US Dynamism Threat to Europe

[jbg]

One of the reasons why the "New World" is such a great place is its economic dynamism. The recent Nobel prize in Economics rewards a leading writer and thinker about this dynamism, Columbia University's Edmund "Ned" Phelps (link).

This coincides with my pet views about the New World, that the dynamic, innovative people largely left Europe in disgust at their inability to move ahead, trapped behind the elites. France blew its chance, with the Revolution and its chaos and violence, to join the classically liberal world that was being created in America. It became a statist, schlerotic successor to the caste-driven monarchy it replaced. Similar things happened throughout Continental Europe. Thus, Europe stagnated when its one-time boost of economic vitality from exploiting its overseas colonies evaporated.

Now, in the form of the UN and Kyoto, Europe seeks to re-impose the shackles of statism (modern label "market socialism") on the US, Canada and Australia. It is no wonder that the Canadian forces supporting Kyoto emerge largely from Quebec, through Desmairis and Strong. Quebec has largely inherited the statism of France, and similarly fears unshackled market activity.

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October 10, 2006 Edition > Section: Editorials > Printer-Friendly Version

A Nobel for New York

New York Sun Staff Editorial

October 10, 2006

URL: http://www.nysun.com/article/41268

It's hard to think of a more delightful and satisfying piece of news than word that the Nobel prize in economics has gone to Columbia University's Edmund "Ned" Phelps. He and his wife Viviana are not only wonderful individuals, as we learned on several occasions in the past few years, but in a career spanning more than four decades, there are few economic puzzles to which Mr. Phelps has not turned his intellect. He earned the prize for his work on the particular problems lying at the intersection of monetary policy, inflation control, and employment, but for the past few years he has been speaking regularly about the importance of that quality, which almost defines the city where he and Viviana have made their home — "dynamism."

He is almost like a great painter in the perceptiveness with which he sees things over which others gloss. In an interview not long ago with our A.L. Gordon, Mr. Phelps described New York's proliferation of pizza parlors as "an economist's model of competitive behavior." His ability is to detect economics at work just about anywhere. Recently he has been turning his eye to capitalism, especially as head of Columbia's Center on Capitalism and Society. He started down this road in the early 1990s at the same time Russia was throwing off communism. Aware that Russia was on the verge of choosing either European-style market socialism or American-style capitalism, Mr. Phelps realized that no one had undertaken serious study of capitalism in more than a generation.

*SNIP*

This is no doubt how Mr. Phelps latched onto the importance of "dynamism," which can be defined loosely as the qualities in a country's economic system that create work, allow talent to shine, and encourage creative problem solving. Mr. Phelps has recognized that America's dynamism has been the key to its economic success, while many European countries have stalled for lack of it.

*snip*

As the Web site of Mr. Phelps' Columbia center puts it, he and his colleagues "are united in believing it is time for economics to go beyond the mainstream models of markets to a serious study of capitalism — to the questions about its dynamism and its stability and how capitalism compares in these respects with its rivals, corporatism and market socialism."

*snip*

It can't be a coincidence that a New Yorker would be one of the most enthusiastic scholars of dynamism in economics.

[jdobbin]

One of the reasons why the "New World" is such a great place is its economic dynamism. The recent Nobel prize in Economics rewards a leading writer and thinker about this dynamism, Columbia University's Edmund "Ned" Phelps (link).

What a weird thing to backslap America's greatness at receiving a European prize.

[jbg]

One of the reasons why the "New World" is such a great place is its economic dynamism. The recent Nobel prize in Economics rewards a leading writer and thinker about this dynamism, Columbia University's Edmund "Ned" Phelps (link).

What a weird thing to backslap America's greatness at receiving a European prize.

That shows that his work is truly great; that the Europeans admired his work enough despite its anti-Europe slant.

[jdobbin]

That shows that his work is truly great; that the Europeans admired his work enough despite its anti-Europe slant.

And you have used the prize as a measure to crow and make your own anti-Europe statements.

A Nobel is a personal acheivement in science and arts and peace. They have been won by many nationalities working in a variety of countries.

You have used it as a measure to say how everyone is inferior to the U.S.

[Figleaf]

l

Edited July 19, 2007 by Figleaf

[jbg]

... my pet views about the New World, that the dynamic, innovative people largely left Europe in disgust at their inability to move ahead, trapped behind the elites.

There may be a certain chauvinistic satisfaction in you theory, but it's factually dubious since:

-the numbers migrating from any country were never sufficient to account for a significant bulk of any 'type' of person,

-substantial percents of innovative people could not have migrated from the countries that had no colonies; and

-there is little reason to credit many of the known migrants with any special particularly innovative nature (puritan exiles, starveling peasants).

It is more likely that the openness of the developing society is the explanation rather than inate traits of the people.

To the contrary, there was a considerable "brain drain" from countries such as Austria-Hungary. People like Joseph Pulitzer wound up in the US, not in Hungary for a reason. That is but one example.

Other examples are the female Jamaican/American partner in my firm, who is making the US, not Jamaica, a better place. The number of great artists, such as Stravinsky, and inventors/scientists, such as Einstein, that fled Europe and helped build the US as a great country are too numerous to list.

Now, in the form of the UN and Kyoto, Europe seeks to re-impose the shackles of statism ...

Bupkiss and rank rightist paranoia. America created the UN. Kyoto isn't a"statist' measure. And Europe has no desire to 'impose' anything of the kind.

Then why did they pick 1990, Europe's peak, and the same year as the US was in recession as a base year? That gave Europe a considerable free pass since, with East Germany's industrial implosion, and matching declines in Hungary, the Czech Republic, Slovakia and Poland, dropped Europe's emssion levels considerably between 1990 and 1992. The US began a long boom around that time, ensuring that the cutbacks to reach a level 25% (or whatever the number is) below 1990 levels would be crippling. The point I am making is that Kyoto is a dagger aimed at the US economy, by means of forcing disproportionate US reductions.

It's hard to think of a more delightful and satisfying piece of news than word that the Nobel prize in economics has gone to Columbia University's Edmund "Ned" Phelps. He and his wife Viviana are not only wonderful individuals,....

Funny basis for a prize in economics!

You shredded the sentence. The paragraph reads:

It's hard to think of a more delightful and satisfying piece of news than word that the Nobel prize in economics has gone to Columbia University's Edmund "Ned" Phelps. He and his wife Viviana are not only wonderful individuals, as we learned on several occasions in the past few years, but in a career spanning more than four decades, there are few economic puzzles to which Mr. Phelps has not turned his intellect. He earned the prize for his work on the particular problems lying at the intersection of monetary policy, inflation control, and employment, but for the past few years he has been speaking regularly about the importance of that quality, which almost defines the city where he and Viviana have made their home — "dynamism."

... "dynamism," which can be defined loosely as the qualities in a country's economic system that create work, allow talent to shine, and encourage creative problem solving.

Sure, if you choose to define it that way.

How else would you define it? Certainly, a land which had no government-created church, no guild or caste systems, no governmentally created monopolies in most fields encouraged innovation and imagination more than Europe could back in the day, or even now.

Mr. Phelps has recognized that America's dynamism has been the key to its economic success,...

That's not much of an insight if you start by defining dynamism as economic potential to begin with!

And your point?

[Figleaf]

ll

Edited July 19, 2007 by Figleaf

[jbg]

My point is that that writer seems to be impressed with mundane and obvious observations.

Mundane and obvious. Yes. But widely ignored by people who consider themselves above the real world? Also, yes.

[jdobbin]

Mundane and obvious. Yes. But widely ignored by people who consider themselves above the real world? Also, yes.

I forgot to ask why is U.S. dynamism a threat to Europe. Does the U.S. intend to invade?

[jbg]

Mundane and obvious. Yes. But widely ignored by people who consider themselves above the real world? Also, yes.

I forgot to ask why is U.S. dynamism a threat to Europe. Does the U.S. intend to invade?

Competitive and commercial threat, as well as threat to whatever slim standing Old Europe has to world power status.

[jdobbin]

Competitive and commercial threat, as well as threat to whatever slim standing Old Europe has to world power status.

I don't know that Europe even looks to challenge the United States really. Most consider the U.S. an ally. There is only one superpower. Do you think it should be the policy of the U.S. to rub it into everyone's face?