The Structure of Production
New Revised Edition

Mark Skousen (Author)

9781479848522

Paperback / softback, published 25 September 2015

417 pages
22.9 x 15.2 x 2.5 cm, 0.676 kg

"Skousens Structure of Production should be a required text at our leading universities. The book masterfully juxtaposes the ideas of the 'Austrians' against mainstream economics yet it is balanced, fair, well written and clearly illustrated. It is an important book for students of economics and a treasure for academics." - John O. Whitney,Emeritus Professor in Management Practice at Columbia University "The next economics will have to be centered on supply and the factors of production rather than being functions of demand. I've read Mark Skousens book twice, and it comes the closest to achieving this goal." - Peter F. Drucker,Claremont Graduate University

In 2014, the U. S. government adopted a new quarterly statistic called gross output (GO), the most significance advance in national income accounting since gross domestic product (GDP) was developed in the 1940s. The announcement came as a triumph for Mark Skousen, who advocated GO nearly 25 years ago as an essential macroeconomic tool and a better way to measure the economy and the business cycle. Now it has become an official statistic issued quarterly by the Bureau of Economic Analysis at the U. S. Department of Commerce.


In this new revised edition of Structure of Production, Skousen shows why GO is a more accurate and comprehensive measure of the economy because it includes business-to-business transactions that move the supply chain along to final use. (GDP measures the value of finished goods and services only, and omits B-to-B activity.) GO is an attempt to measure spending at all stages of production. Using GO, Skousen demonstrates that the supply-side of the business spending is far more important than consumer spending, is more consistent with economic growth theory, and a better measure of the business cycle.