Politics: The Basics, 4th Edition

informally through families and social networks. In political argu-
ment this choice of social decision-making mechanisms is often
debated in terms of simple dichotomies (Box 8.1), in other cases it
may be taken for granted that one mechanism is the appropriate one.

BOX 8.1 CHOICE OF SOCIAL DECISION-MAKING

MECHANISM

The approach we have adopted here suggests, rather, a more prag-
matic approach where it is appropriate to consider the issue, the time
and the place before deciding upon which way social decisions should
be resolved. In addition to a pure market or a state system, it is clear
that a mixed system in which the market is regulated and adjusted by
the state (the so-called ‘social market’) is often a viable alternative to
consider. This alternative combines a free market in consumer goods
with a commitment to social objectives, such as equality of oppor-
tunity, and political measures to prevent the undue dominance of
elites. Nor should the role of voluntary co-operation through family
and neighbourhood networks or more formal organisations be
neglected.
In deciding the appropriate role of the state, important con-
siderations are: how far it is likely to reach a more rational decision
than the market; how far it can effectively involve ordinary citizens
in the decision-making process; and whether the increased costs of
such decision making seem justified by any improvement in its
quality.

POLICIES 211

From the right:

Individual freedom = Consumer sovereignty = Good

versus

State decision making = bureaucracy = bad

From the left:

Social decision making by welfare state = democracy = good

versus

Market decision making = capitalism = exploitation = bad