The Chinese Model
A standard part of the laissez faire catechism is that democracy and free markets go together, hand in glove. This is bunk. Most populaces do not favor free market policies and for this reason there’s always been a strong anti-democratic streak in the thinking of people like Freidrich Hayek and their modern-day devotees. Today’s WSJ Econoblog has an interesting discussion about the relationship between democracy and growth and it prompts some economists to say the unsayable. Like: ” Some dictators are even better than democrats at restraining the growth-killing practice of expropriating private wealth.”
I know there’s a tacit assumption that the future belongs to free-market democracies, but I wonder sometimes if we’re going to see th exportation of the Chinese model of undemocratic capitalism.