Goin' Euro

I'm not sure that the Republicans should do too much gloating just yet after the resounding victory in November. President Obama promised that he would drag us to a more European model of society, and so far the evidence suggests that he has been remarkably successful. The Euromodel is marked by permanent high unemployment, slow growth, a pusillanimous foreign policy (especially in the face of ruthless dictators), a lack of initiative and a permanent entitlement class consisting of both government workers being paid above market wages and people that don't work at all. But the most salient symptom of goin' Euro is that you develop a penchant for making economic and foreign policy decisions by committee.

We're there.

Government spending is now 25% of GDP, up from about 18% in the Reagan years (and streaking toward 27%). Unemployment is still above 9%, making this the most anemic recovery in terms of job growth in history. Despite the 900 billion dollar stimulus, private sector employment has barely budged. Almost half of our taxpayers don't pay income taxes at all. Despite Bill Clinton's assertion that "the era of big government is over," what we hear from Washington is the old Carpenters' tune, "We've only just begun."

But unlike the federal government, state governments can't just hand the bill to the next generation or print money. They actually have to balance their budgets. To do that on a permanent basis will require a restructuring of the cozy little relationship between the unions and their Democratic benefactors that has existed for decades. Unlike the private sector, there is no incentive to reduce costs or need to show a profit, so all that needed to occur was to keep feeding the unions and the only brake was a bond default or taxpayer revolt. Well, the taxpayers have revolted and Wisconsin is beginning to look like France and Greece when those governments tried to impose a little fiscal discipline.

The other indicia of going Euro is the drive toward decision by committee. And under Democratic rule, governing by committee is blossoming. Dodd-Frank and Obamacare has established scores of these things--- little cabals of pointy headed Ivy League graduates deciding how much banks may charge for overdrafts, what kind of rules there will be for buying and selling derivatives, what my health insurance must cover, and on and on. We now have new rules for the energy output of microwave ovens and the old toy, the Easy Bake Oven will soon be illegal.

Our foreign policy is even out Euroing the Europeans. You know it's pretty bad when France shows a stiff spine than we do. The fall of Mubaruk elicited tepid and guarded comments from the administration, carefully crafted in bureaucratese. And as Ghaddafi strafes and murders his own people, we implore him to "show restraint," write harshly worded letters through the U.N. and impose sactions. That'll show him. I'm sure Ghaddafi is trembling now. We are faced with the most momentus change since the fall of the Berlin Wall, with an opportunity (albeit with some risks) to advance the cause of liberty, and Mr. Obama is more or less M.I.A. I suppose he's used his quota of tough talk on Governer Walker. Last I checked, Libya was still on the U.N. Human Rights Committee.

So, before Republicans get too big for their britches, the evidence is that we're still being pushed into the European model--permanent high unemployment, slow growth, entitled classes, lots of committtees telling us how to live, and a timid foreign policy. Oh, and GDP came in at 2.8% last quarter, remarkably low for a post-recession recovery. How do I fill out the application for the EU?