s economic growth explode?
UNTIL 1700 the world economy did not really grow—it just stagnated. Over the previous 17 centuries global output had expanded by 0.1% a year on average, a rate at which it takes nearly a millennium for production to double. Then spinning jennies started whirring and steam engines began to puff. Global growth quintupled to 0.5% a year between 1700 and 1820. By the end of the 19th century it had reached 1.9%. In the 20th century it averaged 2.8%, a rate at which production doubles every 25 years. Growth has not just become the norm; it has accelerated.