
New Books in Economic and Business History Sidney A. Shapiro and Joseph P. Tomain, "How Government Built America" (Cambridge UP, 2024)
Dec 1, 2024
Sidney A. Shapiro, a law professor specializing in administrative law, and Joseph P. Tomain, Dean Emeritus with a focus on energy and regulatory policy, discuss how government has been key to America's development despite rising anti-government sentiments. They tackle the balance between individualism and communal interests throughout history, examining figures from Lincoln to Trump. The conversation critiqued market myths and emphasized the need for government intervention in economic fairness, while also reflecting on the complexities of globalization and shifting political ideologies.
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Essential Government Functions
- Government serves three essential functions: supporting markets, protecting people from market failures, and providing a safety net.
- These functions address the shortcomings of pure market systems and ensure basic welfare.
Market Failure and Discrimination
- Markets often fail to address social issues like racial discrimination.
- Government intervention, such as the Civil Rights Act, is needed to correct these failures.
Hamilton vs. Jefferson
- Alexander Hamilton advocated for a strong central government to promote economic growth.
- This contrasted with Thomas Jefferson's preference for a decentralized, agrarian economy.

