Critics of the military-industrial complex fret over the power of big corporations in ""the new industrial state"" but Dr. Weidenbaum, recently appointed Assistant Secretary of the Treasury for Economic Affairs, turns these arguments on their head to explore the adverse effects on private industry of governmental involvement and regulation. As the federal government takes on new functions (military preparation, scientific exploration, economic development, social welfare experimentation and amelioration) without having the facilities to execute policies and actually produce the public goods and services, private organizations are being oriented to serve governmental rather than private customers and clients. These changes in the structure and operations of the public sector influence the role of states and cities in the federal system and have a marked impact on other areas of the economy and society generally. Weidenbaum evaluates the economic and political implications of these trends, examines the complex array of relationships within the public sector and between the public and private sectors, and suggests that new institutional arrangements be developed to cope with changing societal needs. Though well organized, clearly written, and diligently documented, the book is more for professional than public consumption.