Themes
The Risks of Withdrawal
Entering a war is easy; getting out of it is the hard part. That axiom is particularly true for the United States today, as it muddles through three wars – two of which were forced upon it (Afghanistan and the “war on terror”), with the third (Iraq) started unnecessarily by a US administration blinded by [...]
International Trade and the Fight Against Climate Change
In the fight against climate change international trade can be either part of the problem or part of the solution. Both policy areas are closely intertwined. Just consider the millions of tons of goods ranging from T-shirts to raw materials that are transported across the globe, creating 23% of global CO2 emissions. Obviously, it would [...]
Two Men in a (Jackson) Hole – and One is still digging
There has been considerable coverage of Ben Bernanke’s speech to the annual central bankers’ bash at Jackson Hole on Friday. A number of US commentators have criticised his reticence to commit to more decisive stimulus (Paul Krugman, Dean Baker); the Financial Times called it ‘vapid’. There was much less coverage of ECB President Trichet’s address [...]
Warning: Why Cheaper Money won’t mean more Jobs
Can the Fed rescue the economy by making money even cheaper than it already is? A debate is being played out in the Fed about whether it should return to so-called “quantitative easing” – buying more mortgage-backed securities, Treasury bills, and other bonds – in order to lower the cost of capital still further. The [...]
The French System of Collective Bargaining
Collective bargaining in France was generalised by law in 1950, which established the industry as the main level for bargaining. In 1971, collective bargaining at the ‘inter-professional’ (cross-industry) level was also established. Finally, the ‘Auroux laws’ of 1982 imposed an annual obligation to bargain about wages and working time at the workplace or company level [...]
Farage is Right About One Thing: The EU’s Democratic Deficit Does Matter
One of those sinful pleasures that some young progressives (among others) secretly indulge in is watching the chairman of the Europe of Freedom and Democracy EP group, Nigel Farage, humiliate time and again the EU’s leadership. Yes, even with all the cheap demagogy and the tasteless ad hominem attacks, Farage can be very funny. Nevertheless, [...]
Growth in a Buddhist Economy
I have just returned from Bhutan, the Himalayan kingdom of unmatched natural beauty, cultural richness, and inspiring self-reflection. From the kingdom’s uniqueness now arises a set of economic and social questions that are of pressing interest for the entire world. Bhutan’s rugged geography fostered the rise of a hardy population of farmers and herdsmen, and [...]
The Spirit Level’s Political Wobble: The Inequality Debate Rages On
Wilkinson and Pickett’s The Spirit Level: why equality is better for everyone is an admirable book and has generated a long-overdue debate about the high social costs of inequality. Inequality is not just about the poor staying poor; it is about the huge leap in income and wealth of the rich, or ‘super rich’ as [...]
If the “rule of law” could talk, we’d hear it shriek
Quote of the day (well, technically yesterday) „When people break the law with impunity, it encourages further disobedience and breeds further disrespect for the rule of law.” Oh my, I’d love a glimpse of that thermometer in hell, the temperatures must be dropping rapidly. Guess who wrote these lovely lines re illegal immigration? None other [...]
Why Growth is Good
Economic growth is slowing in the United States. It’s also slowing in Japan, France, Britain, Italy, Spain, and Canada. It’s even slowing in China. And it’s likely to be slowing soon in Germany. If governments keep hacking away at their budgets while consumers almost everywhere are becoming more cautious about spending, global demand will shrink [...]
Obama’s Iftar-Speech Fuels Mosque Controversy
With the oil leak in the Gulf of Mexico almost stopped, America all of a sudden finds itself enmeshed in a new ferocious debate about religion; one that is likely to further damage the president’s outreach agenda to the Muslim world. At a recent Iftar-dinner at the White House, Obama made the following remarks: ‘… [...]
Angela Merkel: The World’s ‘Most Valuable Leader’
Forget Barack Obama. Forget the Hu Jintao/Wen Jiaboa duo, or David Cameron or Vladimir Putin. Germany’s Chancellor Angela Merkel is the world’s most important leader. The latest report showing Germany’s economy growing at a blistering annual rate of nearly 9%, well into recovery from a US-made economic collapse, is just further evidence of the obvious. Despite [...]
