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by John Brian Shannon | August 30, 2016
Europe is at a crossroads and it’s time to make some decisions
Very conveniently, however, there are really only 3 problems with Europe.
I: The trickle-up economy continues to move trillions of dollars out of the bottom 4 quintiles and place it into the hands of the top quintile. This remains a recipe for failure, and the longer it continues the more draconian the solutions will need to be.
In 2016, half the world’s wealth is concentrated into the hands of the 1% — but by 2030, three-quarters of the world’s wealth will be concentrated into the hands of the 1%.
That’s wholly unsustainable. And nobody is even talking about it.
Unless addressed, Record Inequality will become Social Breakdown. And that will be the end of Europe as we know it.
II: Globalization is a truly wonderful thing. It continues to bring cheap goods to consumers since the Arab Oil Embargo in 1974, which caused millions of Americans to buy cheaper, more fuel efficient cars. That was the beginning of it, but the flood of electronics, textiles, and other goods soon followed.
For one such example of this; Each iPhone would retail for over $2000. with some sources asserting each iPhone would cost $3000. if manufactured in the United States.
But globalization has piggy-backed on Record Inequality to the detriment of workers and families in the West and it looks like (however fairly or unfairly) ‘The People’ are sick of globalization.
Declining living standards due to Inequality and Globalization have ‘The People’ thinking that change is necessary.
And change will come. The People always get their way. Maybe not with Perestroika and Glasnost, but the will of the people eventually becomes reality.
III: “You are leaving the American Sector”
We all remember those signs in postwar Europe. But what is actually happening is that America is leaving the American Sector in Europe.
Yes, America has realized that 58% (and growing) of all global trade is happening in the Pacific and the Americans are lowering their commitment to Europe and the Middle East.
Europe should be all grown-up by now, and the Middle East is a rambunctious, late-teenage, regional power. You should try to get along.
Prior to the Brexit referendum, the normal course of events would have been for the U.S. to become the Pacific Power and for the EU to become the Atlantic Power.
However, for that to happen, the EU needed Britain (which is by definition) the world’s seafaring nation and Britain is leaving the EU.
Consequently, history is still happening as the logical course of action post-referendum is for the UK to become the dedicated Atlantic Power, while the EU becomes the dedicated Mediterranean Power.
And that means strong (and fair) linkages with MENA nations and it means a strong invite to join the EU for every single southern European nation.
As 97.1% of Crimeans voted to rejoin Russia, it also means ‘Hands-Off Crimea’ but either Turkey or Ukraine (sans-Crimea) will eventually join the EU. But not both.
Russia won’t allow the EU to have both, so choose the option you prefer and get it done with as little upset as possible. The EU already has too much on its plate — troubles with Russia is the last thing the EU needs — especially in view of decreased American commitment to Europe.
The next 10 years will be a vulnerable time for the EU; Meaning, this is not the time for the EU to go shooting itself in the foot with a Russian gun.
Europe has only three problems. The ways I’ve outlined are not the only ways to solve them. However, they align with what is already happening.
What I’m saying, is that instead of governments being steered by events European leaders need to steer the thing even if it means continuing on with what was already going to take place anyhow.
a) Friendly divorce with Britain.
b) EU lowers Atlantic commitments and ramps up linkages and commitments in the Med and MENA.
c) All southern European nations join the EU.
d) Choose either Ukraine (sans-Crimea) or Turkey and make one of them an EU nation, ASAP.
e) Friendly relations with Russia are imperative — if the present leadership can’t get it done, Fire Them and get new leaders — it’s that important.
f) Friendly relations with the Middle East (stop bombing your neighbours)
g) Address Inequality in no uncertain terms.
h) Stop using the word globalization and seek Win-Win bilateral trade agreements exclusively, where that trade actually benefits both sides — instead of just dumping your goods in other countries and getting the loot. You need (true) Interdependence instead of Globalization.
i) Harmonize EU economic policies around the best existing model in Europe (Norway) where deficits are limited to 4% of GDP, plan for a 3% unemployment rate, free university education for residents, low crime rate, high productivity, very high SPI and UN Happiness Index scores (and those two metrics drive all other positive stats) revenue surpluses directed to a sovereign wealth fund, and so much more.
These are not big challenges compared to the challenges faced by WWI and WWII leaders, and by leaders in the immediate postwar era. These are tiny challenges.
But these challenges will require persistence by leaders who can keep the main objectives in the forefront of their mind, even as (seemingly) everyone else wants to go in different directions.
The question is not; “Does the EU have good leaders?” (Of course it most certainly does or the EU wouldn’t have ever existed, nor would it still remain)
The question is: “Does the EU have the leaders it needs to actually accomplish the remaining goals?”
- Europe’s Last Chance (Project Syndicate)
by John Brian Shannon | August 9, 2016
Recent reports about immigration in the EU suggest a real macroeconomic benefit to welcoming millions of refugees and economic migrants into the country
And that’s true. Even poverty-stricken refugees consume goods and services.
If we look at the German example; One million Middle Eastern refugees have been accepted into Germany since 2010 and all of them eat food, pay rent, pay electricity bills, take the bus, buy clothing, go to movies — and in many other ways add revenue to the economy.
If each of those million refugees spend 10 euros per day (equal to their daily food spending) that’s 10 million euros per day. Totalled, their monthly food spend equals 300 million euros in Germany alone.
If we extrapolate the German example further, we see that almost everything in Germany has a sales tax attached to it, and for those that have become employed, they’re paying income tax on their earnings.
Therefore, Germany is earning nearly 1 billion euros per day from their 1 million refugees
Of course, there are the high costs of accepting refugees and some may remain on social welfare programmes for as long as 2 years. German taxpayers pay for that. But after the 2-year mark, it’s all good.
No wonder Chancellor Merkel looks at immigration with such optimism. From an economic standpoint Merkel is 100% right; It really is the best thing for Germany. A brilliant but domestically unpopular policy by one of the greatest Chancellors in German history.
And let’s also recognize that this latest wave of immigrants is additional to the existing German immigrant pool — the first wave of which began in the 1970’s, and that generation are now a cohort of decent, hardworking, and family-oriented people. A benefit to the German economy almost every day since they arrived.
It’s not all Apple strudel and yodeling in Germany, however
Crime is much higher due to those massive levels of immigration. In Germany, girls can’t even attend a women’s music festival without a high probability of being molested by immigrant men. And the same holds true throughout the EU, especially in Sweden (of all places) and in Greece.
So what’s the point? Gain more in taxes so that women must hide in their homes?
That’s a bad deal for half the population, the female half.
Thus far, the lack of leadership on what is expected of new arrivals to the EU is astonishing and breathtaking all at once.
Refugees and economic immigrants from Day 1 of their arrival in Europe, should’ve been handed water bottles and pamphlets (written in their language) describing the rules of European culture, the rights of the person in EU society, the culture of respect for law and order — and not a gloss-over job but a poignant list of laws and societal norms that must be adhered to while travelling or living in Europe.
And printed in bold letters front and back of the pamphlets:
“It’s not your *right* to emigrate to our countries, it’s a *privilege* therefore consider yourselves guests while in our countries.”
Would you allow a guest to your home to wear muddy boots and to walk all over your expensive carpets and furniture? Obviously not.
Then neither should you allow your guests to molest your girls, rob subway passengers, and engage in rioting and looting.
Nor should we allow immigrants (or anyone) to defile EU culture — culture being the mass of our thoughts, brought into the light.
“I will not let anyone walk through my mind with their dirty feet.” — Mahatma Gandhi
It’s a very human thing to help people experiencing hardship and fleeing from countries due to conflict or famine there. The fact that we still do this (although not as well as in prior decades) gives hope for humanity.
But it’s been bungled up til now in the EU and it needs to be fixed. ASAP.
Finally, refugees should be given a temporary landed immigrant card (a photo ID) that allows them to stay in the EU for up to 4 years
After that; ‘It’s time to go back home and rebuild your country, with the skills, money and experiences you’ve acquired during your time in the West.’
European countries should now, even at this late stage, attempt to:
1) Educate refugees/economic migrants about European legal and cultural standards, from Day 1 of their arrival.
2) Continue to provide the normal social benefit for each adult, until they find a job.
3) Continue to provide safe housing until reasonable accommodation can be found.
4) Continue to monitor those people to make sure they are finding services, housing, jobs, and are not being targeted by Middle Eastern ‘mafia’ types within their own community.
5) Provide a free airline ticket at the 4-year mark to allow them to return to their home country. If they don’t want to return to Syria (for example) they could exchange their ticket for another of similar value (to Cairo, for example)
6) By accepting and paying for the living expenses of refugees and economic migrants (where they don’t have their own funds) for four years, and by educating them to Western norms, and by helping them to find safe shelter and jobs, etc. it’s truly a privilege for those people to be in Europe, and they should conduct themselves accordingly.
7) If not, they should be deported as soon as they are convicted of any crime (and obviously, their 4-year pass cancelled)
Every day, we teach others how to treat us
If we teach others that it’s acceptable to walk into our homes wearing their muddy boots and to walk all over the carpets and furniture, we deserve everything that we get from those people.
If we (gently) teach them about the rules of our house and provide the support they need, we are teaching them that we’re their benefactors and that we’re people to be respected.
Thus far, we’ve been teaching the refugees the wrong things, and they’ve responded in kind. (Input = Output)
It’s a failure of vision and it’s a failure of leadership. And the experiment with mass immigration flows from the Middle East will end in the failure of some EU member nations.
We’ve already seen blowback from this mishandled affair via the Swiss voting in a 2014 referendum to leave the EU, and Brexit in 2016, with surely more exits to follow.
It’s a problem that won’t go away until EU leaders address the fundamental problems of mass migration, problems which (in the absence of proper guidance) begin on Day 1 of a refugee’s arrival.
- Migration Fact vs. Migration Fiction (Project Syndicate)
- It’s not only Germany that covers up mass sex attacks by migrant men (The Spectator)
Bonus Graphic: A Snapshot of the European Migrant Crisis in 2015
by John Brian Shannon | July 3, 2016
“The measure of a society is found in how they treat their weakest and most helpless citizens.” — former President of the United States, Jimmy Carter
And in the UK, the vote on that was June 23rd. The result is there for all the world to see.
Had a mentally disturbed man not gunned down MP Jo Cox, the Brexit win might’ve been 70 percent.
Regardless, 52 percent of Britons said EU membership isn’t working for them, in one way or another.
And this is the whole point; If you’re a 1-percenter or an elite, the EU is a truly wonderful place to live. I’d have to call it an almost ‘unparalleled’ existence, living in historic Europe, beautiful Europe, a continent full of amazing cultures and such technological prowess and so much more(!) that it would take a year-long video presentation just to cover the basics.
But if you’re a ‘working stiff’ in the EU, it’s not so good.
OF COURSE, the economic problems in the EU and other Western nations, are globalization-induced. It’s so apparent it’s beyond all argument.
Fully half of the Brexiters angst could be traced or blamed on the follow-on effects of globalization.
That doesn’t give the EU governance architecture a ‘free pass’ however — on the contrary — the EU is one of the main ‘pushers’ of the globalization drug, and with that (good) drug come the (negative) side-effects;
Which are; the offshoring of jobs, higher unemployment, more competition for jobs, massive immigration / ghettoization, higher crime rates, higher societal costs (including, but not limited to; policing, court, incarceration, property damage, and intangibles like ‘how safe’ citizens feel in their own city) also higher traffic flows in airports / shipping ports / highways / and in cities — all of which suddenly require massive upgrades to handle the increased traffic. And so much more than that short list.
I’m the first to agree that the thing we call globalization is a truly wonderful and great thing! But the job is only half-done.
Globalization has created a permanent class of poor people (whose jobs were shipped to Asia, and many remaining jobs were taken by economic immigrants) a situation which has yet to be properly addressed in the EU.
When a society isn’t working for 2/5ths of the citizens, it isn’t working. Period. Full stop. Until the day it’s rectified.
And that’s what I’m hoping for. I’m waiting for the mandarins in Brussels (who can’t be fired by ‘The People’ because they’re unelected) to begin to address the shortcomings of their governance architecture — of which globalization is a major platform.
They should’ve been proactive all along, instead of spending hundreds of thousands of person-hours on what ingredients bread may, or may not have. (How ‘Soviet’ of them) I hear they’re working on the rules for shoe factories next week.
It’s difficult to believe that some people can’t understand how Britons could vote for Brexit.
- Either the EU must begin holding EU-wide elections for their highest officials (to allow ‘The People’ a chance to ‘vent’ when things aren’t going well) instead of choosing to ‘_exit’ the EU,
- the unelected mandarins must begin to address the negative aspects of globalization for the bottom two economic quintiles (2/5ths) of the EU’s citizenry.
Otherwise, the whole thing will eventually fail — with nations continuing to join the EU, but with more leaving than joining.
Were a similar referendum to the UK referendum held in every EU nation next week, I’d expect that 52 percent (or more) of EU citizens would vote to ‘_exit’ the European Union.
And that would be a crying shame. But it wouldn’t stop it from occurring.
There are few who support the European project as sincerely as I, but there comes a time when we must be candid about successes (many) and failures (only two; But causing two other failures, for a grand total of four failures) and with more failures likely.
The failure to address the;
(1) negative aspects of globalization, is caused by;
(2) a democratic deficit in Brussels, which caused;
(3) Swiss citizens to reject EU membership in 2014, and;
(4) British citizens to Brexit in 2016.
Stay tuned for more such failures — and all of it will be on account of the democratic deficit of the eurocrats in Brussels and their failure to address the negative aspects of globalization.
- Football, Brexit, and Us (Project Syndicate)