The Business Press Asks: Is Less Government Better for Business?

from The New York Times

What is the purpose of government in the American economy? To many people these days, it is axiomatic that less government is invariably better for the economy and the nation. In this way, tax cut after tax cut is justified despite a growing federal budget deficit. Such thinking also lies behind the efforts to privatize Social Security.

But it is hard to square this view that government is always an economic menace with the long history of capitalist development. Going back in time, every successful capitalist economy in the world has had an active partnership between government and business.