The structure and future of the information economy

The structure of the U.S. economy is analyzed to determine whether a shift has occurred from a service to an information economy. National Income Accounting concepts are reviewed to facilitate a critical comparison of the works of Machlup and Porat. Evidence about the future of an information economy is reviewed. It is concluded that the growth of the information economy will not continue at the same rate it has in the past and further that the growth will be in information products, not information services. It is also concluded that it is unwarranted to restructure the National Income Accounts to reflect a change to an information economy.