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Anatole Kaletsky’s intriguing cover story about the next phase of capitalism contends that the state will both advance (in finance and macro-economics) and retreat (in health, education and pensions). With even a Tory government planning new levies on the banking sector, the first part of the equation seems uncontroversial. The second part of the thesis is based on two different claims. The first is that modern electorates are suspicious of both too much market and too much state, so if the latter is advancing…

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