This essay explores the somewhat uneven course of the public library as a knowledge institution in America and its relevance during the current information age, particularly in the United States, where there is a basic connection between access to knowledge and the political system. The public library situation is considered in terms of the dichotomy of consumption, (i.e., the assumption that services to the poor are in themselves a public good and should be provided to alleviate personal need), and investment (i.e., the assumption that the use of services provided to the poor will ultimately result in productive contributions to society). The history of access to information in public libraries is traced from the mid-nineteenth century to the present, and it is argued that the move from "knowledge" to "information" has been promoted by the business sector because substantial gains have been realized as a result of capitalizing on knowledge. This move from knowledge to information is seen as a threat to public institutions, particularly to public schools and libraries. In conclusion, it is argued that management policies of non-profit institutions and for-profit institutions should be different since technocratic systems are usually measured by tests of efficiency and effectiveness, whereas libraries should be concerned with accountability and legitimacy as they focus on the labor-intensive process of the inculcation of knowledge. (34 references) (SD)