Abstract
A quantum mechanical analysis of a two-level atom in a coherently driven optical cavity is shown to predict steady-state atomic population inversion. Semi-classically this is forbidden because of the factorization of operator-product expectation values. The full quantum theory is much richer and different field states may be correlated with different atomic states. One consequence is that damping of the cavity field allows atomic polarization to be transferred from higher to lower field states and thus steady-state inversion becomes possible.