In 2040, the American economy will be scarcely recognizable. Firms will get smaller and more specialized and many jobs will be automated, while new, more flexible, and less secure work options take their place. More and more, Americans will no longer live under the auspices of stable long-term employment, and will find themselves responsible for managing exigencies, like health insurance and retirement planning, that were once handled by employers. Some observers have seen signs of these looming changes and taken them to mean that American society is headed for ever-rising inequality and general economic disaster. Although challenges do indeed abound, we at the Next American Economy project feel this conclusion is premature.