Although the government role in the economy has extended to include various sectors of the economy, there are still problems of the causes of government involvement and how such involvement is related to the structure and function of the industrial government. The purpose of this study is to test the government involvement phenomenon both theoretically and empirically. The study compares two approaches to the government theories. The first approach deals with theories of capitalism and focuses on the function of the government methods as they are observed. The second approach deals with theories of the capitalist government and focuses on the functions and the form of the government as deducted from the historical analysis.