Why is it that 80-90% of increase in output during modern growth is due to productivity increase?

Question

The increase in inputs of labour and capital accounts for only 10-20% of the growth, why so? Can anyone examine these statements?

Answer 1

The increase in productivity is a result of two things. Either you have more workers working to produce the goods, or you employ better methods and technology that make each worker more productive. It is the case that generally, productivity is increased through the second method.

Years ago, things had to be typed out on typewriters. If mistakes were made, it was hard to correct them without typing large portions over. With the advent of computers, a technological increase, things could be typed quicker because it was easier to correct mistakes. As such, productivity increased, but the same number of workers were used. Thus, most of the increase in output is due to changes in technology.

Answer 2

Remember that NOW we are at war, so these ratios are thrown out of the windows!