Why it’s time to bring back –and modernize– government
by Carlota Perez
Government lag When Ronald Reagan said in the 1980s that “government is the problem”, he was right in only one sense: that the specific policies that were designed to enable the full deployment of the mass production revolution were inadequate for dealing with its exhaustion and decline. In fact, government did not yet know – and indeed could not know – how to deal with the emerging information revolution. It was true, as Schumpeter would have said, that unfettered free markets were better suited for the period of experimentation with new Silicon Valley technologies; and open competition was more likely to persuade the old industry giants to modernize with computers and take-up the new organizational […]