According to Angus Maddison, a famed historical statistician, the growthrate of world economy has accelerated in the last 180 years (1820–2000). Theworld GDP has reached 36.5 trillion dollars in 2000 (52-fold increase since 1820),per capita GDP 6,000 dollars (8-fold increase), while the world population hasexceeded 60 billion (nearly 4-fold increase—see Table 1 in the text). The countrythat had led the growth was Great Britain, the home of the Industrial Revolution.Although Great Britain lagged behind the United States in GDP in the latter halfof the 19th century, it still kept the leading position in foreign trade and foreigninvestment (as well as in the size of foreign territories and naval power).Then in the early 20th century the United States surpassed Great Britain inalmost all areas of economic acivity, except probably in shipping and foreigninvestment. The factors that contributed to the growth of US economy were (1)abundance of natural resources, (2) continual supply of labor force (in the form ofmostly European immigrants), (3) a high level of technological achievement, (4)ample supply of capital both domestically and internationally, (5) legal systemsfavorable to the pursuit of entrepreneurs, (6) discipline at the work place, and,among other things, (7) the existence of an enormous domestic market. Consumerspending, indeed, was so brisk that it might be said that American capitalism basedon personal consumption had began during this period (1865–1939).The importance of consumer spending in the US economy is obvious. Itcomprised 75.7% of GNP in 1929, while domestic investment 15.5%, publicexpenditure 8.1%, and foreign investment 0.8% (no figure indicated for foreigntrade in 1929—see Table 6). This means that the more goods and services Americanpeople consumed, the stronger American economy became.Although food (26.9%), clothing (14.2%), and housing (28.1%), predominatedthe list of consumers’ items until after World War II, durable goods were already avisible presence at the end of the 19th century: sewing machine (improved by IsaacM. Singer in the 1850s), telephone (invented by Alexander Graham Bell in 1876),phonograph (invented by Thomas A. Edison in 1879), and Kodak camera (inventedby George Eastman 1888), to name a few. Automobiles (Model T Ford), radios,washing machines, vacuum cleaners, electric fans, electric irons, electric stoves,and electric refrigerators were added to this list in the early twentieth century.The invention of a safely operated passenger elevator (patented by Elisha G.Otis in 1861) enabled the construction of high-rises (skyscrapers). The invention ofcheaply produced plate glass transformed the appearance of windows: cars, stores,and houses. And the invention of motion pictures forever changed the nature ofAmerican pastimes.Department stores, drugstores, discount stores, and mail order stores were alsonovel ideas. Through such pioneers as R. H. Macy’s (est. 1851), Woolworth (est.1879), Walgreen (est. 1902), and Sears Roebuck (est. 1895), people began to buythings, which had been produced by machines and sold at ‘fixed prices.’Advertisements soon became a sine qua non for encouraging consumption.They iterated the names and merits (‘differences’) of the new products, fromtobacco and soap to fashionable coats and automobiles. People (i.e. consumers),who had been taught to work hard and be frugal, putting away as much money aspossible for hard times, began slowly (but irreversibly) to move away from suchteachings (‘worldly asceticism,’ if you like) and enjoy ‘shopping’ for the first time,a mundane but effective act in realizing an economic takeoff.To somewhat lesser extent, it is true, foreign trade and foreign investmentcontributed to the growth of American economy; but it is obvious that massproduction and mass consumption, supported by aggressive advertising, marketresearch, and sales drives, not only boosted American economy to the top but offereda perfect model (such as it was) for social and economic progress throughout theworld.