: Government Is a Growth Engine: "America ignores history at its peril, warns J. Bradford DeLong... [who] believes the U.S. government has always played a vital role in encouraging growth and supporting entrepreneurial innovation. But in an increasingly ideological environment, lawmakers give regulation short shrift, he fears--with dangerous consequences like excessive financialization and the 2008 market meltdown. In his latest book, Concrete Economics: The Hamilton Approach to Economic Growth and Policy, co-authored with Stephen Cohen... DeLong argues that things can be different... invokes the legacy of founding father Alexander Hamilton...."
Werner: Why have new mechanisms for economic growth been elusive?
DeLong: Well, it;s genuinely hard to think of good ways of organizing large groups of people to coordinate what they do. Markets are a unique sweet spot for a particular set of commodities produced under a particular set of conditions that more or less approximated those that Adam Smith faced. Today it's very different, and the problem of what economic theorists call mechanism design is a very difficult one. Look at the trouble we're having simply trying to arrive at a functioning system, let alone an optimal system, for health insurance.