Jeremy Rifkin on Europe's dream

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Source: NRC Handelsbland, 12th of March 2005, section Opinion and Debate, interview by Marc Leijendekker. Translation (back to) English by moi.

ML: "You speak, as an American, about the European Way, write about the European Dream. A lot of Europeans are actually confused about what their future will look like."

JR: "We're in between two historical sections of time, so Europe has doubts, as does the rest of the world. Our trusted way of life is turning ou to be problematic, and our ideologies are under stress. In Europe some people think the EU is a collection of old institutions which will soon be discarded, but there's a new reality growing underneath its skin. Maybe you don't see it, because you're too close to it. It's the strangest poltiical experiment in history, so it's logical that there's confusion."

ML:"You can see that in the debate about the constitution, you can see that people want to give Europe an impulse other than the loathing of bureacracy and policy at a distance."

JR: "Europe is at a turning point. The debate about the constitution is about whether or not Europe wants to mature. Kissinger's remark that no-one answers the phone when he calls Europe is well-know. But the interesting thing is that everyone picks up the phone, no nation or group is powerful enough to be the boss. That's a breach with the political idea of top down command and control."

ML: "Then what is that European Dream according to you?"

JR:"To answer that question I first have to look at the American Dream. That's what I grew up with. My parents told me: 'It's a rough nation, but if you get a good upbringing and work hard you can make your life a success'. That's what keeps America together, not the constitution, not Washington, not capitalism, but the dream. It's sink or swim, no-one will take care of me, not the government nor society. But if I work hard, can take care of myself and am mobile then I can make something of my life.
We Americans have a fundamentally different way of thinking than Europeans do - and it has nothing to do with Bush. For us, freedom means: being independent, being able to take care of yourself, not blaming others for things that go wrong. On the European continent freedom is embedded in quality of life, in the relations you have with others. No parent will tell his child that he's on his own, no-one will be aided by that.
The irony of it all is that the American dream comes from Europe. When the founders of the USA came to America twohundred years ago, Eyrope was in the last phase of the protestant reformation and the first phase of the enlightenment. Our founders took those things, and froze them. Martin Luther said: you are alone and naked in front of God, with no church or priest in the way. Adam Smith said that being selfish was good for the economy and John Locke said that you're all alone against the forces of nature. That's where the idea of the autonomous individual comes from. The cowboy, that's what we are. And if Martin Luther would return today he weould feel more at home in the heartland of America than in Europe.
In Europe the reformation and the enlightenment in their purest form could never have been entirely accepted. There was an older traditiotn: the paternalism of the catholic church and the feudal society. That's why the individualistic ethos reigns with us, and the market capitalism. You got the social economy.
Then what are the differences? In America it it's about gathering wealth, as a goal, not as a means to an end, something the Europeans often don't see. The reason Americans pay so much attention to wealth is that our parents taught us from our fourth year on that no-one will take care of us. In America you can get rich, that's a lot harder in Europe. You tax eachother, so that the whole society creates a situation to live a good life. The American dream also addresses workethics, productivity, efficiency. Doing nothing is being lazy, but every European I've met says that you have to work to live, not live to work. The American dream is about growth, the European dream about durable development: Kyoto, the treaty about biodiversity, taxin gasoline, saving energy. You live more crowded, we could just pollute our living space and move on. You had to live in the context you had.
The American dream is abuot ownership rights and civil rights that expand our individuality. I possess, so I am indeoendent. If I have the right to state my opinion and the right to bear arms, then I'm independent. In Europe there is almost no attention for ownership rights, a little bit of attention for civil rights, but there is a lot of attention for social rights: universal healthcare, pensions, parental leave. And you pay attention to universal human rights, almost no-one here does that, except for Jimmy Carter.
The American dream is very religious, the European dream is secular. The majority of the Americans is really religious, Europeans laugh about it, but it isn't a joke to us. The American dream is also very patriotic. Nationalism is seen as an old, dangerous idea from the 19th and early 20th century.
And then there's the army. Not that Europeans don't love their country, people say they're proud to be Dutch, but also that they're European. That identity is a lot more complex than the American identity. The American dream is closely linked to a strong army. It's our religiousness. Most Americans believe that God has chosen America as a promised land, that there really is evil in the world. They aren't metaphors, good and evil forces really exist. That's why you need a strong army. You can't beat the devil with humanitarian aid. Europeans say: that's not how it works, we've been killing eachother for a thousand years and we've learned that we must keep the peace, not prepare for war.
The European dream is about being involved with people. That means: not just letting people suffer under the free market, respecting diversity (even though you are much too afraid of immigrants), quality of life for society, durable development for the planet, social rights and ubniversal human rights.
Is Europe adhering to these principles? Of course not. It's a dream. We could talk for hours about all the things that are failing, and the hypocrisy at times. But the fascinating thing about the European dream is that it's different from every other dream in history. It's a new way of thinking that's a lot more appropriate for the present than the American dream."

ML: "It all sounds great: cooperation, solidarity. But a lot of Europeans are saying that those social aspects need to be corrected, that we should emphasize individual respnosibility."

JR: "That's true. Then you hear: there was a dream, yes, but it's over. We should be more sober. We can't afford it. The economy is lackluster, there are no new jobs. We need to move towards the old American model of the market without limitations. We should deconstruct the social security. It may be draconic and darwinistic to let everyone take care of themselves, but in America they at least know how to make the economy grow."

ML: "Exactly, that's what you're hearing in the Netherlands as well."

JR: "To those people I say: there is no correlation between the deconstruction of the social advantages and postive economic growth. They're incomparable. You can remove all the social security, you can give people more money to spend, but that'll only give you negative growth. More crime, more jails, worse health care, infrastructure and education."

ML: "But we need to take action to get Europe back up and running?"

JR: "It's a myth that America is a huge economic superpower and that the EU is about to collapse under the weight of social programs. The European BNP is equal to ours. It was larger than ours in 2003, about the same now. The EU is the largest exporter in the world, not the USA. Of 140 largest Fortune-500 companies 61 are European and only 50 American. 14 out of 20 largest banks are European. Europe is the largest in the insurance sector, in airplanes with Airbus, building and technology, chemical industry, and distribution.
America is the biggest in computers, software, cars and medicine. But the problem is perception. We mustn't compare the seperate European nations with the US. I teach entrepeneurs on both sides of the Atlantic. The Europeans amongst them see themselves not as Dutch or German but as European, because their rules come from Brussels. We should now compare Germany with California, the largest European nation with the largest American state, and Germany wins easily. Then the UK with New York. The UK wins. Then France and Texas. When I told in San Antonio, Texas, that France would easily win, I thought people would have a heart attack. The comparison state by state shows how large ad important the EU has become."

ML: "But our economy is still down."

JR: "Of course, Europe will have to adjust some of its social programs. Such as the ten years of unemployment benefits they used to have in Denmark, that's just ridiculous, and changed with reason. But you mustn't abolish such things. See what happens when you adopt the American model. You surrender: education. The American universities may still be the best, but on the llevel of primary and secondary education the 15 most developed nations within the EU overtook us some 10 years ago. Last year 18 European nationalities scored better on maths test than the Americans.
You're also surrendering healthcare. If you're seriously ill and can afford it, you fly to the States. But for normal health care? The USA is one of two industrial nations without general healthcare: the other one is South-Africa. In the USA 40 million people don't have health care. You live more doctors on average in the 15 most developed nations of the EU. You live a year longer than us, even though you smoke more. Your child mortality rate is a lot lower, because we have more absolute poverty: mothers are abandoned and their children die when born. Spare time: we get about 5 years of payed leave per year, although the employer can of course give you more, and it can go up to two weeks. You get four to six weeks.
Americans say, we're more productive. In the first 50 years of the last century we beat everyone in the area of productivity. We had cheap soil and resources. mBut from the late 50s to the late 90s the 15 most developed European nations did better than we did almost every single year. In second half of the 90s we caught up, and we did that dramatically in the past two years, but now our productivity has stalled. In 2003 17 EU-nations, amongst whom Germany and France, had a higher productivity than us per annum.
Look at the environment. The EU is lightyears ahead of us. The EU supported Kyoto and the treaty on biodiversity, we didn't. The EU is working on the transition to a hydrogen economy with renewable energy, to organic farming, we aren't.
And finally security. The percentage of murders is four times higher with us. A quarter of all prisoners in the world is imprisoned in my country. That's 2 percent of our male, adult work force."

ML: "But the USA has dropped in the 90s."

JR: "The successtory the neo-cons tell is false. America growing after the 89-92 recessions didn't happen because of the deconstruction of social security. The economy grew because of debts. Early 90s we gave everyone a creditcard, the averafe savings-quote (the percentage of income being saved) of an American family was 8 percent in 1990. It is 0 to 2 percent now. In Europe the average savings-quote is 15 percent. The American economy is growing on the basis of debts. It's a house of cards. This year more Americans will file for bankruptcy than will get a divorce, a heartattack, graduate or hear that they have cancer. Is that a healthy economy?"

ML: "But still, the jobs."

JR: "The past four years we've had a net decrease of jobs in the USA. The last time that happened was in 1929."

ML: "In the 90s the number of jobs grew strongly."

JR: "The university of Chicago, rather conservative, has researched that. Even in the Clinton-years, when unemployment supposedly decreased to 4.5 percent, the real unemployment was 9 percent. That's comparable to the 15 EU-nations. How can this be? In Europe you get unemployment benefits for a longer time, so you're counted as unemployed for a longer time. In my nation the benefits last 6 months. Then you end up in a different category that isn't counted as unemployed.
We did get a lot of people back to work after 89-92, but those were largely part-time jobs. You work for a couple of hours in the week, and you're counted as emplyed. Most European nations, except for the Netherlands and a few others, don't have flexible work hours. You either work fully, or you're unemployed. Plus we put two percent of our male, adult population in jail. They aren't counted.
The evidence for my being right is the money. We said the Euro would be toilet paper after 6 months, but why, then, is the dollar still losing ground to it? The financial world sees we have tons of debts. Millions of Americans spend more than they earn, and we financed our houses with low interest, and the now the interest is up, so when that bubble bursts we're in trouble. Then the Bush administration gave us tax-cuts, and the national debt rose quickly. Our trade deficit is going completely the wrong way. That's why investors are saying: your economy is built on a wrong foundation, so we're depreciating the dollar versus the euro.

ML: "Isn't this discussion about Europe and the USA becoming irrelvant because of the quick rise of China and India?"

JR: "China is in enormous trouble. There are colossal internal paradoxes, and I think we'll see huge economic shifts in the next years. Massive unemployment is a threat. The coubtryside is becoming empty, millions move to the city where they don't find jobs."

ML: "But Western companies are moving their factories to China."

JR: "Technology has cost 15 percent of China's workers their jobs in the past seven years. The cheapest Chinese worker isn't as cheap and efficient as the technology thatcan replace him. There;s a basic change going on around the globe. Massive working is being stopped: in farming, factories, services. Software can do the job of an architect or accountant, voice-recognition makes a lot of administrative jobs useless. Everywehere we have to start thinking differently about work. China is in the middle of this debate. The country is as the canary in the mine, once the canary dies it becomes dangerous. It isn't unlikely that China will be the first victim of massive political upheaval as a consequence of massive unemployment."

ML: "What should Europe do?"

JR: "Europe has a golden goose [translator: translation is starting to get a lot harder. Fuck it.] that is barely being fed. The alternative model to the bankrupt, indebted American model is the integratie of what is potentially the richest inernal market in the world, from the Irish Sea to the doorstep of Russia: 455 million consumers."

ML: "Sounds good. Just like the plan to have the most competitive economy of the world in 2010."

JR: "That was said 10 years ago, and nothing has happened since. After Lisbon, the European leaders started seeing national politics as the most important again. They started to capitalise on xenophobia, on the unrest with unions, corporations en regions, and said: we are losing too much to Europe. That always works politically, whether you're left or right."

ML: "But there are some serious questions you can ask about the constitution and how it came to be. A lot of people see it as a plan made up by a bunch of bureacrats they have no control over."

JR: "but does anyone seriously believe that the future welfare lies in returning to the small national market? That's something you don't hear a single politician about.
This is what Europe should do: establish an integrated communications, energy and transportation network within 15 years. Establish one set of rules for trade and labour within 10 years. English should become the lingua franca in business within 10 years. That isn't going to solve all the problems. The immigration fear should be conquered, because a lot more immigrants and children are needed to prevent Europe turning into an old people's home. Bbut you;re giving yourself a couple of years extra to build a durable economy, to think about the role of labour and all the other consequences of globalisation, and create a new energy-system based on hydrogen."

ML: "Okay, so you're still saying that Europe should dare to dream. But we aren't dreamers, we're sceptics and pessimists."

JR: "Everything I'm saying is irrelevant if the younger generation of Europeans doesn't believe in the new vision of the world. Excluding no-one, diversity, quality of life, universal human rights, peace. That's what Europe is about, that's the core of the European dream. There's too much talk about laws and marketforces. it makes people fall asleep. It has nothing to do with their life. What it's really about, is whether you are chasing a dream to become the first transnational space [ugh, translation] in history, to set a new standard in a globalising world.
This is where Americans can help. We can be optimistic in a naive or arrogant way. We like to take chances. Europe could have some more of this. You can't cherish a dream when you're cunical, skeptical, pessimistic, defeatist. Then you've given up on the future. I don't know whether Europe will do it. it may become the Napster of poltiics: a good model that failed, but was later adopted by everybody. A large part of the world is looking at Europe: what's happening there, is this the way the world will look? If Europe can't sustain this vision of a interdependent world, then we might fall back into the 19th century idea of everyone for himself. Why the skepticism, Europe? it's a challenge. You get what you ask for."

There, that took me bloody long enough.
I really see very little I can disagree with in this article, but I am quite certain that you people can. The only thing I dislike is the spraying about with facts without mentioning any sources.
 
*snort* Rifkin. Doesn't surprise me to see him go all Eurofellating. That man's not loved in the USof.

In any case, I'm sorry but that's a pretty stupid article. His analysis of the European and American Dream are pretty dead-on, except that he's loving the European Dream a bit too much, but he seems to be lacking on presenting a number of facts

Let me first complain about the fact that he keeps mentioning Europe in a breath when he means, I suppose, the EU (though he doesn't indicate that well everywhere, especially when vaguely speaking of figures). The EU is not Europe, for a lot of reasons, and even if it was the EU is an even more disunified union than America. I don't know what planet he lives on, but people I know don't feel European first and National second, especially people who live in the former Eastern Bloc. Even if that were so, it's not like you can speak of a unified European opinion, or even EU opinion, like he does so carelessely

For another thing he, like many people who don't bother to actually look at something before drawing conclusions, can only see the European Constitution as a collosal step forward in EU Development. Bull-fucking-shite. The European Constitution is nothing but an insane proposal that will tie the hands of democratic forces within the EU even further. Yes, it will unify the EU further, it will also grind its already monstrous bureaucratic force even more into gear, leaving the populace even more powerless and probably for some time even more disinterested. However, likely long-term scenario would be the collapse of the already liable Union because of popular protest.

God, I wish people would actually do some reading on the f'ing Constitution before defending or attacking it. It gets tiring.

Oh, but great, here he comes, our great salvator, telling us to ignore the reality of the matter and chase some potshot dream. No. He may be able to ignore facts about the state of the European market by flinging some random and often unimportant numbers around just because he's fond of his own little Dream-theory, but I certainly will not. What a little crack-head.

Also he's wrong about China and India.

He seems to contradict himself about reconstructing economy and deconstructing social advantages. He says "there is no correlation between the deconstruction of the social advantages and postive economic growth" whereas later on he says "Of course, Europe will have to adjust some of its social programs. Such as the ten years of unemployment benefits they used to have in Denmark, that's just ridiculous, and changed with reason. But you mustn't abolish such things."

And that's where the only interesting point of this article lies. He does seem to realise fairly well that blindly adapting to American models will do Europe little but harm, which is not something all Europeans realise. This doesn't mean, however, that we can't take example on things that do work in the States or that we're heading the right way right now. And by that I don't mean their naivity or arrogance, as he so nicely puts it.

His theory on why America is different from Europe is interesting, but rather harmed by the fact he just keeps shooting of bits of theory without supporting them. A few alineas hardly suffices to explain such a situation and he fails abismally at it.
 
Kharn said:
*snort* Rifkin. Doesn't surprise me to see him go all Eurofellating. That man's not loved in the USof.

In any case, I'm sorry but that's a pretty stupid article. His analysis of the European and American Dream are pretty dead-on, except that he's loving the European Dream a bit too much, but he seems to be lacking on presenting a number of facts

Let me first complain about the fact that he keeps mentioning Europe in a breath when he means, I suppose, the EU (though he doesn't indicate that well everywhere, especially when vaguely speaking of figures). The EU is not Europe, for a lot of reasons, and even if it was the EU is an even more disunified union than America.
True enough, it's been translated twice, though, so things may have gotten lost in translation, as they tend to do (although I payed special attention to the usage of EU and Europe). But yes, it's the same thing as using America as a synonym for the USA, it's popular usage even though it's incorrect, and you're doing that too. I think it's quite safe to assume he meant Europe when saying EU.

Kharn said:
I don't know what planet he lives on, but people I know don't feel European first and National second, especially people who live in the former Eastern Bloc.
I haven't seen him say that anywhere, though. When he does say something like it, he's talking about the European entrepeneurs he's been talking to, and the reason he gives is that all the rules they deal with come from Brussels, which is Europe.

Kharn said:
Even if that were so, it's not like you can speak of a unified European opinion, or even EU opinion, like he does so carelessely
He doesn't that much, though. The only thing he seems to see as the same all over the EU is that European Dream, but yes, the EU is very diverse. I'm not certain as to whether you can ever extrapolate anything over such a diverse population, but this is a decent try, really.


Kharn said:
For another thing he, like many people who don't bother to actually look at something before drawing conclusions, can only see the European Constitution as a collosal step forward in EU Development. Bull-fucking-shite. The European Constitution is nothing but an insane proposal that will tie the hands of democratic forces within the EU even further. Yes, it will unify the EU further, it will also grind its already monstrous bureaucratic force even more into gear, leaving the populace even more powerless and probably for some time even more disinterested. However, likely long-term scenario would be the collapse of the already liable Union because of popular protest.
Actually, he doesn't say anything about the contents of the constitution, only about the debate surrounding the constitution. Judging by the way he bounces around the issue of the constitution I'd say he hasn't read it, or hasn't given it much thought, but what I can take from this article, at least, is that he's commenting on the debate about the constitution rather than the contents of the constitution.

Kharn said:
God, I wish people would actually do some reading on the f'ing Constitution before defending or attacking it. It gets tiring.

Oh, but great, here he comes, our great salvator, telling us to ignore the reality of the matter and chase some potshot dream. No. He may be able to ignore facts about the state of the European market by flinging some random and often unimportant numbers around just because he's fond of his own little Dream-theory, but I certainly will not. What a little crack-head.
As I said, I'm not too happy with the lack of sources on those seemingly magical numbers. But he does have some points, the European economy is poor, but not really worse than the American economy. The Euro is a lot more expensive than the dollar, which has some ad and disadvantages, but the dollar has lost its position as the secure coin.

Kharn said:
Also he's wrong about China and India.
True, it seems a bit odd, especially now you hear it after every bit of positive remark about China and India and its vastly growing economy, and his bit about voice-recognition software is downright silly (we're nowhere near anything that could be used at a level he's suggesting, really. If computer-forms can't replace a worker, computer-forms that are spoken and can be spoken to can't either).
Kharn said:
He seems to contradict himself about reconstructing economy and deconstructing social advantages. He says "there is no correlation between the deconstruction of the social advantages and postive economic growth" whereas later on he says "Of course, Europe will have to adjust some of its social programs. Such as the ten years of unemployment benefits they used to have in Denmark, that's just ridiculous, and changed with reason. But you mustn't abolish such things."
Agreed, moreover, the argument is shown without any supporting evidence or arguments, even.

Kharn said:
And that's where the only interesting point of this article lies. He does seem to realise fairly well that blindly adapting to American models will do Europe little but harm, which is not something all Europeans realise. This doesn't mean, however, that we can't take example on things that do work in the States or that we're heading the right way right now. And by that I don't mean their naivity or arrogance, as he so nicely puts it.

His theory on why America is different from Europe is interesting, but rather harmed by the fact he just keeps shooting of bits of theory without supporting them. A few alineas hardly suffices to explain such a situation and he fails abismally at it.
Yes, sadly. Although he does have a book out about this ("The European Dream") where he probably goes a lot more in depth.
 
But he does have some points, the European economy is poor, but not really worse than the American economy.
Que? How so? Euro economy is in the pits. GDP growth rate of EU is inflated by high growth in still poor areas. I don't really think it is fair to compare the German or French economy to the US economy, as Germany currently has unemployment higher then we've had it in the US sense the depression.
 
I read the little bit about US real unemployment; 9%. That's still below Germany, 12 %, and about half of Germany's real unemployment, 18%. And Germany is the economic model of the EU. This would be similar to 1/5 of the population in New York being unemployed.

And why is it that everyone assumes that an American style economy would just not suit europe? Not exactly, but no one ever suggested some manner of direct clone onto Europe. But as far as I can tell Ireland and Austria are the two most succesful nations in the developed EU precisely because they don't buy into the EU's psedo-NEP-esque economic policy.
 
John Uskglass said:
And why is it that everyone assumes that an American style economy would just not suit europe? Not exactly, but no one ever suggested some manner of direct clone onto Europe. But as far as I can tell Ireland and Austria are the two most succesful nations in the developed EU precisely because they don't buy into the EU's psedo-NEP-esque economic policy.

Ireland is the biggest model of EU-backed growth, it only grew because of heavy EU support. Do your homework.

Austria...what?

Read the entire article before commenting in the thread, please
 
There is a lot of wild optimism about Europe in there, i think that`s for sure, but read the part on how the unemployement is rated differently in both places, and you`ll see how many many times europeans and americans are talking about diferent criteria while they think they are talking about the same thing.

And take a deeper look on the amount of people that disapear from the workforce while not beeing in the oficial numbers of unemployement in america, that´s a factor that is increasingly becoming a major issue on american economical policy, wich needs high consuption (even more than consumer confidence) and not high savings like in Europe, to keep thriving.

My point is at this time you are getting older, so while not going against your scepticism on the European models (there isn`t a single european model), maybe i could call your attention to start processing the numbers on the American economy by yourself, without the pundits spin, and you´ll find a diferent picture than the one you`re used to.

On Europe the balance will be between the schock of the Chinese industrial goods taking over, together with the software and computer delay regarding the States (or the outsourcing States, as i call it these days...) and the possibilities of an unified 25 countries single market, with a bigger size than the USA and Russia put together.

Whatever happens won´t be a product of ideological spin on both sides, as usual.
 
Ireland is the biggest model of EU-backed growth, it only grew because of heavy EU support. Do your homework.
What on earth are you talking about? 1995-2000 Ireland lowered taxe rates, curbed government spending as a part of GDP, and as far as I can tell doubled trade with the US....these sound like EU ideas to you? Ireland's economy is more USA then EU; it has poor healthcare, moderate education, and a relitivley high gini coefficent. Do your homework.

Austria...what?
http://en.wikipedia.org/wiki/Image:EU-GDP-PPP-pc-map.png

but read the part on how the unemployement is rated differently in both places
Talk about spin. As I said, real US unemployment is around 9%. However, Rifkin did NOT mention real German unemployment, twice that at 18% according to the Economist.

And take a deeper look on the amount of people that disapear from the workforce while not beeing in the oficial numbers of unemployement in america, that´s a factor that is increasingly becoming a major issue on american economical policy, wich needs high consuption (even more than consumer confidence) and not high savings like in Europe, to keep thriving.
Oh yes, this is certainly true. But this is not the age of Mercantalism. American economy has always been based on global high consumption then local consumption. More economically advanced nations (India, China) means more exports.

And our unemployment has not spiked any time soon (save 2001( as far as I can see.

Anyone who complains of America exporting jobs to the world has no understanding whatsoever of what the American economy is over the last 50 years. The Industrial revolution came about when the European and American powers found that raw materials could be produced more cheaply overseas; thus the economy of both areas changed. The technological revolution came about when peopel found out it was more efficent to have industries overseas, thus freeing up skilled labour in industrialized nations.

There have always been skeptics of this, and they have always been wrong. Read Vonnegut's Hocus Pocus, or just look at the luddites.

My point is at this time you are getting older, so while not going against your scepticism on the European models (there isn`t a single european model), maybe i could call your attention to start processing the numbers on the American economy by yourself, without the pundits spin, and you´ll find a diferent picture than the one you`re used to.
All I see are pundits and spin. I'm not particularly fond of the American model anymore; events in my life have lead me to question the morality of America's individualism and social inequalities. However, I do not believe that an answer to our problems can be found in the EU, as is now or will soon be obvious.
 
And why is it that everyone assumes that an American style economy would just not suit europe?

Because it disgusts them? Because it violates their ideals?

Europeans have to create an economy that works for them both socially and monetarily. That's why our economy has worked, because we believe in its principles.

Look at it this way:

The American and European economies are like people in boats.

In America, there are several kinds of boats.

Some people have wonderful boats. Fast boats. Strong boats.

Many more simply have OK boats. They're not particularly fast, but they're strong. They can get places, just not as fast as the wonderful boats.

And on the bottom, you have people with crappy boats. They get knowhere because of constant leaks in the hull.

If they wanted, though, the people in crappy boats could still build a better boat. They may or may not be able to do so, but the opportunity is still there.

In Europe, however, everybody has the same boat.

They're all ok boats. People get places, but they can never get there like people in wonderful boats. Nor is there much room for them to build a better boat.

This is still better than absolute socialism, where everybody has a crappy boat and can never build a better boat.

In America, some are better than others, but there's always room for improvement. In Europe, everybody is doing fairly well, but the actual state of the economy is stagnant.

Europeans have to find an economic system that caters to their social concerns, while still allowing room for a better boat.

So why can't the American concept of free market work in Europe? Because Europeans have different social concerns. There's not enough room, and more people.
 
Excellent comparison Bradylama, but you forgot the people with no boats! Oh, and i think i need a bigger boat. :D
 
John Uskglass said:
And why is it that everyone assumes that an American style economy would just not suit europe?

I forgot to mention this....Wrong, bucko. Nobody assumes shit.

First of, there are European countries with systems quite similar to that of the USA and a lot of those countries work. Does this mean we need to apply this model to the Rhineland States, the Nordic States or France? No.

Nobody is assuming anything. Most of the major attempts to directly apply American models to *replace* current models (note, replace, so I'm not talking about countries that already had this system from the get-go) have been collosal failures. The response of the UK, France and the Netherlands, to drop a few, to liberalization have been a collapse of social systems, not to mention them becoming more expensive, and usually also a hit on the local economy.

Heck, are you really saying we should copy your healthcare system, the most expensive one on the planet while still impressively leaving 40 million people uninsured? I don't think so. Did it ever occur to you America's riches don't all come from its economic models and thus they might not all work?

John said:
What on earth are you talking about? 1995-2000 Ireland lowered taxe rates, curbed government spending as a part of GDP, and as far as I can tell doubled trade with the US....these sound like EU ideas to you? Ireland's economy is more USA then EU; it has poor healthcare, moderate education, and a relitivley high gini coefficent. Do your homework.

man, you are a monkeybreath at times.

Ireland is considered one of the succesmodels of the EU. After it joined the EU its economics boomed because of high subsidiary funds from the EU. Ireland is the big reciever of the EU. Where Germany and Holland keep shovelling money into the incinerator Ireland is at the other end swallowing it up.

Mark it: Ireland's economy is funded by the EU. This has nothing to do with it having a EU model or not, it is about EU fundings. Read 'em an weep (as of 2003, but the situation doesn't change much):

Ireland last year received the most EU funding per person, while the Netherlands paid in the most per capita, according to a report unveiled yesterday by the European Commission.

Four countries - Ireland, Portugal, Greece and Spain - were revealed to receive more money from the EU pot than they pay in.

Each Irish citizen received just under 400 euro last year from EU funds.

At the other end of the scale, Dutch citizens each paid in 120 euro to the EU coffers.

Other net contributors were Sweden (106 euro per citizen), Germany (93 euro), Belgium (75 euro) and the UK (46.5 euro). The French pay 32 euro each.

http://www.grondweteuropa.nl/932600...9vvgjnazrhmix9/vgtka3tzdbwr?nctx=vgaxlcr1jzjo

Also Ireland's budget is nearly 50% of their national GDP, which is quite a lot, even by welfare state standards. Of course budget is a bad way to measure it, but we'll get to that later

John said:
http://en.wikipedia.org/wiki/Image:EU-GDP-PPP-pc-map.png

Funny, Denmark is on there too, and you seem to have accidentally omitted to mention it scores higher than both Ireland and Austria in GDP pc, as per CIA World Factbook:

Austria: $30,000 (2003 est.)
Ireland: $29,600 (2003 est.)
Denmark: $31,100 (2003 est.)

Austria is an interesting example, however, since it has a strong tradition as a welfare state that was recently slashed to bits by, paradoxally, the left wing. However, I'd like to point my finger to this little list:

List of welfare states

"General government total outlays" as a % of GDP during 2003 from the OECD "Fiscal balances and public indebtedness - EO75 Annex Tables".

* Australia (36.4)
* Austria (51.2)
* Brazil
* Canada (40.1)
* Denmark (56.1)
* Ireland, republic of (35.2)
* Italy (48.9)
* Finland (50.6)
* France (54.5) "solidarity and insertion"
* Germany (48.9) "the social market economy"
* New Zealand (38.5) "social democratic welfare"
* Norway (48.4)
* Saudi Arabia
* Spain (39.5)
* Sweden (58.2) "the institutional-redistributive model"
* United Kingdom (42.6) "the welfare state"
* United States (35.7)
* Uruguay

http://www.answers.com/topic/welfare-state-2

It is interesting to note, in fact, how expensive it can be to try and destroy a welfare state. The Netherlands tried to do so during the booming economic times 1992-2000. In a time when they were raking in cash during great economic fortitude, they spent almost all of it on failed project to privatize the train and postal system, to name but two examples, both of which failed miserably, have dropped in quality and become more expensive for the government and the people.

But hey, yay liberalisation, huh?

John said:
Talk about spin. As I said, real US unemployment is around 9%. However, Rifkin did NOT mention real German unemployment, twice that at 18% according to the Economist.

Are you even listening? Briosa just named several examples of why the US numbers are false and you should make a re-appraisel. I don't think such an empty counter-statement quite removes the power of that.

Also, I did not bring this up during our last little talk about this because that was purely an economics one, but if we're talking about the state in general I think there are less EU citizens that will cry about sacrificing some of our economic force for the general good than there are those that will cry about that, even if those can cry louder because of big bussiness bucks. Like brady said, we're not the US.
 
Its also impossible to get rid of a strong social program without generating a massive money vacuum. Perhaps eventually things will level and improve, but for quite a while there'll be a noticeable dip in the economy due to the lost investment.

There was recently an "economist" on the Daily Show who said that our mothers would all be eating cat food if Bush privatized social security, which is bullshit, because anybody who relies on our social security system for retirement is going to be eating catfood anyways, but the dip will be unavoidable. We're actually having to borrow more money to make up for the lost money pool that social security provided.

Now imagine our own sterile social security system being done away with, and compare it to the affects of stronger welfare states like those in Europe.
 
I read the little bit about US real unemployment; 9%. That's still below Germany, 12 %, and about half of Germany's real unemployment, 18%. And Germany is the economic model of the EU. This would be similar to 1/5 of the population in New York being unemployed. And why is it that everyone assumes that an American style economy would just not suit europe? Not exactly, but no one ever suggested some manner of direct clone onto Europe. But as far as I can tell Ireland and Austria are the two most succesful nations in the developed EU precisely because they don't buy into the EU's psedo-NEP-esque economic policy.
Let me see. Austria: 8,175,000 people. Ireland: 3,970,000 people. Germany: 82,425,000 people.

1. Please tell me

1) what you mean by "real unemployment",
2) where you got these figures from.

2. I'm not so sure that Ireland is one of the most successful countries in Europe, at least not economically. The growth of wealth is generated by firms that came from foreign countries, and the real income of Irish people remained quite untouched; I read an article about that some time ago, although I'm not sure where it was. If anyone has better information about that topic please post them.

3. One should keep in mind that in Germany in 1990 the process of unification has started, a process that neither politically nor economically has come to an end.
 
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