The Wealth Creator
Seen from the long arc of history, the rate of change has been accelerating. This holds important implications for society and investing, and it has significantly affected the United States’ economic output over the past couple of centuries.​

U.S. Real GDP/Capita Chart​​​​​​​

  • Over the long term, real GDP growth per capita has been accelerating. From 1650-1800, real GDP per capita grew 0.5%. From 1800-1950 it grew 1.4% and from 1950-2019 it grew 1.9%, nearly four times more than it did during the earliest period stated.

  • The increasing speed of innovation is paramount to this growth in GDP as we have discussed in the past (see Alger whitepaper “The Enduring Force of Innovation​”). This accelerating pace of innovation is present in computer chips as made famous by Moore’s law and also in wireless telecommunications, energy, information storage and artificial intelligence.

  • While global economic growth may be slower than it was a few years ago, the underlying trend built on innovation is strong and may likely point to material progress in disruptive developments over the next couple of decades, as the new technological revolution marches on (see Alger white paper “A New Era Emerges: The Age of Connected Intelligence​”). ​


The views expressed are the views of Fred Alger Management, LLC as of January 2020. These views are subject to change at any time and they do not guarantee the future performance of the markets, any security or any funds managed by Fred Alger Management, LLC. These views are not meant to provide investment advice and should not be considered a recommendation to purchase or sell securities.

This material must be accompanied by the most recent fund fact sheet(s) if used in connection with the sale of mutual fund shares.

Risk Disclosure: Investing in the stock market involves certain risks, and may not be suitable for all investors. Growth stocks tend to be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. Technology companies may be significantly affected by competition, innovation, regulation, and product obsolescence, and may be more volatile than the securities of other companies.​

Fred Alger & Company, LLC 360 Park Avenue South, New York, NY 10010 / 800.305.8547 (Retail) / 212.806.8869 (Institutional) ​