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Legacies of the War on Poverty

Legacies of the War on Poverty Book Reviews curbing individual freedom. It defi nes a corporatist economy as one with free enterprise but where the state provides public goods and protects society against instability through social welfare programs (like the mixed economies of Europe). Phelps argues that this system has failed in Western Europe — they have little or no dynamism, and as a consequence, underdevelopment, low and not necessarily stable employment persists (p. 303). He believes that an increased role of the state slowed the infl ow of new commercial ideas needed to stimulate and spur experimenting (p. 192). In Phelps’ view, innovation by private enterprise is the driving force of the modern economy, with little room for government. The role of the government in economic development is probably a bit more complex. As stated before, modern governments have played a signifi cant role in providing resources for research and development. The technological frontier has often moved forward through the synergetic efforts of public and private research. Laws and regulation are needed to safeguard property rights as Phelps himself admits and also to level the playing fi eld. Growing income inequality may itself be an impediment to dynamic and sustainable growth. The book, however, http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Eastern Economic Journal Springer Journals

Legacies of the War on Poverty

Mitra, Sophie
Eastern Economic Journal , Volume 42 (2) – Jun 22, 2015
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References (5)

Publisher
Springer Journals
Copyright
Copyright © 2015 by Eastern Economic Association
Subject
Economics; Economics, general; Economic Theory/Quantitative Economics/Mathematical Methods
ISSN
0094-5056
eISSN
1939-4632
DOI
10.1057/eej.2014.56
Publisher site
See Article on Publisher Site

Abstract

Book Reviews curbing individual freedom. It defi nes a corporatist economy as one with free enterprise but where the state provides public goods and protects society against instability through social welfare programs (like the mixed economies of Europe). Phelps argues that this system has failed in Western Europe — they have little or no dynamism, and as a consequence, underdevelopment, low and not necessarily stable employment persists (p. 303). He believes that an increased role of the state slowed the infl ow of new commercial ideas needed to stimulate and spur experimenting (p. 192). In Phelps’ view, innovation by private enterprise is the driving force of the modern economy, with little room for government. The role of the government in economic development is probably a bit more complex. As stated before, modern governments have played a signifi cant role in providing resources for research and development. The technological frontier has often moved forward through the synergetic efforts of public and private research. Laws and regulation are needed to safeguard property rights as Phelps himself admits and also to level the playing fi eld. Growing income inequality may itself be an impediment to dynamic and sustainable growth. The book, however,

Journal

Eastern Economic Journal – Springer Journals

Published: Jun 22, 2015

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