The Political Economy of Anti-Americanism
by Russell A. Berman
December 2, 2004
Major foreign policy differences, especially regarding the wars in Afghanistan and Iraq, have contributed to the deterioration of relationships between the United States and our traditional allies in Western Europe. There can be no doubt that some European leaders stonewalled the Bush administration on Iraq in order to provide lateral support to the Kerry campaign. With the Bush victory, however, Europe may choose the wiser path of mending fences with Washington.
Yet an anti-American spirit has been unleashed in the European street, and it will be difficult to tame, not only because of foreign policy but also because of economics. Poor economic performance in Europe feeds a
politics of resentmentAlthough Europe urgently needs structural reform, it hides behind the smoke screen of anti-Americanism, which is really anticapitalism. Rejecting America because of capitalism, however, means repressing the European tradition of free market thinkers from Adam Smith to Friedrich von Hayek.
Many Europeans believe that their slow economy is the price they must pay for their elaborate welfare state. This, however, turns out to be an illusion.
A recent study by the Austrian Labor Council shows that the portion of GDP devoted to the social safety net is greater in the United States than it is in Europe; although European states generously pay out more in welfare benefits, they take much more back through higher tax rates.
At the end of the day, anti-Americanism as a block to economic reform inhibits European prosperity. The more Europeans demonstrate, the farther they fall behind. Good-bye to Lisbon.
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