ABSTRACT
The government may increase or decrease the burden of financial regulations, environmental regulations, or labor regulations, but they will neither be wiped out nor expanded to the point that they suffocate American capitalism. The political battles that accompany those developments will center on some novel issues, and there is nothing in the structure of America’s constitutional democracy to ensure that the government will respond to them promptly or wisely. The most promising political reform would be to force the states to adopt neutral, non-partisan redistricting processes. The political logic of economic policy varies with the type of policy. Politics affects the long-run potential of the economy by maintaining political stability, financial stability, a well-functioning legal system, a competitive marketplace, and essential infrastructure. The economic developments were profound, and aside from regular churn, evolution, and competition in a market economy, they were driven by leaps in trade and technologies.
