The Misunderstood Economy: What Counts and How to Count It

Everybody talks about the economy. Everybody has complaints or recommendations. But often, nobody knows what they're talking about. So asserts Eisner in this authoritative analysis of the real and imagined ills of the U.S. economy. In clear, easy-to-understand language, this book explains how economic and social progress are and should be measured, challenging widespread misconceptions about debt and deficit, government spending and taxes, unemployment and inflation, foreign investment and international trade. Eisner argues that government accounting is fundamentally flawed since it fails to distinguish between current and capital expenditures, the way every business firm does. Not only is the deficit--when properly measured--not as large as we think, but government spending is in fact not high enough. Indeed, Eisner claims that we are starving this public investment, which is essential for improving our productivity--and our competitiveness--now and in the next century.