France and Germany approach the event horizon...
As the post Cold War world continues to unfold, the economies and social dynamics in Western Europe are reaching critical mass.
This outstanding read examines the current problems and what may lie ahead for the two socialist post-industrial economies in France and Germany. Quite simply, they've regulated themselves into a catatonic economic state. Relying on government spending for economic output, removing free market bargaining from labor, and creating a government welfare system that isn't a safety net but rather a hammock, these countries have created intractable problems. When those receiving the fruits of production outnumber of those required to produce, the tipping point is passed.
Radical reform is needed, but will be resisted by those on the receiving end of the redistribution equation. And pressure to congeal politically and economically with the EU runs counter to what will be required to enact much of the required change - nationalism.
Nationalism is remarked in the article as a dark force, understandably so in the case of Germany, but nationalism is a normal word that has been turned into an epithet. The "Made in the USA" campaign is nationalism - surely, nothing too harmful about looking for such labels on my clothing, is there?
It is not a question of if these dynamic forces will emerge, but when...
Posted by MEC2 at September 8, 2004 10:03 PM