This chart has three lines: One shows a (very reasonable) projection of the maximum amount of goods and services the economy could produce, estimated in 2007. Another shows a more recent estimate. And the thick solid line is what the economy actually produced.

Projections are just that. But there should be no doubt that the economy is underperforming, and this chart brings that reality into sharp relief. If the solid line were closer to the dotted line — either one — then more people would have jobs, living standards would be higher, it would be easier for folks to afford medical care and for parents to afford tuition — the machine of capitalism would be bringing more people greater opportunity to flourish.

— Michael R. Strain is deputy director of economic policy studies and resident scholar at the American Enterprise Institute. You can follow him on Twitter at twitter.com/MichaelRStrain.