The government and the market
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Shows that national resources can be allocated in two ways: either by individual interactions on a free market, or by deliberate action by the government, as a representative of the voting majority. States that the American business system shows a mixture of both influences, with some disagreement on the most effective blend. Few will quarrel with the need for the government to set the basic "rules of the game," or with the need for some degree of freedom on the market. Variance of opinion, it is stated, concerns the degree to which government agencies should be permitted to compete directly in the market with individuals and corporations, e.g., through production of goods and services, through spending policies, subsidies, and taxes, and through government hiring and research.
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