The market economy is based on the unplanned, uncontrolled response of both individual producers and corporations to the will and purchasing power of the consumer. The purchasing power that drives this mechanism originates from the productive activity to which the purchasing power responds. Thus, it is a closed circle. A central question is how much this economic entity functions independently and how much it requires support for, and restraint on, the purchasing power – the effective demand – that empowers the system. An important matter is what government regulation is necessary for this machine to insure it serves, not impairs, the public interest. This matter generates some of the most contentious social and political debates currently. Recently, the United States has seen a massive ideological attack on public regulation in and of the economy. This, however, is an escape from thought. Decision, as on other matters, must be made on the merits of the particular case. It is for the larger community interest and its future protection that governmental regulation exists, for there is no divine right of free enterprise.
