Business: A SOCIETY TRANSFORMED BY INDUSTRY

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other institutions. "The institutions are being challenged, and rightly so," he says. "We'll have to spend more on our public institutions, even if it means overheating the economy and even if our national income doesn't justify the expenditures."

If the government fails to meet the needs, he fears that voters may turn to the extreme left or right. Italian industry has had a renaissance because competition has forced it to look outward and adopt imaginative methods—and Agnelli believes that there is a lesson here for the government. "The trouble is that we compete with Detroit," he says, "but Rome doesn't have to compete with Washington." Industry has finally given Italy a modern economy. Now the job is to make the state and society fully modern too.

^{* Fiat appeared well after Germany's pioneering Daimler-Benz (1885) and other firms, but four years before Ford.}