"Two signal events in history are shaping the politics of the current economic crisis: the Great Depression and the Reagan presidency (and in Europe, Thatcherism).

The Depression put in motion an historic tension between public and private sectors over who sets a nation's course. After 50 years of public dominance, Reagan's presidency tipped the scales back toward private enterprise. The economic life of the ensuing 35 years became 'the American model.' Every waking hour of this economically liberal era, the losing side has wanted to tip the balance back toward public-sector power. The opportunity to achieve that goal finally arrived -- with the great recession of 2009. Thus rather than fixing just what the mortgage crisis broke, the G-20 suddenly became a meditation on the 'future of capitalism.'"

Read the rest of Daniel Henninger's piece at The Wall Street Journal.