From Gerard Baker of The Times, London:
The Anglo-Saxon economies, in response to their own economic crises of the 1970s, had prepared themselves for this new world with painful but necessary reforms.But Europe looked inward, not outward. Instead of focusing on what was needed – American and British-style labour reforms, tax cuts and deregulation — Europe embarked on a quix- otic exercise. It sought to weld a dozen or more disparate countries into an unbreakable economic union, all settled snug and warm under the fraying comfort blanket of expensive welfare systems.
The fact that a top German politician has resorted to attacking capitalism to win votes tells you just how explosive the next decade in Western Europe could be, as some of these aging, inflexible economies - which have grown used to six-week vacations and unemployment insurance that is almost as good as having a job - become more intimately integrated with Eastern Europe, India and China in a flattening world.I remember trying to explain "Europe" to an American friend....Yes, this is a bad time for France and friends to lose their appetite for hard work - just when India, China and Poland are rediscovering theirs.
"Europe is the world's most expensive luxury good," I said. "Every year it get a little more expensive, and nobody has any good ideas about how to make it cheaper."
Alternatively: http://afr.com/articles/2004/02/19/1077072774981.html
Posted by: Gideon at June 3, 2005 4:14 PMThomas Friedman wrote a fascinating Op-ed piece in the NY Times today about this very topic.
Posted by: Bob at June 3, 2005 8:03 PMThanks Bob- I just added it to the post.
Posted by: hugh macleod at June 3, 2005 8:59 PMWith several trips to Europe, business and vacations, and with "sometimes" business partner from Wien (Vienna), my conclusion is that Europe has become a "DisneyLand" with full time occupants. Maybe becoming "Disneyland" : the Old Folks Home.
Posted by: JTH at June 4, 2005 11:50 AMIt would be funny if it wasn't so sad.
German politicians (especially the mentioned ones) don't have a clue, nor do the voters.
Posted by: Ulrich Hobelmann at June 4, 2005 4:07 PMDear Hugh,
What is it you have against western europe?
Just curious, a dutchman.
Posted by: Kars at June 5, 2005 7:59 AMDear Hugh,
You seem to view Europe as quite negative, especially from an economic point of view. My question is, how come that Germany is the biggest exporters of goods in the worlds, not the (by GDP 5 times bigger) USA?
Seems to me that the European thing is not so bad, after all. And if you ask me which country in the world provides the best living conditions, I would still choose Germany. Even though 50% of my income go away for taxes, healthcare, etc., I can still live VERY well with it, even more so if compared to the wealth of people in other countries.
Not to say that Europe does not have some serious problems, but the economy is none of these. Unemployment is, but this is not so much related to productivity as before industrialisation.
Kind regards,
Kai Ruhl
Kai, if the high-unemployment model works for you, groovy.
It all depends what compromises a nation is willing to make.
Generally for most people, it is easier to live in denial than go through painful changes.
But I'm not sure you're doing your grandchildren any favors, either.
The US is adolescent: full of self-righteous, gimme-gimme energy, with little time for tradition. You run fast, and look impressive, but you neither know nor care where you are going.
Europe is older and wiser, and respects its own citizens and the rest of the world. We understand that progress takes time and care. While this approach may be expensive, its long term product is a stronger, healthier society.
Posted by: Ben at June 6, 2005 11:38 AMHugh,
You misunderstood me. I simply wanted to state that the assumption "Europe is going down" is flawed. Also, that the assumption "the anglo-saxon economic model or the current state therof is superiour" (due to its reformed state or other reasons) is flawed.
I mentioned the unemployment thing only to make the post a bit more balanced, it sounded a bit like "Euro-Troll" before. To reiterate: The economy is obviously doing fine in Europe.
Who or which country is doing its children a favor and which not is a question I cannot reasonably decide. Each of the modern industrial regions has its pros and cons, and only time will tell.
Kind regards,
Kai