Simon Kuznets: Production

“[An] epochal innovation [consisting of the] spreading application of science to processes of production and social organization.”

Simon Kuznets

Source: Modern economic growth,(1966), p. 487, as cited in: Peter Temin, ‎Gianni Toniolo (2008) The World Economy between the Wars. p. 7

Science

“The inescapable conclusion is that the direct contribution of man-hours and capital accumulation would hardly account for more than a tenth of the rate of growth in per capita product — and probably less. The large remainder must be assigned to an increase in efficiency in the productive resources, or the effects of changing arrangements, or to the impact of technological change, or to all three”

Simon Kuznets

Source: Modern economic growth,(1966), p. 81

Change

“The rural and urban populations does not necessarily drift downward in the process of economic growth: indeed, there is some evidence to suggest that it is stable at best, and tends to widen because per capita productivity in urban pursuits increases more rapidly than in agriculture.”

Simon Kuznets

Source: "Economic growth and income inequality," 1955, p. 8

“An invariable accompaniment of growth in developed countries is the shift away from agriculture, a process usually referred to as industrialization and urbanization. The income distribution of the total population, in the simplest model, may therefore be viewed as a combination of the income distributions of the rural and of the urban populations. What little we know of the structures of these two component income distributions reveals that: (a) the average per capita income of the rural population is usually lower than that of the urban;' (b) inequality in the percentage shares within the distribution for the rural population is somewhat narrower than in that for the urban population… Operating with this simple model, what conclusions do we reach? First, all other conditions being equal, the increasing weight of urban population means an increasing share for the more unequal of the two component distributions. Second, the relative difference in per capita income between the rural and urban populations does not necessarily drift downward in the process of economic growth: indeed, there is some evidence to suggest that it is stable at best, and tends to widen because per capita productivity in urban pursuits increases more rapidly than in agriculture. If this is so, inequality in the total income distribution should increase”

Simon Kuznets

Source: "Economic growth and income inequality," 1955, p. 7 as cited in: Anthony Barnes Atkinson, François Bourguignon, Handbook of Income Distribution, Vol. 1. Elsevier, 2000 p. 799

Country

“[The principal characteristic of this economic epoch is] a sustained increase in per capita or per worker product, most often accompanied by an increase in population and usually sweeping structural changes.”

Simon Kuznets

Source: Modern economic growth,(1966), p. 1, as cited in: Amitava Krishna Dutt, ‎Jaime Ros (2008) International Handbook of Development Economics. p. 48; Definition of "modern economic growth"

Change