At this year's Davos meeting (held in New York, not Davos), Brad DeLong ponders the state of balance between government and the private sector.
too much of what is needed for a modern economy to run are "public" goods that an unfettered government-free market simply will not provide, too many disputes over who owns what and what exactly are contractual obligations must be refereed by something--and that something is the government--and there is no guarantee that the market distribution of income will be politically acceptable unless the government puts its large thumb on the scale.
Discussion Question. If today's environment is suited to more government involvement in the economy, then why does the United States seem to be better positioned than Japan or most European countries?
