"Long-term economic growth is generally dependent on three factors: growth in the size of the labor force, growth in the amount of physical capital (e.g., tools, machines, computers) available to workers, and growth in productivity. Productivity is a measure of how well an economy produces goods and services with a given number of workers and amount of physical capital. Productivity growth is often of particular concern to policymakers because it is a vital determinant of long-term economic growth and drives increases in income for businesses and individuals. This Insight examines recent trends in productivity growth in the U.S. economy and particular industries, and briefly discusses potential programs and policies that can increase productivity growth."
CRS Insight, IN10749
Federation of American Scientists: http://www.fas.org/sgp/crs/index.html