Market-State Relations in John Maurice Clark’s Social Economics
As one of the leading institutional economists between the Great Depression and the 1960s in the United States, John Maurice Clark (1884-1963) synthesizes neoclassical economic analysis with the institutionalist framework by developing a new approach to business competition and offered a new understanding of the market-state (economics-politics) relations. What is missing in the current literature on Clark is how he conceives of the market and the role the state plays in governing it. Based on his key publications, the main argument in this essay is that John Maurice Clark puts forward a new vision of business competition – effective competition – that needs a specific kind of state to establish and maintain effective competition, essential for reaping the benefits of the free market economy. This new vision attributes a crucial role to law and suggests de-politicization of public policy making with the technocratic decision.
Key Terms - Effective Competition, Business Enterprise, Market, Economics, State, Politics, Law