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The Economist worries about the "Atlantic Gap" and unwittingly reveals much

by Jerome a Paris Sat Oct 3rd, 2009 at 09:24:42 AM EST

The Economist has yet another column moaning about more distance between Europe and the US and suggesting ominously that this is a bad thing.

But the arguments used are rather revealing - although maybe not of what the Economist would want us to focus on.

The main gripes are that (i) the Americans feel Europeans are not doing enough on Afghanistan and Iran and (ii) the Europeans are disappointed by Obama's policies on various topics.



From the American side, there is frustration that the Obama administration's multilateral humility has not been matched with more European help in Afghanistan, or a promise in every European capital to back tougher sanctions on Iran. (Yes, it looks as if they are building a bomb, goes the line in some places that do business in Iran, but if we stop selling things, the Chinese will just take our place.)

Beyond the usual casual accusations of a cowardly European dominated by lowly corporate interests (because no, that certainly doesn't happen in the US), and of Europe's lack of gratitude for Obama's change in behavior (we're asking "please" instead of ordering you, so you have no excuse to say no now), it is kind of funny to read this on the same day that one can find, in the WSJ, the following headline: France Plays Unaccustomed Role: Diplomatic Hawk, xith the following lead: Once the world's self-proclaimed international mediator, France is now trying its hand at pit-bull diplomacy with Iran.

The Economist does acknowledge that Americans are misreading Europeans on Afghanistan:


American diplomats insist that Europeans see a failed Afghan state as a direct threat to their security. That is not true. "A very small number" of European governments believe Afghanistan is on the front-line of the war on terror, says one senior Brussels man. Most sent troops just to maintain good relations with America. Europe's governments fear there is no strategy for winning the war but "some are afraid to tell the Americans the truth."

While they carefully stay away from stating that this "truth" is actually correct (it's only the claim of a "senior Brussels man," an eminently clueless or suspect category, of course), they do indirectly note the only thing which makes sense about the Afghan war: it's all about European fealty, and Europe's cowardice in confronting the US about a pointless - and lost - war.

More interesting, yet, is the commentary about Europe's unhappiness with the US: the article insists several times that Europeans are ungratefully failing to acknowledge American efforts at preaching multilateralism:


From the American side, there is frustration that the Obama administration's multilateral humility has not been matched with more European help in Afghanistan

(...)

In Brussels on September 30th America's assistant secretary of state for European affairs, Philip Gordon, warned the Europeans that the Obama administration needed something in return for its punt on multilateralism. If "in a year from now", Europeans have not decided to offer more help in Afghanistan and tougher sanctions on Iran, he said, "plenty of Americans will say, you know what, let's do it our way."

In other words, as noted above: we're no longer ordering you, just requesting you, to do stuff, so you have no reason not to do it - as if real multilateralism did not mean precisely the willingness to accept no for an answer, along with accepting to be bound by the same rules as others! "Let's do it our way," indeed. Requesting things used to be good enough in the good old days, when the odd "no" would be tolerated, but most of Europe did say "yes" usually. But after Bush, there's probably no going back to this without a rebuilding of trust. Acknowledging that other points of view exist is not enough, if they're still not listened to.

Then there's a funny broadside that's worth posting in full:


The EU is an elite, supranational project, and only indirectly democratic. This creates a structural problem whenever it talks to the Americans. Eurocrats often get on well with administration officials (another secret is that European bigwigs found the second-term Bush lot congenial to deal with). The bigger problem is usually Congress, which acts as a lightning rod for American popular opinion. In Europe no such partisan democratic body exists (the European Parliament is more remote from voters and less powerful than Congress, and MEPs live in a warm bath of mushy conventional wisdom). Euro-types boast that the EU stands for stirring values like leadership on climate change or opposition to the death penalty. It is less clear that you could win a mandate for such things from European voters, which may be why they are not directly asked.

If people in Brussels struggle to understand how troublesome Congress can be to an American administration, they should try this mental aid. Congress is a bit like France: prickly, status-obsessed, ruthless in defending national interests and addicted to subsidies for special interests such as farmers or industrial champions. Both are ambivalent about free trade: as the Copenhagen climate talks near, it is France and certain American senators who want to talk up "green tariffs" in case China and India duck binding limits on carbon.

All the Economist's bogeymen are there in two short paragraphs:

  • the usual comments about the EU being "elitist" and "undemocratic" - from the smugest and most self-righteous column in the most unabashedly elitist newspaper around, and in the same paragraph as a withering explanation of why "democratic" Congress is hopelessly wrong on everything that matters;

  • the traditional proxy of "French" for "evil" - Congress is a little bit like France: arrogant, PITA, and wrong on everything;

  • additinally, "euro-types" fit a profile which is regularly used for liberals - out of touch, with grand but unrealistic ideas, naturally elitist and self-absorbed, and too cowardly to admit they secretly like America, even Bush's;

Add in more than a bit of projection (accusing the MEPs of living in "conventional wisdom" - obviously not the kind that the Economist propagates - and, again, of elitism) and you pretty much have the mission statement of the Economist.

Finally, a few more paragraphs to put Europeans back in their place:


You can overstress biography, but a Kenyan-American raised in Hawaii and Asia could be forgiven for remembering that Europe was a continent of colonial powers before it proclaimed itself a beacon of moral values, and for considering the Pacific to be just as strategic as the Atlantic.

 (...)

Americans may not realise how horrible their health-care debate looks to outsiders. It is not just that it is blocking other legislation. The partisan nature of today's Congress looks mad to Europeans brought up to value consensus. Europeans also know that "European-style" health care does not include death panels prescribing euthanasia for grannies and are offended by the way such tosh is alleged in America.

Europeans can NEVER claim the moral high ground - remember, they were colonizers, their (centuries old) past limits their future in a way that the invasion of Iraq or the legitimation of torture doesn't, obviously. That's because they're irrelevant - Asia is so much more important (it must be a pain to be the correspondent in charge of writing about Europe, heh). And of course, the only thing wrong with the healthcare debate in the US is the bipartisanship, not the fact that America's power-that-be would seemingly rather let people go bankrupt or die than limit the profits of insurance companies...

But that's me, being elitist, out-of-touch, arrogant and snobbily Frenchy again. But I do have an excuse: I'm actually French.

And the Economist doesn't like what I stand for. And they have a bigger audience than me, sadly.

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by Jerome a Paris (etg@eurotrib.com) on Sat Oct 3rd, 2009 at 09:58:28 AM EST
I guess I'm always nonplussed about the (highly frequent) articles explaining in the same breath that Europe (or its opinion) is irrelevant and that Europe has to, absolutely, follow the US lead.

Why should the US even care if Europe follows its lead, if it's irrelevant anyway? So either Europe matters (if only as an "international community figleaf kind of way), in which case its positions should certainly be respected to some extent instead of demonized, or it doesn't, in which case why bother.

And the same applies to France.

The real lesson of such articles is that neocons (and neolibs) fundamentally feel threatened by Europe, and endlessly worry about it offering an attractive alternative to their domination.

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Sat Oct 3rd, 2009 at 10:22:43 AM EST
[ Parent ]
... on the face of it illogical combination of positions is actually a pastiche of different positions, combining what is told to the reactionary populist elements of the base as part of the framing of support for US militarism and the message to the corporate establishment.

My impression from when I read it far more regularly in Oz in the late 90's is that at one time the Economist would only have had the message to the corporate establishment, but as noted in this piece, over the past decade they have fallen away from being a hard and bright tool of the corporate elite to a lot more muddled party-line "thinking".


I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.

by BruceMcF (agila61 at netscape dot net) on Sat Oct 3rd, 2009 at 07:04:16 PM EST
[ Parent ]

The way to understand The Economist

is to look at the job advertisements in it-- lots of code there to interpret.  That tells you who the essential readers are.  It's the Murdoch sector- the nontransparent neocolonial bloodsucking corporations, the foundations and companies run by Third World kleptocrats (Middle Eastern, Latin American, East Asian, Russian), and the shady London and New York and Toronto and Munich corporate chieftains and their children who do business with them.  And all the clever, ruthless, careerist, but mostly disposable minions who come from nowhere (and almost invariably fade back into nothingness soon enough) that serve them.  It's the colonial overlord class in its contemporary form.  (Without going into details, I have a couple of acquaintances who went into that world.  One is an editor of The Economist.)  

The Bush/Blair/Putin era was great for these people- they got everything they wanted.  The showed their world their grandiose narcissism and cleverness, and the contempt they have for middle class and working class people (which oozes out between the lines everywhere in The Economist, though their editors remove as much of the evidence of it as possible.)  It also showed that if/when the world really becomes their playground, when there are not enough adults- academics and intelligent powerful leaders dedicated to at least a minimum of social decency- to rein them in, their boundless greed, narcissism, and nepotism leads to an hideous mess of things pretty quickly.

Okay, having said that...I think "Charlemagne"'s editorial is fairly superficial.  

(there's more, by killjoy))

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Sat Oct 3rd, 2009 at 05:22:25 PM EST
[ Parent ]
Daily Kos: the "Atlantic Gap" - Obama's America and ungrateful Europeans
The showed their world their grandiose narcissism and cleverness, and the contempt they have for middle class and working class people (which oozes out between the lines everywhere in The Economist, though their editors remove as much of the evidence of it as possible.)

Priceless...

Europeans think a hundred miles is a long way. Americans think a hundred years is a long time.
by Bernard on Sun Oct 4th, 2009 at 04:02:43 PM EST
[ Parent ]
the problem is not that the Economists worries too much about Europeans, but that we worry too much about the economist. It's a popular rag dressed up as academically respectable: Some airport reading for "businessmen" who want to learn their lines about state interference (with their kind of business) and lack of interference or not doing enough (to kill off the competition).#

Its not really for academics, policy wonks, or serious policy makers.  It's not for serious business people either  or people engaged in geo-political strategic corporate planning.  It's for the people who think they have a licence to indulge in that sort of thing, but its really only chit chat at the club of a Saturday afternoon.  The sort of mag you want to be seen reading by your boss.

get over it.

notes from no w here

by Frank Schnittger (mail Frankschnittger at hot dotty communists) on Sat Oct 3rd, 2009 at 08:24:08 PM EST
... those $750 Economist Intelligence Unit briefings. The Economist is advertisement for that.

It may well be that if they have gotten more muddle headed over the past decade, it because its the people attracted by the muddle headedness that are most likely to pay the big bucks for the EIU briefings, now that much of what they provided before in terms of inside info is available to a wide range of well-connected people via global internet correspondence.


I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.

by BruceMcF (agila61 at netscape dot net) on Sat Oct 3rd, 2009 at 08:53:52 PM EST
[ Parent ]
I would not be so sanguine about their influence over academia if I were you. Economists seem to confuse scientific theory and Conventional Wisdom with a frequency that is rather disturbing for a discipline that claims to be a serious academic enterprise.

- Jake

If you only spend 20 minutes of the rest of your life on economics, go spend them here.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Sat Oct 3rd, 2009 at 10:07:08 PM EST
[ Parent ]
of course you're right but academia or policy wonks almost never use (for their work) press, only books-monographs and articles in specialized magazines. economist is not specialized magazine, it has lots of tabloid style short articles where writers allowed to express a couple of points only. that's why articles generally seem to be shallow stereotypizations. On top of that most articles (fortunately not all, for example they have good correspondent on Thai politics) are shamelessly spinned to create particular opinion.
by FarEasterner on Sun Oct 4th, 2009 at 11:30:30 AM EST
[ Parent ]
... economists use it in the classroom when they need "examples" for the area they are teaching by follow-the-model and don't have any at hand because they don't really know anything at all about that field of economics.


I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.
by BruceMcF (agila61 at netscape dot net) on Sun Oct 4th, 2009 at 05:34:57 PM EST
[ Parent ]
Greg "Bell Curve" Mankiw scatters full-length reproductions of Economist articles liberally through his introductory economics textbook.

But that book is garbage anyway, so it's not doing much in the way of damage...

- Jake

If you only spend 20 minutes of the rest of your life on economics, go spend them here.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Mon Oct 5th, 2009 at 11:29:31 AM EST
[ Parent ]
... ice cream vendors at the beach model, Principles of Economics texts all share about 90% of the same material, and you can't break free of the shackles of the standard approach in 10%.


I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.
by BruceMcF (agila61 at netscape dot net) on Mon Oct 5th, 2009 at 02:51:13 PM EST
[ Parent ]
... break free of the Conventional Wisdom within the remaining 10 %, simply by the vehicle of reducto ad absurdum.

There is an example in Bell-Curve's book of how you can use private contracts to internalise externalities. The example involves a barking dog, whom your neighbour wishes to be rid of. Your neighbour can then pay you to get rid of the dog. It is trivially simple to, in this example, replace the barking dog with a bawling infant, as the subject of paid euthanasia.

Similarly, when discussing the operation of perfect markets, one can discuss the fact that famine is a market solution. It is trivially simple to construct an example in which the Socially Efficient operation of the market is to let 90 % of the population starve to death.

While these two examples only concern themselves with demonstrating to the student that the concept of Social Efficiency should be taken with a largish pinch of salt, one can similarly subvert other topics.

- Jake

If you only spend 20 minutes of the rest of your life on economics, go spend them here.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Mon Oct 5th, 2009 at 03:06:13 PM EST
[ Parent ]
But a textbook that devotes 10% of the text to demonstrating that the majority of the text is a load of hogwash will not sell - it will neither satisfy those trying to peddle the hogwash, nor students who are persuaded by the 10%, who will wonder why they had to spend so much on a book that the book itself demonstrates is mostly bullshit.


I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.
by BruceMcF (agila61 at netscape dot net) on Tue Oct 6th, 2009 at 12:37:24 AM EST
[ Parent ]
But it's not bullshit. It's a toolkit. The tools are mostly not silly (well, not uniformly silly) - the problem is the naivite with which they are used.

- Jake

If you only spend 20 minutes of the rest of your life on economics, go spend them here.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Tue Oct 6th, 2009 at 03:13:32 AM EST
[ Parent ]
... widespread permission to use the toolkit on questions and in ways where it is definitively established that the tools do not apply.

But some of the bullshit is more deeply embedded. The marginalist modeling of consumer behavior requires us to make assumptions about individual behavior that are known to be false. The marginalist modeling of production requires us to make assumptions about physical production processes that are known to be false. The marginalist modeling of factor markets requires us to make assumptions about the nature of durable productive equipment that we know to be false.


I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.

by BruceMcF (agila61 at netscape dot net) on Tue Oct 6th, 2009 at 03:44:02 PM EST
[ Parent ]
When you are making a toy model of a paraglider, you are permitted to neglect the wind. You are not permitted to neglect air resistance. The two approximations are fundamentally different.

As long as the assumptions are known to be false in the first sense, I don't have a problem. It's when they're false in the second sense that I call bullshit.

- Jake

If you only spend 20 minutes of the rest of your life on economics, go spend them here.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Tue Oct 6th, 2009 at 04:00:46 PM EST
[ Parent ]
Quite, and they are false in the second sense.

The aggregation of capital is an especially egregious case, where after the Cambridge Capital Controversies there was a pronounced shying away from reliance on the model in favor of appeal to General Equilibrium Theory, and then after the model of General Equilibrium was shown to be fatally flawed in the sense of requiring unreasonable restrictions in order to avoid a quite large number of equilibria, many of them with extraordinarily unstable dynamics, the admitted flaws of composite capital were quietly forgotten so that composite capital could stand in for the irreparable General Equilibrium theory.

And don't forget that the now known to be failed General Equilibrium model was also the recourse to the 1930 critiques by Sraffa of Marshallian partial equilibrium analysis.


I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.

by BruceMcF (agila61 at netscape dot net) on Tue Oct 6th, 2009 at 05:45:57 PM EST
[ Parent ]
I wouldn't call it garbage, I've used it myself. It is a good introduction of neoclassical economics - Mankiw can't be blamed for writing the wrong stuff. For example, I just opened the book at random just now and found myself reading about Why the Aggregate-Demand curve Might Shift (btw what is up with Americans not understanding that capital letters only belong at the start of sentences?).

Anyway, he lists lots of good stuff, and under Shifts Arising from Consumption he has ok examples (higher saving for retirement-> less consumption, stock market booms-> more consumption). What's bad is not the examples he use, but those he leaves out, as the main thing here is not if the stock market booms or not, but how wages develop. Or don't develop... I might also add that the phrase "Public works" is nowhere to be found in the index.

Peak oil is not an energy crisis. It is a liquid fuel crisis.

by Starvid on Tue Oct 6th, 2009 at 01:36:25 PM EST
[ Parent ]

It's not really for academics, policy wonks, or serious policy makers.

I would doubt that, but even if you're right, it's read by the people that write the briefings read by policy wonks and serious policy makers.

It's a good representative/synthesis of the common wisdom.

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Sun Oct 4th, 2009 at 12:02:29 PM EST
[ Parent ]
I'm not an economist so I obviously missed the importance attached to it by economists.  As a former businessman I am somewhat amused that what little I have read of the economist was ever taken seriously by serious people.  I always thought it was for the little people who thought they were grown ups.

notes from no w here
by Frank Schnittger (mail Frankschnittger at hot dotty communists) on Mon Oct 5th, 2009 at 04:38:55 PM EST
[ Parent ]
Say what you want about the Economist, but it's the only choice if you want reasonably wide coverage of world news. Sort of like Time used to be, decades ago.

I would SO love to be proven wrong on this.

by asdf on Sun Oct 11th, 2009 at 06:23:32 PM EST
[ Parent ]
 cited from the "Economist" ( a rag which I'd never otherwise read, ever!)

 "American diplomats insist that Europeans see a failed Afghan state as a direct threat to their security. That is not true. "A very small number" of European governments believe Afghanistan is on the front-line of the war on terror, says one senior Brussels man. Most sent troops just to maintain good relations with America. Europe's governments fear there is no strategy for winning the war but "some are afraid to tell the Americans the truth."

   I wonder if Obama has noticed that neither the Chinese nor the Indians have any participation in either Afghanistan or in Iraq.  Does Obama think that the Chinese or Indians are ignorant of or indifferent to the supposed dangers these two regions pose to their security?  Strange.  You'd think that if there were some genuine dangers posed by "not doing enough," as the Obama administration sees it, in Iraq or Afghanistan, that the Chinese and Indians would be both aware of that and involved.  Somehow, it doesn't strike them as that important.

  Maybe Obama should figure out why that is.

"In such an environment it is not surprising that the ills of technology should seem curable only through the application of more technology..." John W Aldridge

by proximity1 on Sun Oct 4th, 2009 at 01:31:07 PM EST
I wonder if Obama has noticed that neither the Chinese nor the Indians have any participation in either Afghanistan or in Iraq.

Hehe, the Indians offered to send 150.000 (!) troops to Afghanistan. Guess what the Pakis thought about that... ;)

Peak oil is not an energy crisis. It is a liquid fuel crisis.

by Starvid on Tue Oct 6th, 2009 at 01:21:46 PM EST
[ Parent ]
In Britain, "Paki" is a racist slur. Please don't use it.
by Gag Halfrunt on Wed Oct 7th, 2009 at 06:33:50 AM EST
[ Parent ]


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