Is the European Union nearing a break-up? An alarming Pew Center poll reveals that the French now support the ‘European Project’ less than the British – a trend repeated across the continent. According to Die Welt columnist Alan Posener, rejection of the ideas of British economist John Maynard Keynes in Europe, which have been re-embraced in the Anglo-Saxon world, explain the downward economic spiral now threatening the core of post-war Europe.
For Die Welt of Germany – one of the few E.U. nations chugging along economically – Alan Posener writes in part:
For 30 years – from 1977 to 2007 – Keynesianism was something to be overcome.
Then came the crash. In the Anglo-Saxon world, one remembered the man who had saved capitalism before. George W. Bush and Barack Obama in the United States spent and continue to spend money lavishly to raise the “animal spirits” of investors and consumers, who, according to Keynes, ultimately determine the success of the economic cycle. In Europe as well, we initially thought of Keynes – as shown, for example, by the premium paid by the “grand coalition” for the scrapping of old cars. However, when interest rates on European sovereign debt rose briefly to record levels, Keynesian ideas and policies were quickly returned to the poison cupboard.
The demonization of Keynesian economics so thoroughly succeeded that continental Europeans – in contrast to the British and Americans, and during in the worst crisis of the postwar period – won’t even consider trusting Keynes’ ideas. According to the most recent survey by the Pew Institute, 81 percent of French, 67 percent of Germans and Spaniards, and 59 percent of Italians agree with cuts as a way of overcoming the crisis: Only 18 percent of French, 26 percent of Germans, 28 percent of Spaniards, and 29 percent of Italians favor increased spending as a way of stimulating the economy. Well countries, let the fun continue.
Keynes feared the consequences of the “practical failure” of neoliberal ideas that are visible across Europe. Left-wing advocates support a rule of “we” – and right-wing ideologues among nationalists are on the rise. The main victim of this nationalistic fervor is the European Union: Meanwhile, according to the Pew survey, the French are even more euro-skeptical than the British, and elsewhere, British levels of skepticism on the E.U. are prevalent. The United States and China watch with concern, as Europe puts the values of Hayek at risk in his own name.
If someone finds himself in a hole and continues to dig, it’s called cognitive dissonance. It may be that in the long run, the method of the Swabian housewife [Angela Merkel] is the best.
But in the long run, as Keynes said, “we’ll all be dead.”
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