Is Democracy Bad For Growth?

The time was July, 1959, and the place was the American exhibit in Moscow. Against a background of kitchen cabinets, U.S. Vice-President Richard Nixon and Soviet First Secretary Nikita Khrushchev sparred. Nixon extolled the prosperity that capitalism had brought to Americans and the freedom of choice and liberties that democracy gave them. Khrushchev retorted that socialist workers were happy and had everything they needed. Besides, he thundered, in seven years we shall surpass you.

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