The economy has many leaders,experts and economists confused, and it is confounding individuals and politicians as well. What most government and corporate leaders are missing is how to look at the economy. As we have written and discussed over the past two years, the American economy is heading toward a New Economy, and the many miscalculations and the extensive confusion are caused by the period of transition from the historical model to something new. Governments dedicated to lowering taxes are having to raise them; corporations focused on growth are having to dig deeper into efficiencies to realize profits; and individuals are turning to financial devices of their own to make ends meet. At present, the country’s models, processes and concepts are essentially out of line with the emerging set of conditions.