In April this year, President Joe Biden’s national security adviser, Jake Sullivan, gave a speech outlining America’s major economic problems, and the administration’s plan to address them. The industrial base had been hollowed out, he said, and the country had become so unequal that it threatened the foundations of democracy. He identified “one assumption” that had fueled these transformations: the idea “that markets always allocated capital productively and efficiently—no matter what our competitors did, no matter how big our shared challenges grew, and no matter how many guardrails we took down.” Sullivan hastened to add that he was no foe of markets as such. But excessive faith in free m
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