Dispatches from China

Bailouts blur the line between capitalism and socialism

Deng Xiaoping, the pragmatic visionary who followed Mao, used the phrase, “One Country, Two Systems,” to describe socialist China’s decision to use capitalistic economics.

Since that point, 30 years ago, the difference between the political ideologies and economic policies pursued in the East and the West have become less distinct.

Today, as China deregulates its banks and spins off its state-owned enterprises (SOEs), the United States is nationalizing its banks and bailing out private enterprises.

Some in the United States (mostly, it seems, those who were part of the sequence of events that created the problem) argue that drastic times require drastic measures.

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