American Business Council Outlines Plan to Better Measure

As economic uncertainty continues to shape policymaking, investment decisions, and public debate, the American Business Council (ABC) has proposed a comprehensive set of steps aimed at improving how the U.S. economy is documented, measured, and understood. The initiative comes at a time when traditional economic indicators are increasingly criticized for failing to capture the full complexity of modern economic activity.

From the rise of the digital economy and remote work to supply chain restructuring and shifting labor dynamics, the American economy has undergone profound changes. According to the Council, outdated data collection methods and fragmented reporting systems have created blind spots that hinder effective policymaking and business planning. Their proposal seeks to modernize economic documentation so it reflects today’s realities rather than yesterday’s assumptions.

Why Better Economic Documentation Matters

Economic data is the foundation of decision-making. Governments rely on it to set fiscal and monetary policy, businesses use it to guide investment and hiring, and households depend on it to understand inflation, wages, and growth.

However, the American Business Council argues that current economic documentation often lags behind real-world conditions. Official statistics may take months to publish, rely on narrow definitions of employment, or overlook emerging sectors altogether.

In periods of rapid change, such delays and gaps can have serious consequences:

Policies may be based on outdated conditions
Businesses may misjudge demand or labor availability
Investors may underestimate risks or opportunities
Public trust in economic institutions may erode

Improving how the economy is documented, therefore, is not merely a technical exercise—it is a matter of national competitiveness and public confidence.

The Changing Nature of the U.S. Economy

One of the central arguments behind the Council’s proposal is that the U.S. economy no longer fits neatly into the categories used to describe it decades ago.

Rise of the Digital Economy

Technology-driven sectors such as software, e-commerce, digital services, and platform-based work now account for a growing share of economic activity. Yet many official measures still struggle to accurately track digital output, intangible assets, and data-driven value creation.

Growth of Non-Traditional Work

Freelancers, gig workers, independent contractors, and remote employees make up a significant portion of the workforce. Traditional employment statistics, which focus on full-time payroll jobs, often underrepresent these workers.

Supply Chain Reconfiguration

Trade disruptions, tariffs, and geopolitical tensions have pushed companies to diversify or localize supply chains. These shifts affect productivity, costs, and employment but are not always captured in standard economic reports.

Regional Economic Divergence

Economic growth is increasingly uneven across regions. National averages can mask sharp differences between states, cities, and rural areas.

According to the American Business Council, documenting the economy accurately requires acknowledging and measuring these structural changes.

Key Objectives of the Council’s Proposal

The American Business Council’s recommendations are guided by three overarching objectives:

Timeliness – Ensure economic data is published faster and updated more frequently
Accuracy – Capture real economic activity across all sectors and worker types
Transparency – Make data easier to understand and accessible to the public

By focusing on these goals, the Council believes economic documentation can better serve policymakers, businesses, and citizens alike.

Expanding the Scope of Economic Indicators

One of the core proposals is to expand the range of indicators used to assess economic health. While traditional metrics such as GDP, unemployment, and inflation remain important, the Council argues they should be complemented by additional measures.

Measuring Job Quality, Not Just Job Quantity

Unemployment rates alone do not reveal whether jobs provide stable income, benefits, or opportunities for advancement. The Council proposes tracking:

Wage growth by income level
Job stability and turnover
Access to benefits such as healthcare and retirement plans

Capturing Small Business Activity

Small businesses are a major driver of employment and innovation, yet data on their performance is often delayed or incomplete. Improved documentation could include:

Real-time small business revenue trends
Startup formation and closure rates
Access to credit and financing conditions

Accounting for Informal and Gig Work

Many workers earn income outside traditional payroll systems. The Council recommends better tracking of:

Freelance and platform-based income
Multiple job holding
Self-employment trends

Leveraging Technology for Real-Time Data

The American Business Council emphasizes that modern technology offers tools that were unavailable when many economic reporting systems were designed.

Use of Digital Reporting Tools

Businesses already collect vast amounts of data through payroll systems, accounting software, and digital platforms. With appropriate privacy safeguards, anonymized data could be used to generate faster and more accurate economic insights.

Public-Private Data Partnerships

The Council proposes partnerships between government agencies and private sector data providers to supplement official statistics. These collaborations could improve visibility into:

Consumer spending patterns
Supply chain bottlenecks
Labor market shifts

Artificial Intelligence and Analytics

Advanced analytics and AI could help process large datasets, identify trends earlier, and reduce reporting delays.

Improving Regional and Local Economic Data

National economic data often fails to capture local realities. The Council argues that regional-level documentation should be significantly improved.

State and City-Level Reporting

More frequent and detailed reporting at the state and city level would allow local governments to respond more effectively to economic challenges.

Rural Economy Visibility

Rural areas are often underrepresented in economic data, despite facing unique challenges such as workforce shortages and limited infrastructure. Better documentation could inform targeted development strategies.

Industry Clusters

Tracking regional industry clusters—such as technology hubs, manufacturing corridors, or agricultural centers—would provide deeper insights into localized growth patterns.

Standardizing Definitions and Methodologies

Another major concern raised by the American Business Council is inconsistency in how economic terms are defined and measured across agencies.

Different definitions of employment, productivity, or business formation can lead to conflicting interpretations of economic conditions. The Council recommends:

Greater coordination among federal agencies
Standardized definitions where possible
Clear explanations when methodologies change

Consistency, the Council argues, is essential for maintaining trust in economic data.

Enhancing Transparency and Public Access

Economic data is only useful if people can understand and access it. The Council proposes several steps to improve transparency.

User-Friendly Data Platforms

Economic information should be presented in clear, interactive formats that allow users to explore trends and comparisons easily.

Plain-Language Explanations

Technical reports often exclude non-experts. The Council suggests accompanying major data releases with plain-language summaries that explain:

What the data shows
What has changed
Why it matters

Open Data Policies

Wherever possible, raw data should be made publicly available to researchers, journalists, and businesses, fostering independent analysis and innovation.

Addressing Data Gaps During Economic Shocks

Recent crises have exposed weaknesses in economic documentation during periods of rapid change. The Council highlights the need for emergency data protocols.

During recessions, pandemics, or financial shocks, policymakers require near real-time information on:

Employment disruptions
Business closures
Household financial stress

The Council recommends pre-established systems that can be activated quickly during emergencies, reducing reliance on slow or incomplete data.

Implications for Policymaking

Improved economic documentation has far-reaching implications for policy.

More Targeted Interventions

Better data allows governments to design policies that address specific problems rather than applying broad, blunt measures.

Reduced Policy Lag

Faster data reduces the risk of acting too late or overcorrecting based on outdated information.

Increased Accountability

Clear documentation makes it easier to evaluate whether policies are working as intended.

According to the Council, stronger economic data leads to better governance.

Business and Investor Benefits

Businesses and investors also stand to gain from improved economic documentation.

More accurate demand forecasting
Better labor market insights
Reduced uncertainty for investment decisions
Enhanced confidence in long-term planning

For small and medium-sized enterprises, in particular, access to timely and relevant data can level the playing field with larger corporations.

Challenges and Concerns

Despite broad support for modernization, the Council acknowledges potential challenges.

Privacy Protection

Using digital and private-sector data raises concerns about privacy and data security. The Council emphasizes the need for strict safeguards and anonymization standards.

Implementation Costs

Upgrading data systems requires investment. Policymakers must weigh upfront costs against long-term benefits.

Coordination Complexity

Aligning multiple agencies and stakeholders is difficult, but the Council argues it is necessary.

A Call for Collaboration

The American Business Council stresses that improving economic documentation is not the responsibility of government alone. It calls for collaboration among:

Federal and state agencies
Businesses and industry groups
Academic institutions
Technology providers

By working together, these stakeholders can create a more accurate and responsive picture of the economy.

Conclusion: Documenting an Economy in Transition

The U.S. economy is evolving faster than ever. Old frameworks struggle to keep pace with new forms of work, production, and value creation. The American Business Council’s proposal reflects a growing recognition that how we document the economy shapes how we understand and manage it.

By expanding indicators, leveraging technology, improving transparency, and strengthening regional data, the Council believes the U.S. can build an economic documentation system fit for the 21st century.

In an era of uncertainty, accurate and timely economic data is more than a technical necessity—it is a strategic asset. Whether policymakers seize this opportunity may determine how effectively the nation navigates the challenges and opportunities ahead.

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