How the U.S. Economy Is Like a (Very) Big Business
Last Updated: 08/05/08
This article offers a perspective on analyzing the growth of the U.S. economy by treating the economy as a very large firm. A well-functioning economy maximizes households’ well-being rather than firms’ profits, so policymakers’ objectives and motivations are not as clear-cut as those of company chief executives. Still, as in any business, identifying areas of weakness and relative strength in the economy is inherently valuable in guiding decision-making.