This book presents an integrated view of the U.S. economy as a whole, looking back at serious problems experienced in the 1970s as part of fashioning a systematic statement of what reforms are necessary to restore to the U.S. economy the growth and stability of prior decades.

CONTRIBUTORS vii PREFACE ix 1 U.S. Performance in Historical and International Perspective 1 U.S. Economy at the Crossroads 3 MICHAEL J.BOSKIN II Productivity and Economic Growth 2 Economic Growth and Productivity 23 MICHAEL J. BOSKIN III Problems of Short-Term Economic Stability 3 Inflation: A Perspective from the 1970s 53 JOHN L. SCADDING 4 The Nature of the Contemporary Unemployment Problem 83 JOHN H. PENCAVEL IV Regulation 5 The New Social Regulation: Implications and Alternatives 119 DAVID J.TEECE. V The International Economy 6 The United States and the World Economy 161 JOHN T. CUDDINGTON RONALD I. McKINNON VI The Role of Government in the Economy 7 Federal Government Taxes and Tax Reform 199 JOHN B. SHOVEN 8 State and Local Finance in the 1980s 223 GEORGE F. BREAK 9 Federal Government Spending and Budget Policy 255 MICHAEL J. BOSKIN VII Potential Policy Problems of the 1980s 10 Social Security and Welfare: What We Have, Want, and Can Afford 293 LAURENCE J. KOTLIKOFF 11 Defense Spending and the Uncertain Future 325 HENRY S. ROWEN 12 Energy Problems and Policies 353 JAMES L. SWEENEY 13 Competition and Health Care Costs 393 PATRICIA DRURY ALAIN ENTHOVEN VIII Summary and Conclusion 14 An Overview 421 MICHAEL J. BOSKINNOTES 427 REFERENCES 437 ABOUT THE AUTHORS 447 INDEX 451 PUBLICATIONS LIST 457