This excellent summary of various theories related to the role of the state in market economies is extremely useful by providing perspectives on the forms of government regulation place on economies. Under classic liberalism, theoretically the market was the sole place for all decisions regarding investment, allocation and consumption, as governments were believed to have no place. In practice, proponents argue for minimized state intervention. However, the authors identify three major problems: inevitable downturns in the economies; the organization of mass labour movements; and, the inability to deal with severe poverty. The Great Depression of the 1920s and 1930s is one of the most dysfunctional periods for classic liberalism. Continue Reading →