Project for Philosophical Evaluations of the Economy |
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Saving the EURO will require a lot more courage
A dialogue with the Alter Ego the first “Merkozy show” 2012, first drafted on Jan. 11, published on Jan. 12, 2012
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Question by Alter Ego of Noah denkt™ (AE): If we can believe El País (see. Jan. 10 edition, p.2) German Chancellor
Merkel and French President Sarkozy are finally talking about how to stimulate the doomsday economies in
Europe. Isn’t it high time that they would do that?
Answer by Noah denkt™ (Nd): Absolutely. Unfortunately though, the two leaders seem to be very timid in the
measures that they are discussing at this time (i.e. a best practice study and support for small and medium sized
companies, see footnote *** below). In fact, these recommendations, it they are actually true, are so laughable that
they have us wondering whether Chancellor Merkel and President Sarkozy actually do understood the severity of
the crisis that countries like Spain, Portugal and others are currently going through.
AE: But what is so bad about supporting small and mid-sized entrepreneurs? After all, it’s here where most jobs
are being created.
Nd: Sure, but given the fact that there is a 40% unemployment rate among young people in Spain, some tinkering
on the edges will no longer suffice to stave off a major disaster.
AE: So what is it that you are suggesting beyond what we have already mentioned earlier in our “Growth and
Austerity” dialogue?
Nd: Well, to put it quite bluntly, it seems to us as if it is necessary to put the entire concept of a social market
economy on the dock. In other words, we believe that European leaders should understand that an overly
protective labor law and overly interfering welfare state just don’t work anymore in this kind of turbo-dynamic
marketplace that we are operating in.
AE: Jesus, you are getting more radical by the minute! But please, explain yourself!
Nd: Okay, the problem with this cherished concept of a social market economy is that by the very nature of its own
philosophy it doesn’t really embrace the idea of a free, open-minded and encouraging society but much rather
views the latter with a certain caution and disdain. Do not forget that right from the start, the social market
economy was specifically designed to be a third, middle way between communism and capitalism, since both of
the latter philosophies were being perceived as being excessive and damaging at the time. So, it doesn’t really
come as a surprise when most people in Europe tend to call for state aid, when getting into trouble rather than
trusting their own capacity to extract themselves from their current misery. In other words, it is our opinion that the
philosophy of a social market economy treats people in a condescending and patronizing manner and is hence
responsible both for the pompous way in which the establishment enacts itself and for the absence of a true
American dream in our European societies. Or to put it even differently, it is a direct consequence of the social
market economy that our national economies aren’t flexible enough to reinvent themselves when necessary, since
all non-established, newcomer proposals tend to be viewed as overly risky and not trustworthy enough even
before they have been fully explained.
AE: But come on, isn’t it true that the free capitalism of the United States has produced huge disruptions? Just
witness the last financial bubble! That was all due to unchecked liberalism, wasn’t it? And is it not also true that
Germany’s economy is doing pretty well despite the fact that it is such a top-down type of society?
Nd: Well, first of all, the situation in Germany isn’t all that great. It’s just less constraint than in its neighboring
countries. Germany too has a problem with an aging population, a burgeoning pension system and an overly
burdened medical care system. And you just have to look at the annually renewable employment contracts that
are more and more common in Germany to understand that the concept of a social market economy is being
hollowed out even from within. The main question here, however, is not about Germany but rather about the
devastating bubbles that free market economies generate. Because there can be no denial that huge follies do
occasionally erupt in an open society. And here we have to ask ourselves whether we prefer to trust our own
capacity to handle whatever is going to come up or whether we are more inclined to shy away from the unknown
only to find out later that we can’t really shield ourselves from a global event anyway? In other words, we simply
have to recognize that survival in this world has a lot to do with faith and confidence. And sadly enough, the
philosophy of a social market economy is not doing enough to inspire that necessary confidence into its citizens.
And that is why it will eventually have to go.
AE: We have talked many times about your near suicidal optimism and confidence. And yet again, we need to
remind you that sometimes too much optimism and confidence can have disastrous consequences. Just think
about the horrific effects of the Nazi megalomania! Shouldn’t that experience be reason enough for Europe to
take it easy on every kind of reinvention proposal?
Nd: Well, we certainly understand the lesson of caution which the European history teaches us. But it also seems
to us as if it is getting time to move on and regain a stronger and better calibrated faith in our constructive abilities.
AE: Frankly, we do not see that happening in Europe.
Nd: The odds certainly aren’t very much in favor of such a cultural leap forward. But we still want to grant our
societies the benefit of doubt, at least for the time being.
AE: Hence, we continue to stay optimistic on the future of the EURO?
Nd: That’s correct.
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Footnote ***: [Para impulsar el crecimiento económico y la creación de empleo en 2012…] …"Propondrán un estudio de los
mercados laborales europeos para ‘aprender de los mas exitosos’. Para crear empleo, Merkel propuso políticas centradas en el
apoyo a las pequeñas y medianas empresas.” (EL País, Jan. 10, 2012)
A dialogue with the Alter Ego the first “Merkozy show” 2012, first drafted on Jan. 11, published on Jan. 12, 2012
---------------------------------------------------------------------------------------------------------------------------------------------
Question by Alter Ego of Noah denkt™ (AE): If we can believe El País (see. Jan. 10 edition, p.2) German Chancellor
Merkel and French President Sarkozy are finally talking about how to stimulate the doomsday economies in
Europe. Isn’t it high time that they would do that?
Answer by Noah denkt™ (Nd): Absolutely. Unfortunately though, the two leaders seem to be very timid in the
measures that they are discussing at this time (i.e. a best practice study and support for small and medium sized
companies, see footnote *** below). In fact, these recommendations, it they are actually true, are so laughable that
they have us wondering whether Chancellor Merkel and President Sarkozy actually do understood the severity of
the crisis that countries like Spain, Portugal and others are currently going through.
AE: But what is so bad about supporting small and mid-sized entrepreneurs? After all, it’s here where most jobs
are being created.
Nd: Sure, but given the fact that there is a 40% unemployment rate among young people in Spain, some tinkering
on the edges will no longer suffice to stave off a major disaster.
AE: So what is it that you are suggesting beyond what we have already mentioned earlier in our “Growth and
Austerity” dialogue?
Nd: Well, to put it quite bluntly, it seems to us as if it is necessary to put the entire concept of a social market
economy on the dock. In other words, we believe that European leaders should understand that an overly
protective labor law and overly interfering welfare state just don’t work anymore in this kind of turbo-dynamic
marketplace that we are operating in.
AE: Jesus, you are getting more radical by the minute! But please, explain yourself!
Nd: Okay, the problem with this cherished concept of a social market economy is that by the very nature of its own
philosophy it doesn’t really embrace the idea of a free, open-minded and encouraging society but much rather
views the latter with a certain caution and disdain. Do not forget that right from the start, the social market
economy was specifically designed to be a third, middle way between communism and capitalism, since both of
the latter philosophies were being perceived as being excessive and damaging at the time. So, it doesn’t really
come as a surprise when most people in Europe tend to call for state aid, when getting into trouble rather than
trusting their own capacity to extract themselves from their current misery. In other words, it is our opinion that the
philosophy of a social market economy treats people in a condescending and patronizing manner and is hence
responsible both for the pompous way in which the establishment enacts itself and for the absence of a true
American dream in our European societies. Or to put it even differently, it is a direct consequence of the social
market economy that our national economies aren’t flexible enough to reinvent themselves when necessary, since
all non-established, newcomer proposals tend to be viewed as overly risky and not trustworthy enough even
before they have been fully explained.
AE: But come on, isn’t it true that the free capitalism of the United States has produced huge disruptions? Just
witness the last financial bubble! That was all due to unchecked liberalism, wasn’t it? And is it not also true that
Germany’s economy is doing pretty well despite the fact that it is such a top-down type of society?
Nd: Well, first of all, the situation in Germany isn’t all that great. It’s just less constraint than in its neighboring
countries. Germany too has a problem with an aging population, a burgeoning pension system and an overly
burdened medical care system. And you just have to look at the annually renewable employment contracts that
are more and more common in Germany to understand that the concept of a social market economy is being
hollowed out even from within. The main question here, however, is not about Germany but rather about the
devastating bubbles that free market economies generate. Because there can be no denial that huge follies do
occasionally erupt in an open society. And here we have to ask ourselves whether we prefer to trust our own
capacity to handle whatever is going to come up or whether we are more inclined to shy away from the unknown
only to find out later that we can’t really shield ourselves from a global event anyway? In other words, we simply
have to recognize that survival in this world has a lot to do with faith and confidence. And sadly enough, the
philosophy of a social market economy is not doing enough to inspire that necessary confidence into its citizens.
And that is why it will eventually have to go.
AE: We have talked many times about your near suicidal optimism and confidence. And yet again, we need to
remind you that sometimes too much optimism and confidence can have disastrous consequences. Just think
about the horrific effects of the Nazi megalomania! Shouldn’t that experience be reason enough for Europe to
take it easy on every kind of reinvention proposal?
Nd: Well, we certainly understand the lesson of caution which the European history teaches us. But it also seems
to us as if it is getting time to move on and regain a stronger and better calibrated faith in our constructive abilities.
AE: Frankly, we do not see that happening in Europe.
Nd: The odds certainly aren’t very much in favor of such a cultural leap forward. But we still want to grant our
societies the benefit of doubt, at least for the time being.
AE: Hence, we continue to stay optimistic on the future of the EURO?
Nd: That’s correct.
----------------------------------------------
Footnote ***: [Para impulsar el crecimiento económico y la creación de empleo en 2012…] …"Propondrán un estudio de los
mercados laborales europeos para ‘aprender de los mas exitosos’. Para crear empleo, Merkel propuso políticas centradas en el
apoyo a las pequeñas y medianas empresas.” (EL País, Jan. 10, 2012)
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| Keywords: politics of austerity and growth, saving the EURO, European debt crisis, debt crisis in the EURO-zone, generating growth while being austere, social capitalism, flat-rate tax system, educational reform, labor law reform, social market economy, reforming the social market economy |