It is often hard to understand exactly what drives economic growth. By definition, economic growth is the amalgamation of labor, capital and technological change. As individuals, we understand that we contribute to this process in our daily lives through our decisions to work, save, consume and invest. Yet it is often difficult to foresee how these choices yield the larger, macroeconomic process of economic development and growth. In his recent paper, economist Robert Gordon, documents the long history of U.S. economic growth, linking periods of slow and rapid growth to three industrial revolutions: steam and railroads; electricity and the internal combustion engine; and the recent advent of computers, the internet and mobile phones. He claims, however, that even if we continue to innovate rapidly, economic growth may be weak and lower than the average growth between 1860 and 2007. Technological change will not be enough to offset the pullback from the “headwinds” of rising income inequality, falling labor force participation rates, lack of widespread education and changing demographic structures. Therefore, looking deeper into socioeconomic factors rather than just the technological aspects of economic growth is critical. Exploring the family foundations and the role of changing family structures in influencing these headwinds is key to fostering sustainable growth.

Read the article “Why Marriage is Good Economics” on aei.org.