Thursday, February 25, 2016

Thomas Piketty — A New Deal for Europe

We have a single currency with nineteen different public debts, nineteen interest rates upon which the financial markets are completely free to speculate, nineteen corporate tax rates in unbridled competition with one another, without a common social safety net or shared educational standards—this cannot possibly work, and never will.
Only a genuine social and democratic refounding of the eurozone, designed to encourage growth and employment, arrayed around a small core of countries willing to lead by example and develop their own new political institutions, will be sufficient to counter the hateful nationalistic impulses that now threaten all Europe.…
If France, Italy, and Spain (roughly 50 percent of the eurozone’s population and GDP, as against Germany, with scarcely more than 25 percent) were to put forth a specific proposal for a new and effective parliament, some compromise would have to be found. And if Germany stubbornly continues to refuse, which seems unlikely, then the argument against the euro as a common currency becomes very difficult to counter. Currently, a Plan B involving the abandonment of the euro is being touted by the far right, a policy that is increasingly tempting to the far left. Why don’t we start by actually giving a chance to genuine reforms that would make the eurozone work for the common good?
The New York Review of Books
A New Deal for Europe
Thomas Piketty
Translated from the French by Anthony Shugaar
ht Brad DeLong

7 comments:

Dan Lynch said...

Piketty has been smoking the same idealistic stuff as Varoufakis ?

I'm just not seeing the elites embracing democracy and progressive policies. It's easier to imagine them going down with their ship.

Neil Wilson said...

"Piketty has been smoking the same idealistic stuff as Varoufakis ?"

One world idealism has been the totem of the left since they all started smoking weed in the 60s. It was a reaction by that generation of people to the wars at the time and the wars that had gone before.

The evidence is building that it doesn't work. Because, guess what, humans are tribal.

In other news we are descended from apes.

Ralph Musgrave said...

"Piketty has been smoking the same idealistic stuff as Varoufakis?" I didn't know Varoufakis had any ideals apart from repeating the phrase "democratise Europe" like a demented parrot.

What he actually means by democratize Europe is that Greeks should have to right to "democratically" vote themselves piles of other peoples' money.

Matt Franko said...

"we are descended from apes"

I'm definitely not....

Matt Franko said...

Ralph only if the the other nations send them real goods to buy with it...

nivekvb said...

There was scientist once who said that we had descended from dolphins. I quite liked that.

Bob said...

Some people are descended from their own petard.