Foucault is concerned with Governmentality. He believed that government should be primarily concerned with economy. He noted a link that the accumulation of capital and power are mutually dependent.

When Foucault speaks of the “governmentalization of the state” (1991a, p. 103), he does not assume that government is a technique, that could be applied or used by state authorities or apparatuses; instead he comprehends the state itself as a tactics of government, as a dynamic form and historic stabilisation of societal power relations. Thus, governmentality is “at once internal and external to the state, since it is the tactics of government which make possible the continual definition and redefinition of what is within the competence of the state and what is not, the public versus the private, and so on; thus the state can only be understood in its survival and its limits on the basis of the general tactics of governmentality” (1991a, p. 103).(paragraph quoted from Thomas Lemke)

In Panopticon offers particular instances of political technologies. In a generalization model that allows us to examine. How power is used relinquished and controlled. In Foucault’s model we all end up being watched so we are effectively controlled because we are seen. There is no supreme power only the system that sustains and control everybody within its.

In his examination of the state he choose to remove it’s head and see what happened as explained by Thomas Lemke
“But by rejecting the juridical model and adopting the opposite view, Foucault reversed it. Instead of cutting off the king’s head, he just turned the conception that he criticised upside down by replacing law and contract by war and conquest. Put differently, the “cutting off” could only be the first step. After this, it is necessary to address the following question: “How is it possible that his headless body often behaves as if it indeed had a head?” (Dean 1994, p. 156).

Normalization of the law:
Entry of medicine, psychiatry, and some science at the beginning the 19 century led to a normalization of law. What does Focault mean by this? With the increase in classification they were able to point out anomalies. Since anomalies were not the norm they were legislated against
In what he terms as bio-power this gave a use of power to people that controlled these mechanism. It links technologies of the self with technologies of domination, the constitution of the subject to the formation of the state; finally, it helps to differentiate between power and domination.

Foucault introduces a differentiation between power and domination which is only implicit in his earlier work. He insists that “we must distinguish the relationships of power as strategic games between liberties – strategic games that result in the fact that some people try to determine the conduct of others – and the states of domination, which are what we ordinarily call power. And, between the two, between the games of power and the states of domination, you have governmental technologies” (Foucault 1988b, p. 19). It follows that Foucault identifies three types of power relations: strategic games between liberties, government and domination.
Last paragraph quoted from Thomas Lemke
Summary
Foucault in the end comes to the point where he believes that none of these systems of power are particular good. He does not offer a clear solution but points to the evaluations. “maybe the target now days is not to discover what we are, but to refuse what we are. We have to imagine and to build up what we could be to get rid of a political “double bind” which is the simultaneous individualization and totalization of modern power structures.