Jakob Augstein is the quintessential European version of what would be referred to in the US as a latte Liberal. Heir to what one surmises was a significant fortune from his adopted father, the Amerika-hating founder of Der Spiegel magazine, Rudolf Augstein, he nevertheless imagines himself the champion of the poor and downtrodden. His writing is certainly not original, but he is at least a good specimen of the type for anyone interested in European ideological trends. His reaction to the recent election in France is a good example.
As those who occasionally read a European headline are aware, that election resulted in the victory of socialist Francois Hollande over his austerity-promoting opponent, Nicolas Sarkozy. While certainly noteworthy, such transitions are hardly unprecedented. No matter, the ideological good guys won as far as Augstein is concerned. He greets Hollande’s seemingly unremarkable victory with peals of the Marseillaise and Liberty leading the people:
It is not just a piece of political folklore that France is the land of the revolution. No other European country has such a lively tradition of protest. La lutte permanente, the constant struggle, is part and parcel of the French civilization. In France, the centralized state historically formed an alliance with the people against feudalism. Now the time has come for that to happen again. The fact that the French picked this particular time to vote a socialist into the Elysee Palace is no coincidence. A revolutionary signal will now go forth from France to all of Europe. The new feudal lords who must be resisted are the banks.
Great shades of 1789! Break out Madame Guillotine. What can account for such an outburst of revolutionary zeal in response to what is ostensibly just another garden variety shift from the right to the left in European politics? It is, of course, “austerity,” the course of belt-tightening prescribed by Sarkozy and his pal, Germany’s Chancellor Angela Merkel, for Greece and some of the other more profligate spendthrifts in the European Union. Has austerity worked? Augstein’s answer is an unqualified “No.”
…Can one overcome a recession by saving? The answer is: No. those who save during a recession deepen the recession.
I personally rather doubt that anyone knows whether austerity “works” in a recession or not. Modern economies are too complex to simplistically attribute their success or failure to one such overriding factor and, in any case, serious austerity measures haven’t been in effect long enough to allow a confident judgment one way or the other. Certainly the opposites of austerity, such as the recent “stimulus” experiment in the US, haven’t been unqualified successes either, and have the disadvantage of leaving the states that try them mired in debt.
No matter, Augstein goes on to teach us some of the other “lessons” we should learn from the events in France. It turns out that some of these apply to Augsteins’s own country, Germany. The German taxpayers have forked over large sums to keep the economies of Greece and some of the other weak sisters in Europe afloat. Germany’s robust economy has served as an engine to pull the rest of Europe along. German’s should be patting themselves on the back for their European spirit, no?
Not according to Augstein! As he tells it, what Germans should really be doing is hanging their heads in shame.
The Germans are poster boys of the market economy. Never have interest rates been more favorable for Germany. It’s a gift of the market at the expense of the rest of Europe. She (Merkel) isn’t concerned about the European political legacy of Adenauer and Kohl. Those are such western ideas, that mean little to the woman from the east. Driven by cheap money from the international finance markets, the German export industry has scuttled European integration – and Merkel lets them get away with it.
Ah, yes, the socialists of the world have no country. We’ve heard it all before, haven’t we? If you’re successful, you must be evil. The proper response is guilt. Poor Germans! They just can’t ever seem to catch a break. Somehow they always end up in the role of villain.
According to Augstein, without the support of France, Germany and her “saving politics” are now isolated in Europe. What’s that supposed to mean? That Germans are now supposed to fork over even greater funds, this time with no strings attached in the name of “European integration?” If I were a German taxpayer, I know what my response would be: “Let the other Europeans spend and spend to their heart’s content, just as long as they don’t reach into my pocket to do it.”
Well, we’ll just have to wait and see how this flight back to socialism turns out. Who am I to say? I’m no economist. There’s an election in Germany next year. If the socialists return to power there as well, things might really get interesting. We’ll finally find out just how European socialists plan to go about ending austerity after they’ve run out of other people’s money to spend.