PRIVATE ENTERPRISE AND PUBLIC INTEREST. THE DEVELOPMENT OF AMERICAN CAPITALISM.

By GordonC. Bjork '57. Englewood Cliffs: Prentice-Hall Inc., 1969. 243 pp. Cloth $7.50.Paperback $3.95.

The central thesis of Mr. Bjork's book is that private property and economic freedom - the basic institutions of capitalism - are to be judged not in historical or metaphysical terms but on the basis of their utility in leading to "socially acceptable results." To this end, and in the light of changing conditions, the two institutions must be subject to more or less constant reappraisal and, what is more, they should be altered when it is found desirable. They must not be shielded against change by any doctrine of natural rights.

But Private Enterprise and Public Interest is much broader in scope than the preceding remarks might suggest. The book contains an excellent historical account of the changing attitude toward property; it deals, again historically, with the issue of economic freedom, particularly with reference to exchange transactions; it presents an analysis of the American economy, including a discussion of various social controls that have been introduced; it takes up certain parts of Marxian doctrine and, interestingly enough, the author makes extensive use of the notion of a "surplus." For so young a scholar (in his early thirties, and now President of Linfield College), Mr. Bjork exhibits wide learning and keen analytical ability.

The author raises some highly important issues, one or two of which may be noted While sympathetic to the Keynesian goal of full employment, he points to the need for giving attention not only to aggregate production but to "the question of production of what and for whom." If the latter aspect of the problem is to be adequately handled, further social control is obviously necessary. The author believes that this control can be exercised without undermining the capitalistic system.

A specific policy recommendation relatesto a further redistribution of incomes. It is here that the surplus (or rent) concept is brought into use. Mr. Bjork applies the concept to all factors of production. Anyamount in excess of what is needed to ensure the employment of the factors constitutes a surplus, and this could be safelytaken over by society and put to worthysocial ends. The author does not go into thetricky question of the actual measurementof the immense number of individual surpluses that would be involved.

Mr. Bjork's book on American capitalismis both informative and provocative. In ourefforts to make our economic system betterserve the public interest it is well to havesuch a probing inquiry before us.

Mr. Dankert is Professor of Economics,Emeritus, Dartmouth College.