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The Progressive Legacy and the Public Corporation: Entrepreneurship and Public Virtue

Published online by Cambridge University Press:  14 October 2011

Susan Tenenbaum
Affiliation:
Baruch College, CUNY

Extract

Since its first widespread use during World War I, the public corporation has figured prominently as an instrument of government on the federal and state level. Its policy domain has progressively expanded from wartime financing and procurement to broadly defined developmental, lending, and investment activities. Functioning outside the regular structure of the executive branch, the public corporation operates as a separate legal entity invested with independent borrowing authority and the power to retain earnings derived from its activities. The institution's proliferating presence on the political landscape reflects the continuing appeal of its hybrid form, designed to wed market efficiency to the pursuit of public purposes.

Type
Articles
Copyright
Copyright © The Pennsylvania State University, University Park, PA. 1991

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References

Notes

1. The most comprehensive historical and institutional examination of the public corporation is Annmarie Walsh's The Public's Business (Cambridge, Mass., 1978).Google Scholar

2. In his important essay, The Discovery that Business Corrupts Politics,” American Historical Review 86 (1981): 247–74CrossRefGoogle Scholar, McCormick, Richard argues for greater attention to the moral dimension of Progressivism, which has been obscured by “organizational” interpretations led by Hayes, Samuel, The Response to Industrialism (1957)Google Scholar, Wiebe, Robert, The Search for Order (1967)Google Scholar, and Galambos, Louis, The Public Image of Big Business in America, 1880–1940 (1975).Google Scholar On the importance of the moral dimension, see Sealander, Judith, Grand Plans (Lexington, Ky., 1988), 910.Google Scholar

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29. I am indebted to an anonymous reader of this essay for the term “corporate humanism.”

30. For a brief history of the public corporation, see Abel, Albert, “The Public Corporation in America,” in Friedmann, W. G. and Garner, J. F., eds., Government Enterprise: A Comparative Study (New York, 1970), 181200.Google Scholar

31. Quoted in Haber, Efficiency and Uplift, 47.

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36. 47 ICC, 732–34. Quoted in Baird, The Port of New York Authority, 23. Italics added.

37. Baird, The Port of New York Authority, 329. For a critical analysis of the Port Authority's operations, see Walsh, The Public's Business, 89–103. Italics added.

38. Representative George Huddleston (Alabama), Cong. Rec., 67 Cong., 2d sess., 2979. Quoted in Hubbard, Preston, Origins of the TVA (Nashville, 1961).Google Scholar

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40. See Hays, Samuel P., Conservation and the Gospel of Efficiency (Cambridge, Mass., 1959).Google Scholar

41. Quoted in McCraw, Thomas, TVA and the Power Fight 1933–1939 (Philadelphia, 1971), 33.Google Scholar

42. Quoted in McCraw, TVA and the Power Fight, 41.

43. Lilienthal, David, TVA: Democracy on the March (Westport: Conn., 1977).Google Scholar For critical assessments of the TVA's performance, see Selznick, Philip, TVA and the Grass Roots (New York, 1966)Google Scholar, and Callahan, North, TVA: Bridge over Troubled Waters (S. Brunswick, N.J., 1980).Google Scholar

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46. On this, see Staniland, Martin, What is Political Economy? (New Haven, 1987).Google ScholarMyrdal, Gunnar, The Political Element in the Development of Economic Theory (New York, 1954), chaps. 1–2.Google Scholar

47. Walsh, The Public's Business, 341.

48. Ibid., chap. 12.

49. See also Henriques, Diana, The Machinery of Greed: Public Authority Abuse and What to Do About It (Lexington, Mass., 1986). For a critique of Walsh that focuses on the concept of leadership, see Jameson Doig, “If I See a Murderous Fellow Sharpening a Knife Cleaverly: The Wilsonian Dichotomy and the Public Authority Tradition,” in Rabin and Bowman, Politics and Administration, 175–99.Google Scholar

50. See, for example, Thompson, Dennis, The Private Exercise of Public Functions (Port Washington, N.Y., 1985).Google Scholar

51. See Walsh, The Public's Business, 29–33. For an earlier attack on the public corporation from a market-oriented perspective, see Keezer, D. and May, S., The Public Control of Business (New York, 1930).Google Scholar

52. For a thorough exposition of this approach, see Wagner, Richard, Public Finance (Boston, 1983), parts I and II.Google Scholar See also Rees, Ray, Public Enterprise Economics (New York, 1984)Google Scholar, and Marchand, Maurice et al., The Performance of Public Enterprises: Concepts and Measurement (New York, 1984).Google Scholar

53. The sale of Conrail is a leading example of policy informed by this perspective.

54. For a discussion of this view, see Melvin Richter, Political Theory and Political Education, 2–56.

55. Taylor, Charles, The Explanation of Behavior (New York, 1964).Google Scholar

56. Sen, Amartya, Collective Choice and Social Welfare (New York, 1970).Google Scholar

57. Michael Walzer, “Political Decisionmaking and Political Education,” in Richter, Political Theory and Political Education, 159–76.

58. Flathman, Richard, The Public Interest (New York, 1966).Google Scholar

59. Ibid., 13.

60. Walzer, “Political Decisionmaking,” 173.

61. Huxtable, Ada Louise, Kicked a Building Lately? (New York, 1976).Google Scholar

62. Interview with Cooper, Alexander in Diamonstien, Barbaralee, American Architecture Now, vol. 2 (New York, 1985), 58.Google Scholar

63. Ibid., 58.

64. Ibid.

65. Interview with Frucher, Meyer, New York Magazine, 16 June 1985, 41.Google Scholar

66. Rawls, John, A Theory of Justice (Cambridge, Mass., 1971).Google Scholar

67. For a wide-ranging discussion of this perspective on community, see Jencks, Charles, Modem Movements in Architecture (New York, 1973).Google Scholar

68. See, for example, Jacobs, Jane, The Life and Death of Great American Cities (New York, 1963).Google Scholar

69. See Miller, David, Social Justice (Oxford, 1976)Google Scholar, chap. 4, and Braybrooke, David, Meeting Needs (Princeton, 1987).CrossRefGoogle Scholar