US labor productivity now 2.2% above trend, echoing the 1995 internet boom
inductionheads · x · 2026-09-22
- Noah Smith argues the "Roaring 20s" story is alive and well, and that TFP data is basically useless.
- US labor productivity (2013–2026) was unremarkable through most of the 2010s, then broke sharply higher starting 2020 — now running 2.2% above the old trend.
- The last comparable stretch was 1995–2004, when the internet added close to 3% a year for a decade. The author suggests we're a few years into the sequel.
Related event: US labor productivity runs 2.2% above trend as AI effect shows up(3 posts)→
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