High tech, basic industry, and the future of the american economy

Abstract A growing number of economists, public policy analysts, and government officials have heralded a transformation said to be occurring in the American economy. The American‐in‐transformation thesis holds that new high‐tech information‐oriented industries are replacing basic industries as the primary source of America's economic stability and growth. This thesis, the authors point out, overstates the extent of the changes which are taking place. According to the best available projections, basic industries will continue to be an important sector of the American economy. Further, basic industries will serve as markets for high‐tech products and services as they modernize their operations. Both sectors of the economy will be needed to sustain an integrated, two‐track economy.