a developed market economy encourage or discourage
democratic values and institutions? And to the
extent that an unfettered market economy creates
forces inimical to democratic values, how can
these forces be most effectively -- one might
even say, economically -- countered?
are the questions addressed in this lecture, which
is divided into three parts. First, I attempt
to characterize the essential properties of the
market economy. Then I explain how the market
economy both supports in part and undermines in
part the central values of a democratic society.
Finally, I describe how collective action through
democratic government can, in principle, temper
the antidemocratic consequences of market forces.
I note that, in practice, political intervention
in the market often promotes one democratic value,
typically equality, over both economic efficiency
and another democratic value, individual freedom.
I conclude by suggesting how public intervention
in markets might be structured to achieve greater
equality or other democratically determined objectives
at minimal sacrifice of economic efficiency or