PRINCETON – The protracted financial and economic crisis discredited first the American model of capitalism, and then the European version. Now it looks as if the Asian approach may take some knocks, too. Coming after the failure of state socialism, does this mean that there is no correct way of organizing an economy?
In the aftermath of the subprime crisis and the collapse of Lehman Brothers, fingers were pointed at the United States as an example of how badly things could go wrong. The American model had supposedly failed, its reputation weakened first by the Iraq invasion, and then by the financial crisis. Anyone who dreamed of the American way of life now looked stupid.