subtract the growth in factories, population and education. it s the remainder, the party that humans thought of, rather than the part that they found. and it has been slowing down. according to a new report by the hamilton foundation before 18973 tfp increased by 1.9% per year. since 1973 it s been 0.7%. sounds dry, 0.7 to 1.9, but here s what it means for your paycheck. if we stayed on the trend we were on between the 1940s and 70s our compensation would be $18 higher today or 51% more than it is. now, many economists think that slow down has been behind the slow down in credit over the last few decades where the connection between tfp and financial crisis comes in. americans were used to seeing their living standards rise. when they stopped rising the way they had in previous years they turned to credit to fill the gap. we re paying for it. but if we re looking for sustainable recovery one that leads to a durable prosperity and frankly better lives, we have to get that innovation m