Big business vs big government—A new social contract?

The author describes how the conflict between the two ideologies of liberalism and conservatism may be resolved to produce an economic system that increases both social welfare and entrepreneurial freedom. After summarizing the limitations of the left and right wing positions, he describes research studies on a ‘Return on Resources Model’ that suggest a third perspective called the ‘social contract’ which reconciles both views to create a more powerful synthesis. An intriguing possibility is that the social contract could produce a ‘decentralization strategy’ in which control of the economy would shift downward from government to a self-regulating and more productive private sector. Some speculations are offered on how these possibilities seem likely to unfold during the next decade or so, as well as suggestions on how politicians and corporate executives could foster this ‘New Capitalism’.