The Greek Mess
Following the election of a pro-bailout party in Greece on June 17, the new Greek government being formed this week will try once more to negotiate a solution to its intractable debt crisis that will keep it in the eurozone. But how did Greece get into this situation in the first place? Are other countries at risk of falling into the same predicament?
June 20, 2012
The North West London Blues
I don’t think the argument in favor of libraries is especially ideological or ethical. I would even agree with those who say it’s not especially logical. I think for most people it’s emotional. Not logos or ethos but pathos. This is not a denigration: emotion also has a place in public policy. We’re humans, not robots.
June 2, 2012
An End to Austerity?
The announcement Wednesday by Germany’s chancellor, Angela Merkel, that her nation is ready to discuss economic stimulus to keep Greece in the eurozone is—if serious—a hugely important development. But the critical test will be what policies emerge from this announcement.
May 17, 2012
What the Polls Don't Tell Us
We keep being told that the general election is underway, though in a sense it never wasn’t. The candidate often referred to as “presumptive”—so much so that one might think that is Mitt Romney’s real first name—a Romney adviser tells me, all along campaigned as much against Obama as he did against his primary opponents. Meanwhile the President and his advisers only briefly considered that the opponent would be other than Romney, and so the President got off a few barbs aimed at him—such as mocking Romney’s describing his own budget proposal as “marvelous”—not a word, the President said, one would use about a budget, or at all. However now that both candidates have all but officially nailed down the nomination, there are some important things to keep in mind as we watch the national campaign unfold.
April 23, 2012
How Democracy Can Save Europe
The European crisis, which we process from headline to headline as a matter of currencies and bailouts, is really a test of large-scale democratic capitalism. The hope was that a debt crisis, when it came, would by necessity produce a unified fiscal policy. But fiscal policy is at the very core of a democratic system, and the EU is not yet democratic. Instead, the German government has indulged its population in the dangerous fantasy that European imitation of German austerity will solve the problem. As a result, domestic politics in Germany and on the European periphery threatens to undo the European system. To resolve the crisis, German leaders must persuade Germans and other Europeans to take the bold step of supporting a functioning European democracy. Here is how to do it.
February 7, 2012
How Austerity Is Killing Europe
The European Union has become a vicious circle of burgeoning debt leading to radical austerity measures, which in turn further weaken economic conditions and result in calls for still more damaging cuts in government spending and higher taxes. Rarely do we get so stark an example of bad—arguably even perverse—economic thinking in action. How could the EU so misread history and treat with contempt the teachings of John Maynard Keynes, who showed that during recessions governments must expand economies through spending and tax cuts, not the opposite? By ignoring this, European policy makers will deepen, not solve, the financial crisis and millions of people will suffer needlessly.
January 6, 2012