Category Archives: Economics

The EU Monetary Union

Is it on the verge of collapse?

Something profound has changed. Germans have begun to sense that the preservation of their own democracy and rule of law is in conflict with demands from Europe. They must choose one or the other.

Yet Europe and the world are so used to German self-abnegation for the EU Project – so used to the teleological destiny of ever-closer Union – that they cannot seem to grasp the fact. It reminds me of 1989 and the establishment failure to understand the Soviet game was up.

Go long on the Deutschemark.

Tom Friedman’s Latest Book

Andrew Ferguson reviews it:

The slovenliness of our language, George Orwell wrote, makes it easier to have foolish thoughts, and while Mr. Friedman’s language has been tidied up a bit, the thinking remains what it has always been. The authors call themselves “frustrated optimists.” Their frustration is owing to the depredations of the last decade, which they call (Mr. Mandelbaum nods) the Terrible Twos. But self-contradiction is also part of the Friedman brand. In many other passages, the authors specifically trace the American slide to the end of the Cold War—though still elsewhere they remark that the 1990s were “positive for America.” It doesn’t help their argument, such as it is, that the evidence of decline they cite—crumbling infrastructure, a failing public-education system—predates both 2001 and 1989 by a long stretch. Our potholes and schools have been favorites of declinists for generations.

If the authors’ frustration is unoriginal and ill-defined, their optimism is terrifying. America will rebound—we will become the us that we used to be again, you might say and Mr. Friedman does—when we regain our ability to do “big things” through “collective action.” Collective action is a phrase that means “the federal government.” Among the big things that we will do are rework American industry, through regulation and taxation, to drastically cut carbon emissions. Another one of our big things is a big increase in the gasoline tax. We will also impose on us a new big carbon tax. We will use revenues to create a “clean energy” industry with millions of “green jobs” like the ones that were eliminated earlier this month at Solyndra. Readers will wonder, like the early environmentalist Tonto, “What do you mean ‘we,’ kemo sabe?”

Go read the whole thing. You know you want to.

Less Government

more jobs.

Speaking of which:

The Environmental Protection Agency has said new greenhouse gas regulations, as proposed, may be “absurd” in application and “impossible to administer” by its self-imposed 2016 deadline. But the agency is still asking for taxpayers to shoulder the burden of up to 230,000 new bureaucrats — at a cost of $21 billion — to attempt to implement the rules.

Gee, I can think of a way to save the taxpayers $21B. And millions of jobs.

The Good Life

Why does it end?

When poverty is defined as relative want rather than existential need, states decay and societies decline. In the fifth century, Athenians were content to be paid to go to the theater; by the fourth, they were paid also to vote — even as they hired mercenaries to fight and forgot who won at Salamis, and why. Flash mobbing did not hit bulk food stores. The looters organized on Facebook through laptops and cell phones, not through organizing during soup kitchens and bread lines. Random assaults were not because of elemental poverty, but anger at not having exactly what appears on TV.

Obesity, not malnutrition, is the affliction at Wal-Mart. In our strange culture, that someone drives an overpriced BMW apparently means that our own Toyotas don’t have air conditioners or stereos. But that John Edwards or John Kerry or Al Gore has a huge house doesn’t mean that mine is inadequate — or the tract homes that sprout in my community for new arrivals from Mexico are too small.

Of course, the elite have responsibility to use their largess wisely and not turn into the Kardashians. But that a fifth of one percent of the taxpayers are finding ways not to pay at the income tax rate on their large incomes does not hurt the republic as much as 50% of the population paying no income tax at all. The latter noble sorts do not bother us as much, but their noncompliance bothers the foundations of our society far more than that of the stingy, but minuscule, number of grasping rich.

Yup.