ABSTRACT
In the past decade in the United States, the assumption has spread that with some exceptions the market can serve the public interest better than government can, and that the role of market-driven strategies should grow ever larger. Throughout the history of the welfare state in the United States the single largest difference between the two major political parties—Democratic and Republican—has been their position on the role of the government in meeting the obligations of the welfare state. As evidence of the power of market forces has gained credibility, the rush is on to abandon state-managed solutions to social problems in favor of market solutions. The impact on the welfare state is enormous. Thus far, it suggests that total dependence on the market is as flawed as total dependence on the state. The chapter also considers few examples in the area of jobs and social mobility.
