Can growth itself be a driver of further growth? This paper revisits Allyn Abbott Young's seminal work on increasing returns and economic progress, highlighting his perspective on the endogenous and cumulative nature of economic growth. The research explores Young’s ideas in the context of modern theories of endogenous growth, revealing their enduring relevance. Young's central message, that “the division of labor depends in large part upon the division of labor,” leads to the deduction that growth is self-sustaining rather than self-exhausting. The analysis emphasizes Young's view of the “togetherness” of economic phenomena and his skepticism about integrating supply and demand to fully explain economic growth. By re-examining Young's insights, the study sheds light on the fundamental drivers of economic progress and the limitations of traditional economic models. Young's perspective provides a valuable framework for understanding why growth tends to be cumulative, impacting discussions about economic development and the design of policies aimed at fostering long-term prosperity. His economic phenomena ideas are indeed significant.
Published in the Journal of the History of Economic Thought, this article aligns with the journal's mission of exploring the evolution of economic ideas. By providing a perspective on Allyn Young's contributions to endogenous growth theory, the paper contributes to the historical understanding of economic thought and its relevance to contemporary issues.