Paul R. Gregory's writings on Russia, the world economy, and other matters that he finds of interest.
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Monday, October 3, 2011
State Capitalism, Hubris, And What China Owes Us
Times have changed. A decade back, the United States lectured the rest of the world on the advantages of democracy and its private enterprise system. Now, countries like China and Russia tout their “benevolent” one-party system and state capitalism as growth engines that correct the mistakes of the free market. Russia’s Putin characterizes the U.S. as a “parasite that lives off the global market.”
China, in a show of Schadenfreude, lectures us to get our economic house in order before we ruin everyone else. Domestic critics bemoan the pathologies of unfettered markets and political stalemate and point to China as a model for us.