While the world is watching European governments and banks, policy makers and pundits are failing to recognize the good things about the crisis.
#1 - The free market is strong. European government debt, which has lost confidence in recent years due to the thresholds being reached that indicated it could never be paid back, is being priced according to RISK. This is a fundamental function of the free market - so business and markets have a say in the governance of the countries. With the internationalisation of risk and power, markets are responding faster and nations are competing through economic means. This is a good sign for the future of the species.
#2 - Europe is taking its medicine BEFORE its too late. The post-WWII baby boom has affected demographics across the developed world, and because of the earlier retirement age, Europe is an example of the burdens baby boomers will be on the system. The good thing is that the situation is not dire and austerity, while difficult and traumatic to many is the best way forward. The neo-socialist sentiment that the government can pay everyone to do nothing is dwindling in the face of vivid economic proof to the contrary. The free market needs to be more FREE and the Internet is paving that way.
#3 - Europe will recommit to the EU and the Eurozone - the crisis will bind Europe closer together. This is an important step because the Great Powers of today have massive populations and if Europe is not united, they will lose their economies of scale and eventually reduce their global influence. If they can sort out their issues - most notably the competition gap that creates fiscal differences - they will end up in better shape in the future.
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