Why Indeed in America Theory History and the Origins of Modern Economic Growth Growth without history First of all article says that the models of growth were studied not by the way of looking in the history of economics but by looking in the data of different countries for 30 years or might be even more number of years It was said that Neoclassical theory explains economic growth in the best way meaning by more representative conclusion and in an extreme cases it was said that the education and saving rate was the things which caused the differences which were found however the technological development was the same all over the world However in Britain compared with the US there were higher salaries and it doesn't seem that education and saving rate can explain this as the years of education were almost the same Also there is a question of why investments which Britain people made were mostly going to US why it was more attractive if the education level was almost the same it seems that the technological development had an effect meaning that it might have been more developed in US compared the Britain because it can be clearly noted that saving rate and educations levels does not explain why salaries in US were higher and the thing with investment Therefore it might be argued that the technological development should also be considered but actually it wasn t 2 History of Theory In this part of article it says that this part does recognise the value of economic history but denies the need for formal theory
