The financial crisis has weakened confidence in market economies everywhere in the Western world. Not that the United States, let alone European countries, were ever wildly deregulated; but opponents of deregulation have grown more vocal. Rethinking Capitalism, edited by Michael Jacobs and Mariana Mazzucato, should actually be entitled “Rethinking Statism,” for it aims at providing interventionists with a bolder agenda than ever. Jacobs and Mazzucato basically equate limited government with a government that tries to correct market failure—an equation most libertarians would actually dispute. The failings of the world economies, whether before or after the financial crisis of late 2007 to…