If this assessment is reasonably close to the mark, the prospects for future improvements in our nation’s longer-run living standards should be quite favorable, and this underscores the importance of maintaining an open, flexible, and stable economy. Even small increases in productivity growth have tremendous cumulative effects over time on production and income.
Let me close by quoting the Nobel laureate Robert Lucas who once said that when one contemplates the effect that sustained economic growth has on human welfare, it is hard to think about anything else. References Baily, Martin (2003). "The U.S. Economic Outlook: Investment, Productivity, Deflation," (72 KB PDF) slide presentation. Washington: Institute for International Economics, April. Bernanke, Ben S. (2005).