state intervention
...l; and 3. Jeopardy: Any attempt at changing the social or economic order will carry with it costs that are so high as to jeopardise what has previously been achieved. The extent and size of a firm is a result of competitive powers - which are industry- and product-specific - on the underlying trade-off of increasing and decreasing returns to scale. Similarly, the extent and activity of the State, ‘The Optimal State’, should mirror the irony that having united in order to exploit the synergies and economies of scope which result from the variety and activity of Mankind, the potentially perverse effect of producing uniformity and inertness is likely to occur. This uniformity and inertness threatens the variety and activity as the initial purpose of the establishment of the State was to foment and exploit in the first place. The concept of organizational capabilities, as Reinert puts forward, is an answer to the diseconomies of scale produced by size angrowth complexities. In the business world, the Managerial R...