Spanish Socialism is Hampering Europe

Most of the economies of the European Union are slowly moving out of recession. Both Germany and France are boasting modest growth rates and they are pulling other countries, like Italy, on the road to recovery. There is one country that seems utterly incapable of keeping pace however and that is Spain.

Government stimuli have been of some help but the Spanish national bank warns that early signs of recovery are misleading: because imports have fallen even more dramatically than exports have, BNP-figures might appear optimistic but in truth, the country lacks a solid foundation for economic growth.

During the ten years between 1997 and 2007 the Spanish economy was almost exclusively driven by a rapidly expanding real estate market, producing a stable growth rate of 4 percent annually. In the same period the country attracted almost four million immigrants. Now that construction has come to a standstill many of these people are moving away while millions of Spaniards are left unemployed with so much as two million living off unemployment benefits.

Spain’s prime minister Rodríguez Zapatero came to power in 2004 promising to diversify the country’s economy. He intended to invest in renewable energies, bioengineering, high-speed infrastructure, construction and logistics to encourage innovation and the emergence of a solid services economy. Now, five years later, the prime minister continues to repeat his promise will little progress made in the meantime.

“My government’s ambition is to make this an innovative, creative, entrepreneurial country while upholding the social welfare state,” said Zapatero last July. He foresaw no trouble combining the two at the time. “Some people will say that a social welfare state and a competitive economy are incompatible, that innovation is incompatible with workers’ rights. They want to deregulate workers rights, deregulate social rights. That is exactly the same tune as people who say we have to deregulate the financial markets and I do not dance to that tune.”

As a result, Spain faces both an enormous trade deficit and a deficit on the state’s budget of almost 10 percent with the public debt, of course, mounting fast. Zapatero nevertheless counts on foreign investments to carry his country out of recession although no one in their right mind would entertain the notion of investing in Spain nowadays.

It’s not just money from abroad that is lacking however. Spanish banks are hesitant to borrow which is hurting small businesses and the whole of the real estate market because people can’t a mortgage.

Today, finally, the Spanish government announced long awaited labor market reform after unemployment reached a staggering 19.3 percent in October this year. Zapatero proposes to provide for greater flexibility, reducing high dismissal costs but also reducing working hours to preserve employment: a controversial step that seems unwise considering how little it did to once ail Britain’s economy during the 1970s.

Spain’s lack of recovery left the European Central Bank with a difficult choice to make. As the French economy grows once more it is expected to see inflation go up above the European average next year. France has proposed to temper it by increasing the interest rate (a step Australia and Norway have already taken) although this would hurt the Spanish economy terribly by further depriving it of credit. The Bank had to chose between serving France, whose recovery is helping other European economies also, and supporting wearisome Spain because its own government lacks the political will to do so. For the time being, it elects do to the latter, maintaining the interest rate at 1 percent.

Dean Rehabilitates Socialism

In a speech delivered in Paris, France on May 4, 2009, Howard Dean, until January of this year the chairman of the Democratic National Committee, declared that the debate about whether to “have” capitalism or socialism is over. “We are going to have both,” said Dean.

After comparing President Obama with John F. Kennedy and taking pride in the multiculturalism of modern-day America, Dean claimed that both capitalism and something he calls “communitarianism” are part of “human nature.” According to Dean, all people feel the urge to care for others besides themselves or, as he puts it, all want to be “part of a community.”

Apparently Dean sees no contradictions between capitalism and socialism for he innocently suggests that America ought to figure out “which proportion of each” it is going to have “in order to make this all work.” In Dean’s words, this is the “sensible” thing to do.

In fact, there is nothing sensible about it. Capitalism and socialism are almost perfect opposites of each other and cannot coexist. Where the first depends on the individual, the second is concerned only with the wellbeing of the collective; where the first promotes ingenuity, the second demands conformity; where the first favors freedom, the second relies on cohesion because altruism, regardless of what Dean might say, is not part of human nature. Rather altruism, although the foundation of any collectivist ideology, goes against it; it goes against the most primal human will: the will to live.

Socialism has held so many nations under oppression; it has condemned so many people to self-destruction and death that is almost unimaginable that an American of all people, a citizen of the very country that resisted socialism with reason and with force for half a century, should now champion it in blissful ignorance of its cruelties and hardships.

Whether you hold capitalism as a system responsible for the current recession or not, socialism is most certainly not an alternative. No socialist state has ever prospered economically for it denies the very human qualities that drive progress. Denying that is inexcusable.

India Matters

Reaffirming American relations with India was one of the few foreign policy successes of the Bush Administration. A nuclear power with an impressive but stable economic growth, India is already the South Asian superpower and likely to become more than that. It works with Brazil and Russia and even with China (the so-called “BRIC”) to strengthen its international position and it plays a pivotal, albeit an oftentimes overlooked, role in the Middle East.

President Obama was wise to invite his Indian counterpart Manmohan Singh for the White House’s first state dinner on November 24 — a clear sign that the current administration also intends for India to be part of its “multilateral” strategy. According to the president, India is “indispensable” in the building of “a future of security and prosperity for all nations.”

Singh, as finance minister during the first half of the 1990s, broke with India’s past of moderate socialism and instituted a series of reforms that carried the country out of recession. As prime minister, he continues to promote privatization and free trade while while investing generously in a massive campaign against poverty. Obama recognized these achievements when he declared that, “[a]s leading economies, the United States and India can strengthen the global economic recovery, promote trade that creates jobs for both our people, and pursue growth that is balanced and sustained.”

In another one of the president’s crusades, bringing proliferation to a halt, he also acknowledged the importance of India. “As nuclear powers, we can be full partners in preventing the spread of the world’s most deadly weapons, securing loose nuclear materials from terrorists, and pursuing our shared vision of a world without nuclear weapons.” Both countries have known the “pain and anguish of terrorism,” the president spoke, so they must stand together to “promote the development and prosperity that undermines violent extremism.”

Prime Minister Singh responded in kind when he opined that India and the United States are “bound together” by common values and a shared dedication “to meet [the] challenges of a fast-changing world in this twenty-first century.”

There is an elephant in the room that neither leader spoke of. America is investing in Pakistan to support its war on terror at a time when India and Pakistan are accusing one another of involvements in terrorist attacks in their countries. After fighting three wars the two countries are still engaged in something of a nuclear cold war. Pervez Hoodbhoy notes however on the New Atlanticist, that most of India “would like to forget that Pakistan exists.” Fast on its way to become a true superpower, India “has no need to engage a struggling Pakistan with its endless litany of problems,” according to Hoodbhoy.

That’s not how Pakistan sees it. Islamabad is by no means comfortable with India’s newfound American approval. The Obama Administration will have to carefully balance its commitment to Pakistan against its relationship with India. It needs the first to bring the war in Afghanistan to a successful end but once that’s done, India is really the onle country in South Asia that matters.

Will NATO Pitch In?

Responding to President Barack Obama’s renewed commitment to the war in Afghanistan, Secretary General Anders Fogh Rasmussen of NATO pledged 5,000 additional Western troops to support the 42,000 NATO soldiers already on the ground.

His promise seems a bit uncertain however. France and Germany announced that they will both wait until the Afghanistan conference in London next January before making a decision while Canada, Italy, the Netherlands and Poland, the only other NATO members, besides the United Kingdom, with more than a thousand troops stationed in Afghanistan currently, are troubled by rising opposition to the war effort at home. In fact, Canada and the Netherlands both intend to withdraw forces next year.

Poland has pledged an additional 600 troops nevertheless while of the remaining NATO partners only Slovakia, Spain and the United Kingdom appear willing to answer Obama’s call. The first have promised 250 forces each while the United Kingdom will add 500 soldiers to the 9,000-strong force is has already deployed in Afghanistan. (A figure that apparently does not include Special Forces.)

Cheney Takes Another Hit at Obama

President Barack Obama is projecting “weakness” because of his “agonizing” over whether or not to send more troops into Afghanistan, former Vice President Dick Cheney complains. “I begin to get nervous when I see the commander-in-chief making decisions apparently for what I would describe as small ‘p’ political reasons, where he’s trying to balance off different competing groups in society,” said Cheney.

After spending eight years more or less undercover Cheney has come out as a fierce critic of the Obama Administration especially where the wars in Afghanistan and Iraq are concerned — wars, of course, his administration launched and, arguably, mismanaged for years.

Cheney continues to question the president’s ability to steer the war in the right direction when he nags that, “[e]very time he delays, defers, debates, changes his position, it begins to raise questions: Is the commander-in-chief really behind what they’ve been asked to do?” Apparently, after neglecting the Afghan war throughout almost his entire two terms in office, now, Cheney is concerned with the soldiers on the ground.

Asked whether he believes that the Bush Administration bears part of the responsibility for the difficulties faced in Afghanistan today, the former vice president answered, “I basically don’t,” without volunteering to elaborate.

What he was willing to elaborate upon was Obama’s supposed weakness however. He called the president “far more radical than I expected” and correctly observed that Obama “campaigned against much of what we put in place.” We referring, of course, to the previous administration. “I think that our adversaries […] see that as a sign of weakness,” said Cheney. Traditional allies of the United States see it in a wholly different light however; they are extremely relieved to find a government across the Atlantic that is once again taking them seriously and treating them on equal footing. Denouncing that only demonstrates all the more what colossal foreign policy misjudgments the last Bush Administration made.

Cheney’s fear that Obama’s pondering encourages America’s enemies in the Middle East seems rather misplaced. A war of such importance as the one in Afghanistan demands a president that isn’t afraid to consider all of his options before making a decision. In fact, one-sided advice is probably what led George W. Bush to severely underestimate the magnitude of the war in the first place. So when Cheney accuses the president of using the war in order to score political points, he really ought to take a look in the mirror — and not just when it comes to Afghanistan.

How Disturbed Are You?

No, really, how disturbed are you? Disturbed enough to join a social movement? Maybe help out as a checkbook member? Perhaps you’re disturbed enough to go out and start your own social movement.

But wait a second — are you rich? You aren’t. Well, that may cause some difficulties. You see, the heavenly choir sings with an upper-class accent (as E.E. Schattschneider tells us), because clearly they are able to represent their interests better than you, shall I say, more “blue-collar” types. Read more “How Disturbed Are You?”

The Asian Naval Race

Last week, the Japanese Ministry of Defense announced they would construct a new class of helicopter destroyer — a typical Japanese military euphemism — as a part of the continuing modernization of Japans military capabilities. Complementing the already spacious Hyuga class, this new class will not only hold helicopters for anti-submarine duties but also be capable of refueling naval squadrons at sea and supporting amphibious operations.

The existence of ships that in everything but the name constitute light carriers is somewhat controversial, especially since the postwar Japanese constitution expressible forbids the country from possessing “land, sea, and air forces, as well as other war potential.”

Yet this article has been traditionally circumvented by the formation of the Japanese Self Defense Force, which, despite its deliberately non-threatening dogma, possessed the world’s seventh largest military budget in 2008. And while Japan is still somewhat bereft of offensive military capabilities, the latest decade has seen its forces partake in numerous expeditions abroad, from participation in the early stages of the occupation of Iraq to chasing pirates off the Somali coast. Read more “The Asian Naval Race”

Bloomberg’s Call for Repeal of Tiahrt

Mayor Michael Bloomberg of New York City has called for Congress to repeal the Tiahrt Amendment. A law passed in 2003 and made permanent in 2008 that Bloomberg claims is hampering the investigations of people such as Nidal Malik Hasan, the man who went on the shooting spree in Fort Hood, Texas.

The same Nidal Hasan was already under investigation for posting on the Internet that Muslims should rise up against America and was declared to be mostly harmless.

It seems Bloomberg’s real problem isn’t that the Tiahrt Amendment prevents the investigation of firearm related crimes. If it did, we wouldn’t know that Hasan had bought the pistol he used from a Gunshop in Keleem, Texas.

Bloomberg’s problem is that his group Mayors Against Illegal Guns have been trying to get their hands on confidential law enforcement data for their lawsuit against American firearms manufacturers. Read more “Bloomberg’s Call for Repeal of Tiahrt”

Republican Party Lost Direction

Many appear to agree that in spite of their increasing popularity in the polls, today’s Republicans are divided when it comes to their party’s future. After the evangelic surge under George W. Bush, the populist, anti-Obama rhetoric that is espoused nowadays by the likes of Glenn Beck, Dick Cheney and Sarah Palin fails to charm part of the conservative backbone that would like to see their GOP move back to the old-styled small government, free-market philosophies which used to make it great.

Just a few days ago, JD Roger quoted Ronald Reagan-biographer Steven Hayward when he declared the Republican Party “brain dead”. Hayward longs for the days when right-wing intellectuals as Allan Bloom, Milton Friedman and Francis Fukuyama fueled the party’s agenda with their writings on the accomplishments of Western-styled democracy, individualism and free-market economics. What we get instead, he complains, is ridiculous “birthers” and “tea partygoers” who are encouraged by blustering lunatics as Beck and Rush Limbaugh.

Writing for The Washington Post, Jon Cohen and Dan Balz explain in part why so many people turn to listen to these hysterics. Besides a strong anti-Obama sentiment, they write, there is actually little that holds the Republican Party together these days. Not even half of the people who identify as a “Republican” approve of the direction in which the party’s leadership is pushing them. Moreover, they don’t really know who their party’s leaders are supposed to be anyway. No more than two out ten people favor Sarah Palin while just 1 percent said former President Bush represented “the best reflection of the party’s principles.”

In spite of strong internal disagreement on issues as abortion and same-sex marriage, the Post states that most Republicans “see the party as paying too little attention to federal spending. Most strongly oppose the government’s use of hundreds of billions of dollars over the past two years to bolster the economy.”

Yet it was under the last Bush Administration already that government spending skyrocketed while Republicans in Congress today dare hardly to voice any criticism of massive bailouts and outright government takeovers of business. The economic downturn has apparently been able to silence even the staunchest of capitalists in Washington even though many Republican voters are protesting evermore loudly against further government intrusion in their private lives — and in their private businesses.

Will He Stay Or Will He Go?

Some confusing news from Washington today. The New York Times alleges that President Obama “plans to lay out a time frame for winding down the American involvement in the war in Afghanistan” while The Wall Street Journal reports that the White House has come up with a “revamped war strategy in Afghanistan that includes tens of thousands of additional U.S. forces and benchmarks for the eventual transfer of Afghanistan’s defense to the Afghan government.”

Next Tuesday the president is scheduled to meet with members of Congress before speaking at West Point where he will outline his exit strategy for the war. Apparently, the Times believes this signals a “winding down” of the American involvements in spite of the sending 30,000 extra troops.

According to an anonymous official, Obama “wants to give a clear sense of both the time frame for action and how the war will eventually wind down” although for now, it seems, we will see a lot more action first before anything winds down. There is no talk of even a time frame yet, let alone withdrawal. The Times‘ assessment therefore would seem rather premature at this stage.

Whatever the president says on Tuesday he is likely to be attacked for it from both the left and the right. Where the latter calls upon him to send in even more additional troops than he already will, Michael Moore suggest in The Huffington Post that Obama fire General Stanley McChrystal — even though just last May he replaced the previous commander, General David McKiernan for failing to implement a more irregular strategy. Firing another general just six months later seems rather like a bad idea but then again, Moore apparently has utterly no idea what the war is about.

I know you know that there are LESS than a hundred al-Qaeda left in Afghanistan! 100,000 troops trying to crush a hundred guys living in caves? Are you serious? Have you drunk Bush’s Kool-Aid? I refuse to believe it.

You better start believing it, Mr Moore. Obama might become a “war president” as you so dread, but he understands that the United States must persevere in Afghanistan. This war is of immense importance to maintain America’s credibility as well as the security of the region. That Obama remains determined to bring it to a successful end deserves praise for that reason.