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Although the concept of the public interest has a long history, it remains one of the most often used yet illdefined concepts in public discourse. The difficulty in specifying the public interest parallels the similar problems the literature has had in clearly distinguishing consequence, and affect the community at large. When, therefore, one devotes his property to a use in which the public has an interest, he, in effect, grants to the public an interest in that use, and must submit to be controlled by the public for the common good, to the extent of the interest he has thus created.” The difficulty of decoding such language, making it more operational than hortatory, is evident.

Eventually, the Court decreed, in Nebbia v. New York, 291 U.S. 502 (1934), that “the phrase ‘affected with a public interest' can, in the nature of things, mean no more than that an industry, for adequate reason, is subject to control for the public good…. There can be no doubt that upon proper occasion and by appropriate measures the state may regulate a business in any of its aspects, including the prices to be charged for the products or commodities it sells.” In essence, the state, giving reasons, can regulate just about any aspect of business in the name of the public interest.

Debates of this sort are not by any means settled issues, even today. Recent cases over the ability of municipalities to condemn property under eminent domain for public purposes that involve the support of private business have been highly controversial. Indeed, they have led to proposals to change some state and local laws to enhance protection of private property against such public takings. Thus, what is covered by the “public interest” remains a prominent issue for practical analysis.

The Public Interest in Political Philosophy

There is no settled view of the concept in political philosophy, much less in the sphere of its practical application to economic activity. The literature contains a host of typologies—systematic sortings by dimensions claimed to extract important aspects of the concept—that purport to distinguish key alternative meanings of the concept. The types distinguished are sometimes little more than lists, and the labels given to the types can seem arcane and somewhat distant from practical application. Here are some prominent examples: In 1955, Edward Banfield found “unitary” meanings (distinguishing “organismic” from “communalist”) and “individualistic” approaches (distinguishing “utilitarian,” “quasi-utilitarian,” and “qualified individualistic”). In 1957, Frank Sorauf distinguished alternative meanings: as commonly held value, as wise or superior interest, as moral imperative, as balance of interests, or as vague, essentially undefined value. In 1959, W. A. R. Leys and C. M. Perry found both formal meanings (simple or pluralistic) and substantive meanings (utilitarian, procedural, or normative). In 1960, Glendon Schubert identified “rationalist,” “idealist,” and “realist” types. In her 1970 book, Virginia Held divided the theories of the public interest into “preponderance” theories, “common interest” theories, and “unitary” theories. In 1974, Clarke Cochran listed “normative,” “abolitionist,” “process,” and “consensualist” types.

These typologies seem bewildering in number, and though in their authors' discussion they provide numerous, valuable insights concerning subtleties in the meanings of the public interest, they are often not very systematic in construction. The Sorauf, Schubert, and Cochran typologies are lists with no structure; the others sort the concept with varying, often incomplete logics.

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