Improvements in the productivity of labor are the key to economic growth.
And while productivity comes from investing workers with more capital to use productively, the real secret to that is technological improvements that allow a worker to effectively control more pieces of capital.
But all this can be hard to see, so check out this video:
Do note that the pit crew is a lot larger, so the approximately twenty to one improvement in time in the pit may not be all productivity improvements. But, having said that, I’m guessing that the pit crew probably does a lot more now than they used to too.
Via Carpe Diem.
Cross-posted from SUU Macroblog (which is required reading for my students).