A professor of history and international affairs at Princeton University, Harold James, makes the point that government spending and power fuels inequality:
what is fueling inequality now is not unfettered capitalism, but problematic public-policy efforts to stabilize economies in the wake of the financial crisis. Capitalist competition erodes monopoly profits, whereas public policy risks creating entrenched privilege.
The liveliest example Professor James offers is that of China's high-speed rail system, often cited as a model by President Obama and Thomas Friedman: "The seamy side of China's post-crisis stimulus package was ventilated in the trial of Liu Zhijun, who oversaw the development of China's showcase high-speed rail network – a position that garnered him 374 properties, 16 cars, and 18 mistresses."
