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This is a detailed examination of the significant US legislative and executive policy decisions that have transformed the economic role of the state since the 1970s. It sets out to show that institutional biases in existing state and party structures and dominant economic ideology have favoured, on a selective basis, pro-capital-accumulation strategies while presenting numerous barriers to interventionist or redistributive alternatives. The author argues that the current hegemony of free-market policy was nevertheless not inevitable, but a result of the active political mobilization of corporate and conservative interests to counter liberal initiatives and shape public-policy discourse in a way that identified their own preferences with public interest. The book traces the politics of economic-policy formation from the Humphrey-Hawkins full-employment bill of the 1970s to the initiatives of the Clinton administration.