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Gaining Ground: Markets Helping Government
Paperback
Business GeneralGeneral Political Science
ISBN13: 9780815739326
Publisher: Brookings Institution Press
Published: Aug 17 2021
Pages: 308
Weight: 0.95
Height: 1.00 Width: 5.80 Depth: 8.80
Language: English
Focusing on ways that markets work with, rather than against, governments to enhance public welfare.
The optimal mix of market forces and government intervention to allocate resources is one of the longest-standing problems facing human civilization. At the theoretical extremes, resources in centrally planned economies are allocated by the government, while resources in capitalist economies are allocated by private markets. In practice, market forces and government interventions co-exist to allocate goods and services in a political environment with shifting pressures to give one approach more responsibility than the other.
Winston synthesizes the empirical evidence on the efficacy of markets in helping to protect consumers against anti-competitive behavior and when technology appears to prevent price competition; to enable individuals to make more informed decisions; and to reduce negative externalities, improve public production, and encourage innovations. Importantly, Winston presents evidence indicating how markets can also help to reduce poverty, promote fairness in labor markets, and provide merit goods. Winston subjects his assessment to a robustness test by explaining how market forces have helped to address the COVID-19 pandemic by, for example, finding new ways for people to work safely and providing incentives for pharmaceutical companies to develop safe and effective vaccines.
Winston takes a proactive approach in his conclusion by suggesting the formation of a major Commission composed of academics, policymakers, and businesspeople. Such a panel could explore how market forces could provide greater help to government to address economic and social problems and could provide specific recommendations to facilitate market solutions where appropriate.
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