The old way of thinking about technical progress in economics is flawed. The concept of neutral and non-neutral capital and labor augmented technical progress doesn't work in economic models. A new approach called labor saving technical progress is introduced to avoid this problem. This new theory shows that technical progress always saves labor. Economic growth is influenced by both technical progress and capital growth. Formulas are provided to connect total factor productivity with economic growth. This new theory can be applied in growth models and other areas where CES functions are used, offering a fresh perspective on the Solow model and linking Solow's growth accounting with neo-classical growth theory.