IF WE EUROPEANIZE, EUROPE IS IN TROUBLE

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There's been an ongoing debate about whether America should become more like Europe. The battle lines are split almost perfectly along left-right lines ideologically. Liberals like Europe's welfare states, unionized workforces (in and out of government), generous benefits, long vacations, etc. Conservatives like America's economic growth, its dynamism and innovation. Everyone agrees that you can't have Europeanization without European-size governments.

This debate misses something. We can't become Europe unless someone else is willing to become America. Europe is a free-rider. It can only afford to be Europe because we can afford to be America. The most obvious and most cited illustration of this fact is national defense:

Europe's defense budgets have been miniscule because Europeans can count on Uncle Sam to protect them. Britain, which has the most credible military in NATO after ours, has funded its butter account with its gun account. From 1951 to 1997 the share of British government expenditure devoted to defense fell from 24 percent to 7 percent, while the share spent on health and welfare increased from 22 percent to 53 percent...


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