Heterodox Economic Thinking and Public Policy

TLDR: The belief that collective action is essential not only for the maintenance of the rights of man summed up in the term "individualism," but also to provide the best opportunities for their development through economic growth and a more equitable distribution of wealth and income is almost a cliche as discussed by the authors.

Abstract: That current American economic policy is founded in a faith in the efficacy of collective action, or more loosely, the welfare state, is almost a cliche. By collective action I am not merely referring to government but also the functioning of a host of highly organized public institutions, such as the corporation, the security and commodity exchanges, the church, the school, and the trade union. But what sets the state apart from the other institutions is its role as the ultimate arbiter of disputes backed by the physical force to maintain law and order. National economic policy over the past four decades gives ample testimony to the belief that collective action is essential, not only for the maintenance of the rights of man summed up in the term "individualism," but also to provide the best opportunities for their development through economic growth and a more equitable distribution of wealth and income. Thus, by now, for the vast majority of the American people, the basic decision of social policy has been made; namely, that collective action must be both positive and pervasive. While even the most conservative today accept a degree of government intervention that would have been decried a few generations ago, there are, of course, substantial differences of opinion as to the limits, pace, and emphasis of such action. The shift in attitude toward the role of government which began after the Civil War accompanied many radically new problems which, in large part, were not amenable to solution within the framework of orthodox economic thinking. Thus, the heterodox writer, less fettered by the dogma and preconceptions of the past,