Public sector plays crucial role in maintaining stability from "summary" of The New Industrial State by John Kenneth Galbraith
The stability of a modern industrial society depends to a substantial extent on the actions of the public sector. This is because the public sector has the ability to counteract the inherent instability that arises from the private sector's pursuit of profits. In a capitalist economy, the private sector is driven by the profit motive, which often leads to behaviors that can destabilize the economy. For example, businesses may engage in excessive speculation, overproduction, or aggressive marketing tactics that can create booms and busts in the economy. The public sector, on the other hand, is not motivated by profit but by the public interest. It has the power to regulate and moderate the excesses of the private sector in order to maintain stability in the economy. This is particularly important in industries that are dominated by large corporations, as these corporations have the ability to influence market conditions and prices to their advantage. Without the intervention of the public sector, these corporations could potentially exploit their market power to the detriment of cons...
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