Free Riding

Felix Salmon thinks the rest of the world is shirking:

Justin Fox has an interesting breakdown of global stimulus packages by country: the US, China, and Spain have big ones, while the rest of the world just doesn’t seem to be trying so hard….He’s right, and no amount of “buy American” provisions in the bill will prevent money from leaking overseas in a globalized economy. Liquidity, you might say, always finds its level. At the margin, it does seem that countries such as the UK are freeloading on the US bailout — both in terms of the stimulus package and in terms of the bank bailout.

I don’t know about Spain, but the U.S. was able to pass a big stimulus bill because we had a shiny new left-wing president with lots of political capital to spend, and China was able to do it because they’re an autocracy. Conversely, most European governments range from the not-very-shiny (Germany, say) to the downright superannuated (Britain).  They don’t have a yearlong campaign of hope and change to draw from.  What’s more, as Matt Yglesias and Megan McArdle point out, there are also institutional and cultural issues holding Europe back.  The Germans are still scared of a resurgence of the Weimar Republic, and the European Central Bank humors them by keeping monetary policy absurdly tight.  The EU’s stability and growth pact probably doesn’t help things either.  The upshot is that Europe isn’t doing much to fight the meltdown, and that’s especially true of Germany, which ought to be leading the charge since it runs a big current account surplus and could afford to spend much, much more.  Instead, it’s one of the chief obstacles to recovery.

I don’t have any brilliant suggestions for getting Europe to become a little more proactive on the let’s-avoid-another-great-depression front.  Just one more job for the Obama economic team to work on, I suppose.  Maybe someday Treasury will actually hire someone besides Tim Geithner and we can start pushing on this a little harder than we are now.

DOES IT FEEL LIKE POLITICS IS AT A BREAKING POINT?

Headshot of Editor in Chief of Mother Jones, Clara Jeffery

It sure feels that way to me, and here at Mother Jones, we’ve been thinking a lot about what journalism needs to do differently, and how we can have the biggest impact.

We kept coming back to one word: corruption. Democracy and the rule of law being undermined by those with wealth and power for their own gain. So we're launching an ambitious Mother Jones Corruption Project to do deep, time-intensive reporting on systemic corruption, and asking the MoJo community to help crowdfund it.

We aim to hire, build a team, and give them the time and space needed to understand how we got here and how we might get out. We want to dig into the forces and decisions that have allowed massive conflicts of interest, influence peddling, and win-at-all-costs politics to flourish.

It's unlike anything we've done, and we have seed funding to get started, but we're looking to raise $500,000 from readers by July when we'll be making key budgeting decisions—and the more resources we have by then, the deeper we can dig. If our plan sounds good to you, please help kickstart it with a tax-deductible donation today.

Thanks for reading—whether or not you can pitch in today, or ever, I'm glad you're with us.

Signed by Clara Jeffery

Clara Jeffery, Editor-in-Chief

We Recommend

Latest

Sign up for our newsletters

Subscribe and we'll send Mother Jones straight to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate

Share your feedback: We’re planning to launch a new version of the comments section. Help us test it.