Posts tagged with: european union

Over at the National Catholic Reporter, Michael Sean Winters makes some comments about my book Becoming Europe based on a review he had read by Fr. C.J. McCloskey. Here are the most pertinent of his observations:

I know that American exceptionalism lives on both the left and the right, but when did the right become so Europhobic? And why? National Catholic Register has a review of a new book by the Acton Institute’s Samuel Gregg entitled Becoming Europe: Economic Decline, Culture, & How America Can Avoid a European Future. I confess, come August, when Europeans sensibly take the month off and head to the beach or the mountains for time with their families, I am envious of them, not scornful. When I look at Europe’s lower rates of income inequality, I am envious, not scornful. When I look at the creative ways Germany minimized unemployment during the recent economic downturn, I was deeply envious.

Of course, given the fact that Gregg works for the libertarian Acton Institute, where the false god of the market is worshipped day in and day out, it should not surprise that he misses the Catholic and Christian roots of the modern social welfare state as it exists in Europe.  And the fact that Rev. C. John McCloskey misunderstands the Christian roots of the modern social welfare state shows the degree to which some members of the Catholic clergy have bought into what can best be described as the Glenn Beck narrative of the relationship of faith and culture.

Alas, Mr. Winters apparently hasn’t actually read the book. Because if he had, he would know that Becoming Europe (1) notes several good economic things happening in Europe (such as in Germany and Sweden) and (2) addresses at considerable length the various Catholic and Christian contributions to the development of European welfare states and the European social model more generally. In the case of the latter, I’d direct his attention to Chapters 2 and 3 of Becoming Europe where these matters are discussed extensively. The point is that it is always prudent to perhaps read a book before venturing criticisms of its arguments.

Then there is the label of “libertarian.” Again, if Mr. Winters took a moment to read a few of my writings, he’d know that, in books such as On Ordered Liberty, I‘ve articulated critiques of libertarian thought, especially with regard to the way that libertarian thinkers approach, for instance, moral questions. Figures such as Friedrich Hayek, Ludwig von Mises, and Milton Friedman have many interesting economic insights. But I have always viewed their philosophical positions (which include, among others, commitments to nominalism, epicurism, utilitarianism, social-evolutionism, and social contractarianism) to be less-than-adequate. In many ways, their conceptions of the human person are virtually indistinguishable from modern liberals such as John Rawls. (more…)

More interesting archival video and quotes here, including:

“No one would have remembered the Good Samaritan if he’d only had good intentions. He had money as well” — Television interview, 1980.

Last night on Real News on The Blaze TV, Acton Institute Director of Research Samuel Gregg joined the panel to add his analysis of the current financial crisis in the nation of Cyprus, and the potential impacts that this crisis could have for other European Union nations that are currently trying to deal with financial issues of their own.

Gregg deals extensively with the problems of Europe in his book Becoming Europe: Economic Decline, Culture, and How America Can Avoid a European Future, which is well worth your time, and you can check out his appearance on the Library of Law and Liberty Podcast as well on the same topic. His Blaze TV interview is below.

Writing in The Guardian, historian Peter Frankopan looks at how the Byzantine Empire, which had “the distinction of being one of the very few realms to survive for more than a millennium,” might offer clues to a way out of the current Eurozone crisis.

Frankopan, author of The First Crusade: The Call from the East, notes that “like the EU, the Byzantine empire was a multilingual, multi-ethnic commonwealth that spread across different climates and varied local economies, ranging from bustling cities to market towns, from thriving ports to small rural settlements. Not only that, but it also had a single currency – one, furthermore, that did not fluctuate in value for centuries.”

More on the history of the Byzantine gold coin known as the solidus or, in Greek the nomisma, here.

Frankopan asserts that government in Byzantium was “lean, simple and efficient.”

If Eurocrats could learn from the structure of the empire, then so too could they benefit from looking at how it dealt with a chronic recession, brought on by the same deadly combination that has crippled western economies today. In the 1070s, government revenues collapsed, while expenditure continued to rise on essential services (such as the military); these were made worse by a chronic liquidity crisis. So bad did the situation become that the doors of the treasury were flung open: there was no point locking them, wrote one contemporary, because there was nothing there to steal. (more…)

In the Washington Times, Nile Gardiner praises Becoming Europe: Economic Decline, Culture, and How America Can Avoid a European Future, the new book by Acton Research Director Samuel Gregg. Gardiner, the director of the Margaret Thatcher Center for Freedom at The Heritage Foundation and a Washington-based foreign affairs analyst for The Telegraph, says Becoming Europe “should be on the desk of every member of the House and Senate who cares about the future of America as a prosperous and free nation.” Gardiner recommends the book for its “rich detail describing the economic and social ‘Europeanization’ of America, from the rise of vast welfare systems to growing skepticism of the merits of the free-enterprise system.” Excerpt from the review:

“Becoming Europe” is a meticulously researched and well-argued thesis that lays out what is at stake for the world’s superpower, as it faces a stark choice between European-style decline or a return to the original vision of America’s Founding Fathers, as well as the classical liberal teachings of Alexis de Tocqueville, Friedrich von Hayek and Adam Smith. Mr. Gregg, who is director of research at the Acton Institute, paints a grim picture of the direction America is taking but, nevertheless, conveys a positive message to his readers. Mr. Gregg argues that while America is indeed on the path to the European model, it can still turn back and avoid the fate that Europe looks doomed to suffer. In many respects, this is an optimistic book based upon faith in America’s ability to renew itself through rediscovering the principles of economic liberty.

I agree with Mr. Gregg’s assessment. As Gallup polling consistently shows, America is still at its core a conservative nation, one that cherishes the foundations of individual liberty. The fire of freedom still burns brighter on this side of the Atlantic than it does in the Old World, where the suffocating supranationalism of the European Union marches on, with the EU heading toward ever-greater political and economic centralization. The European nightmare can be avoided here, however, only if America’s leaders, at both a national and state level, are willing to stand up for economic freedom and reject the destructive ideology of big government. Washington is already on the path to Brussels, Paris and Athens, but it still has an opportunity to reverse course and avoid the road to economic ruin.

Read Nile Gardiner’s full review of Becoming Europe in the Washington Times.

Writing on The Corner over at National Review Online, Acton Research Director Samuel Gregg points to the election and, refreshingly, tells us that, “I’m not one of those who, in recent days, have seemed inclined to indulge their inner curmudgeon, apparently convinced that it’s more or less game-over for America and we’re doomed to Euro-serfdom.”

Gregg, author of the soon-to-be-released and available for pre-order Becoming Europe: Economic Decline, Culture, and How America Can Avoid a European Future (Encounter Books, January 2013), explains why there are, still, important differences between Eurotopia and the United States. For one thing:

… the strength and persistence of private entrepreneurship continues to substantially differentiate America’s economic culture from that of Europe. America remains ahead — and, in some areas, continues to pull ahead — of most of Europe when it comes to private innovation. As noted in a World Bank report earlier this year, the elements that fuel innovation, such as ease in obtaining patents and availability of venture capital, continue (at least for now) to be far stronger in America than in most of Europe.

The same report specified that it is young firms driving innovative growth in America. Among America’s leading innovators in the Industrial R&D Investment Scoreboard, more than half were created after 1975. They include firms such as eBay, Microsoft, Cisco, Amgen, Oracle, Google, and of course Apple. By contrast, only one in five leading innovators in Europe is young. In America, young firms make up an incredible 35 percent of total research and development done by leading innovators. Their European counterparts account for a mere 7 percent in the old continent. That’s great news for America and a major headache for Europe over the long term.

Read “Are We all Europeans Now?” by Samuel Gregg on NRO.

Blog author: dpahman
Friday, October 19, 2012
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Working Paper: “The Eurozone Debt Crisis — The Options Now
Buchheit, Lee C. and Gulati, G. Mitu
SSRN Working Papers, October 8, 2012

The Eurozone debt crisis is entering its third year. The original objective of the official sector’s response to the crisis — containment — has failed. All of the countries of peripheral Europe are now in play; three of them (Greece, Ireland and Portugal) operate under full official sector bailout programs.

The prospect of the crisis engulfing the larger peripheral countries, Spain and Italy, has sparked a new round of official sector containment measures. These will involve active intervention by official sector players such as the European Central Bank in order to preserve market access for the affected countries.

This paper surveys the options now facing the sovereign debtors and their official sector sponsors. It concludes that there are no painless or riskless options. In the end, the question may come down to this — to what extent will the official sector sponsors of peripheral Europe be prepared to take on their own shoulders (and off of the shoulders of private sector lenders) a significant portion of the debt stocks of these countries during this period of fiscal adjustment? (more…)

Alan Duncan, an aid minister in the UK, says his government is “forced” to hand over large amounts of money to the EU’s foreign aid budget, but has no say in how the money is spent. The problem is that much of the $2 billion+ “aid” money (one-sixth of the British budget) goes to projects such as making a Moroccan water park more eco-friendly, an art project in St. Petersburg, and building a hotel and leisure complex in Barbados. Britain’s International Development Committee reports that only 46% of the “development” donations go to “low-income” nations.

Some are urging that the British government “redefine their official development assistance (ODA), through which the relevant EU aid is spent“, with the British Development Committee warning that the situation will “devalue” the concept of aid in the eyes of its citizens.

Oxfam policy adviser Claire Godfrey stated, “If aid is not about helping the poorest then it is not worthy of the name.” Peter Bone, a Tory, had this to say about the money given to wealthier nations:

The Government has been saying for the past two years that this money’s been spent brilliantly. Alan Duncan is right to say the money is being wasted, but wrong to say there’s nothing we can do about it. There is: all you have to do is stop paying the money. It’s no good just crying crocodile tears about wasted money. If we stop paying, what will the EU do: sue us for not funding water parks in Morocco? Come on!

It is good to recall what Robert Woodson, a poverty activist in the U.S. has said about this type of situation:

There is a poverty industrial complex. You’ve got huge numbers of people who profit off our differences. You see, if you are problem oriented, you can write about the problem, you can lecture about the problem, you can consult on the problem. You can do everything but solve the problem.

Clearly, some in the British government are becoming aware of the fact that transparency, accountability, and outcome are absolute necessities in foreign aid and transferring money from one government to another. It remains to be seen if the UK government will take action, or will write, lecture and consult.

Read “EU Squanders Our Aid Millions” and “Most EU aid ‘goes to richer nations‘ “.

This article is cross-posted at PovertyCure.org.

In his essay on the eurozone crisis Estonian President Toomas Hendrik Ilves claims there is a misunderstanding about the nature of criticism by “populists”:

That I submit is a problem, a serious problem and a threat to Europe we have only begun to realize. When we still talk about new and old members, we still talk nonsense about “populism” in all the wrong ways. Indeed I believe that the “populism” and the “specter of the 30s” that all kinds of pundits unknowledgeably appeal to has nothing to do with the populism we see in Northern Europe. That is not a populism of the dispossessed, the unemployed. It is a populism more akin to what Calvin and Luther appealed to than what the fascists of the 1930s appealed to. It is, like most populism, based on resentment, and resentment at unfairness. But the unfairness is, as it was in the 16th Century, a resentment of those who flaunt their flouting the rules by which others abide. Resentment on the part of those who take commitments seriously regarding those who do not: Is that the “specter of the 30s”?

As Mark Movsesian of the Center of Law and Religion notes, this isn’t merely a divide between Protestants and Catholic worldviews since some fiscally responsible countries that Ilves praises, like Austria and Poland, are historically Catholic. “Still, one can’t help noticing,” says Movsesian, “that the ‘frugal’ countries happen to be mostly northern and historically Protestant, and the ‘profligate’ countries tend to be southern and historically Catholic (or Orthodox).”

(Via: First Things)

How about a tax on fires?

On National Review Online, Acton Research Director Samuel Gregg examines the push for a “transaction tax” to solve some of the fiscal problems in the European Union. The move would, Gregg explains, “levy a tax on any transaction on financial instruments (securities, loans, deposits, derivatives, and various asset classes) between banks, hedge funds, insurance businesses, investment companies, and other financial organizations whenever one contracting party is located in the EU.” That may not sound like much, but would apply to literally millions of financial transactions daily. The scheme has drawn the support of “EU apparatchiks” but the opposition of the British who see the tax proposal as a threat to London’s financial competitiveness. Gregg sees what’s behind it:

In short, the EU’s transactions-tax scheme reflects a long-standing desire to “throw sand” in the wheels of financial globalization. Its origins lie in what’s called the “Tobin tax,” named after the American economist James Tobin, who argued in 1972 for the levying of a 0.5 percent tax on all spot-currency conversions. The point, for Tobin, was to discourage “speculators” who “invest their money in foreign exchange on a very short-term basis.”

Unfortunately for its advocates, there’s considerable evidence that Tobin-like taxes on financial transactions don’t reduce volatility. In the midst of financial crises, long-term and short-term investors behave in very much the same way — they get out, and transaction taxes don’t prevent them from abandoning ship. Greece, for example, currently applies a transaction tax to the sale of Greek-listed shares. That, however, isn’t doing much to prevent the present exodus of capital from Greece.

Taking the broader view, it’s hard to avoid concluding this latest EU harmonization boondoggle is about two things. First, it’s a way for EU officials and governments to appear to be punishing European financial institutions for their contributions to Europe’s economic crisis. Second, it reflects the general European failure to come to grips with some of the deeper problems contributing to Europe’s debt crisis.

Read “Financial Fiddling while the Euro Burns” by Samuel Gregg on NRO.