Capitalism/Plain or State

After the cold war, a larger conflict began that left the world divided in two camps -- one that believed in democratic capitalism and the other in state capitalism, writes David Brooks. People engaged in democratic capitalism believe that businesses create wealth and raise living standards while governments regulate when necessary. Government officials such as President Obama and private-sector workers such as BP executives fall into this camp. Under state capitalism, as in Iran and China, companies create wealth for the political cliques and have the backing of the state. With this advantage, state energy companies have been crushing the private-sector energy companies. Even as Obama and BP squabble, they should keep an eye on the bigger picture: people need healthy private energy companies; it is crucial to move from oil and gas that have financed the rise of aggressive state capitalism.