A commenter on this post writes,
corporatism is the only game in town (http://stumblingandmumbling.typepad.com/stumbling_and_mumbling/2012/07/crony-capitalism-the-only-capitalism.html). The question then is what KIND of corporatism?
Libertarians who say that regulation = corporatism and who shrink back from any effort to regulate end up de facto enablers for the worst kind of corporatism from a progressive POV: the kind that makes the public in public/private partnership the junior partner.
I believe that you get the benefit of markets when businesses are allowed to fail. The worst evil of corporatism is its protection of incumbent businesses. What disturbs me about the progressive vision is that it seems to involve regulation of a static business environment rather than encouragement of a dynamic market with creative destruction.