The US passes through periods of intense regulatory activity and periods of deliberate regulatory neglect. There’s a broad sense that the nation’s current economic woes could have been avoided had the SEC and other regulatory bodies taken a more active approach to regulating major financial instituitions. But there’s also a long-standing and widespread sense that the government should keep its mitts off, as manifested, for example, in the current health care debate. These two orientations seem to play off against one another over time and even at the same time. Or so it seems to me, though “the politics of regulation” would not be one of my preferred “Jeopardy!” categories.
The foregoing is by way of introduction to a fascinating piece by Sharon LaFraniere in today’s New York Times on the phase through which China now seems to be passing. I know about as much about China as I do about regulatory politics (i.e., very little in either case), so my purpose here is just to call the article to your attention in case you haven’t already seen it. Any reactions from those who know more about these matters than I do?