The Role of Government

jaredbernsteinblog.com — The President and Gov Romney gave dueling speeches in the swing state of Ohio Thursday, laying out broad economic themes.Their main argument is far less than you’d think about jobs records, the role of private equity, who best understands the economy, how much better/worse things would be if Congress would just cooperate. Their main argument is about the role of government in our lives. Neither believes that government should be a dominant force — both stress the primacy of the private market in a capitalist economy. Both recognize that absent market failures, the incentive structure of the private sector will provide the best opportunities and allow people to make the best choices, in the sense of promoting the most well-being for the most people. But the President sees more market failures, market barriers, inherent instabilities, inequalities and inefficiencies than does Governor Romney. And in this regard, he sees more of a role for government.

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