The US economy is seeing the highest boost in labor productivity in decades. While artificial intelligence could explain a small part of this, the main reason is a surge in business creation and economic dynamism.
The Census Bureau reported that 5.5 million new business applications were filed in 2023, which is the highest on record. This is according to analysis from the Aspen Economic Strategy Group and reported in the The Washington Post.
The 2020 pandemic economic and labor disruptions were severe, but they shook many entrepreneurs into action. We are now seeing a resurgence in what makes the American economy the strongest in the world - people willing to take risks and to create something new.