February 9, 2009
Human nature being what it is, we tend to cooperate more in economically favourable times than when there is a recession. And yet, such cooperation is needed more in the latter case. Worse still, we tend to adopt selfish policies.
The Founding Fathers of the European Union were determined to put an end in Europe to balance-of-power thinking and beggar-thy-neighbour policies. ‘Solidarity’ was the cornerstone of European integration.
In the late twenties and early thirties, beggar-thy-neighbour policies led by the United States resulted in global depression. The Obama stimulus package, if and when it is passed by Congress will contain a ‘Buy American’ clause. If the President vetoes the bill, he will lose the package.
Are we going to learn from history or will history repeat itself?Author : Stanley Crossick