(Newsweek) Niall Ferguson on why the Eurostorm isn't ending anytime soon

Most Americans are bored or baffled by Europe. Try explaining the latest news about Greek politics or Spanish banks, and their eyelids begin to droop. So, at the end of a four-week road trip round Europe, let me try putting this in familiar American terms.

Imagine that the United States had never ratified the Constitution and was still working with the 1781 Articles of Confederation. Imagine a tiny federal government with almost no revenue. Only the states get to tax and borrow. Now imagine that Nevada has a debt in excess of 150 percent of the state’s gross domestic product. Imagine, too, the beginning of a massive bank run in California. And imagine that unemployment in these states is above 20 percent, with youth unemployment twice as high. Picture riots in Las Vegas and a general strike in Los Angeles

Now imagine that the only way to deal with these problems is for Nevada and California to go cap in hand to Virginia or Texas””where unemployment today really is half what it is in Nevada……This is pretty much where Europe finds itself today.

Read it all.

print

Posted in Uncategorized

One comment on “(Newsweek) Niall Ferguson on why the Eurostorm isn't ending anytime soon

  1. BlueOntario says:

    [blockquote]If Alexander Hamilton were alive today, he’d advise the creation of a federal system much more like the U.S. Constitution than the unworkable Articles of Confederation.[/blockquote]
    If Alexander Hamilton were alive today he’d look at the attempts at unifying Europe as madness. Unified around what? A bank? The league of translators? The Eurail Pass?