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Historians believed that the standard of living in ancient times saw no or minimal growth over many decades. They calculated that the standard of living of a peasant in the year 100 A.D. is similar to the peasant living in the year 1400 A.D. It is so because the output growth was similar to the growth of population until the industrial revolution in the 18th century.

Based on this conclusion, it is concluded that economic output has not always grown faster than population. The growth was similar before the industrial revolution.

Economists believed that modern economic growth started after the industrial revolution in the 18th century. The industrial revolution initiated factory production. It also encouraged research and development in an extensive manner which brought new technologies for production.

The development of new production technologies after the industrial revolution increased the output per person. The economic growth started to grow at a faster rate than the population. Hence, the modern economic growth happened in the 18th century after the industrial revolution.

Countries of Europe and the USA experienced modern economic growth after the industrial revolution at an early stage. It implies that they have been experiencing modern economic growth for a much longer time. Asian and African countries are those where the modern economic growth reached later and have experienced fewer years of economic growth.

The nations which experienced the modern economic growth at the early phase are more developed than the nations where the modern economic growth reached later. The difference in the standard of living between rich and developing countries shows that the entire world’s nations did not experience the benefits of modern economic growth at the same time.