National policy making in a global economy: The case for U.S. economic planning

In 1980 the Joint Economic Committee completed the Special Study on Economic Change. This 20 volume, 3-year project, was premised on the fact that: ‘fundamental economic, social, political, international and technical conditions have changed, and are still changing markedly’. This suggests that conventional wisdom and established economic tools may not be equal to meeting the challenge of making sound policies in the economic sphere. The so-called laws of economics have not been repealed, but all guiding principles presuppose a certain environment of conditions, customs and practices—and when these change, the implementation of new policies and the modes of adjustment have to change also. This paper examines the problem of devising policy instruments for economic management, identifying the facts of the changing economic environment and the main difficulties facing world economic development.