Show Less

Alliance Capitalism for the New American Economy

Edited by Alan M. Rugman and Gavin Boyd

Alliance Capitalism for the New American Economy advocates engagement with the USA’s macromanagement problems in a spirit of alliance capitalism, for the development of a more integrated, dynamic economy. Whereas most studies of the USA emphasise the efficiency effects of intense competition between firms, this book stresses that as the new economy becomes more knowledge based, its development necessitates active intercorporate cooperation, especially in high technology sectors.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 1: The American Political Economy

Gavin Boyd


Gavin Boyd The USA is a liberal knowledge-based political economy with an intensely individualistic culture that is a source of vigorous commercial and political entrepreneurship, but also of difficulties in the coordination of economic activities and in the aggregation of interests for governance aligned with the common good. Relations between enterprises tend to be extremely competitive and ventures in cooperation, while based on complementarities, are often instrumental rather than relational. The very active commercial rivalry contributes to potent political competition, resulting in hyper-pluralism that affects all areas of government. Market efficiencies and failures are linked in complex ways with government efficiencies and failures, and these assume international dimensions as the USA becomes more deeply involved in the world economy, through expanding transnational production and trade, and high volume operations in global financial markets. Prominent in the mix of efficiencies and failures are major macromanagement challenges: large trade deficits have become unsustainable, and strong speculative propensities in the financial sector cause dangerously high stock appreciations, followed by sharp declines after losses of investor confidence. Difficulties of functional coordination in the general interest affecting the evolution of the political economy as an advanced complex system were somewhat obscured during the l990s by continuing large speculative stock appreciations: there was unfounded optimism that productivity increases resulting from investment in new technology would sustain the boom although much of the wealth effect went into consumption. The recession that followed was made worse by several major cases of corporate fraud, associated with large bankruptcies that...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.