Henry,
The language problem does pose a very interesting, (not to mention ironic), little puzzle.
For example, The Mexican (or Latin American), immigrant, same with the Greek, Italian, Turkish, Spanish etc. in Europe, have learned English language easily, because not only it becomes a requirement, but because in general English is the easiest language to learn (there is really no verb conjugation, nor "declinations", the hardest part is "spelling" due to the funny [my opinion] way English treats vowels).
Having said that, One must remember that the U.S. is a country of immigrants, the "culture" (or lack thereof, no offense intended), in the U.S. is only 200 years old at best, it is a young country that it really has been united by the spirit of the entrepreneur, and the small businessman at large. Whatever language barrier existed, it was quickly eliminated.
The real "culture" is that of the entrepreneur, free markets, individuality, and independence, the American businessman has gone to every corner of the world, and indoctrinated every leader and population that free markets will "set them free"..... So if the European Union is to succeed, even with the possible language barrier, as an obstacle, the real obstacle will be how truly, their economies adapt, to the requirements of the EU real need to establish a "free market" within. This will be critical for their success, as they will have a formidable competitor in the U.S. already an expert at free enterprise. Not to mention emerging competitors, such as the various present and future economic blocs. Observing this with an optimistic point of view, it is perhaps the beginning of the end for the concept of "nations", as we know it today.
The U.S. succeeded in the free market teachings to the world community, however, there are some American leaders, that are not liking what this success is bringing... namely Pat Buchannan, with his new "found" American Protectionism, preaching to the "blue collar" constituency, (and having to get rid of his Mercedes Benz in the process), about the evils of NAFTA, and the like...
I wonder if Mr. Buchannan, real motive is a run for power... and his new found "crusade" is a mere channel for his real purposes.
I have never being fond of politicians in the first place, therefore, take what I say about them, with a grain of salt.... however, do not forget that salt is bad for your diet.....
The success of NAFTA, is, in my eyes, the success of free markets, and the way in which economic agreements will always succeed before any "all encompassing", politico-economic and social models would work such as the "Euro".
Imagine if under NAFTA, the U.S. would try to tell Mexico, that they MUST get rid of the PRI...(the local all mighty political "Monarchy") by definition, such attempt would fail, as a nonstarter. The nationalist sentiment amongst the Mexican would simply oppose it, regardless of any economic advantage.
However, under the current system the Mexicans on their own, are already getting rid of the most efficient "Monarchy" that ever existed in Latin America. And they are doing so under relative "peaceful" means. (a few, would be [murdered] presidents, is better than countrywide revolution, of course, my opinion only).
NAFTA is perfect proof that two completely different cultures can work together, if the system is based under a free market mentality.
Your example of the Argentinean Peso, is perfect. For all intents and practical purposes, the Peso, is becoming a currency by name only, eventually, even the Argentineans, will agree to the removal of their currency and simply accept the US Dollar as their own, provided that is that the discipline shown so far in their policies do not deviate from what has been now established.
The common language, desire to "pursue" (not guarantee), happiness, and the ability, (given the political environment, made possible by the existence of the U.S. Bill of Rights), to become an entrepreneur, established the necessary goals to build the United States, as the strong country that it is today.
I will also mention here the fact that the incredible wisdom of Thomas Jefferson in purchasing the Louisiana Territory, (in opposition of his contemporaries), gave the U.S. the needed Real Estate to achieve the above goals.
Now, Unless Europe puts behind the regional differences, a hard task given the fact that these "differences" have been built and ingrained by centuries of "traditions", they have not one shred of a chance to compete in this "brave new world".
Let's not forget that in Europe, there is more than two different groups trying to work together, it is commendable that at least they are trying. Once again, the only way I see this succeeding is if they base their model under a free market environment... Otherwise, it will be a field day for currency speculators. (As it is, an already interesting show in the making).
Socialism/Communism, and any other "ism" will fail miserably, no doubt about it, so if these countries are to succeed in their attempt to compete, they should forget all the welfare programs, as they would only become "excess baggage", in their take-off flight.
I could be considered an extremist by saying that the Internet is allowing a number of radical changes, that we fully have not understood as of yet. If the stock market is correct in giving crazy valuations to these Internet stocks, perhaps it is a picture of the future of what this Internet would be capable of achieving given a true integrated single global market. If not, there will be a nice crash, so one can come and selectively "buy" whatever the excess of the markets will create as valuable assets to hold, while the cleansing occurs, due to the market excesses.
But if the market is correct in anticipating these crazy valuations, then we are in for one hell of a surprise as to what the future may hold for us...
And such is that the Internet is empowering millions of entrepreneurs, both large and small, and to many, it is a window to a very real global market place.
There is a lot implied, radical changes in the above, and subject to its own debate, to name a few, the Internet will allow individuals to compete for the best available, both on the offering and on the bidding.
I mean, individuals will be able to offer their services to a worldwide audience, and by the same token, they are empowered to be consumers for a worldwide source of suppliers. In other words the impact of "Cyber-Commerce" has not really been inputted into all these discussions, related to the EURO etc.
Then we have the "lurking in the wings" "Cyber-cash" (e-cash, you-name-it-electronic-cash). Will it be possible for entrepreneurs to issue electronic currency systems? Will "Tax Haven" countries be willing to do likewise?
What about the Federal Reserve, will they really be able to control monetary policy, via.... what? interest rates policy? Money supply?, when the ability to move capital is at the stroke of a computer key, therefore, finding home for "mercenary minded capital" in an instant.
How will labor markets react to an ever-abundant cheap labor force form countries that begin to become integrated with the global economy? Inflation does not seem to be a likely scenario for the immediate future. (tell that to the FED).
My opinion is that the politicians have their days numbered as far as "controlling the value of a currency", (central bank support), and better yet they will no longer have the ability to tax irresponsibly, both in real taxation terms and in the "hidden form" (i.e.: inflationary policies).
In other words, the politicians will have to "sell" their "wares" like any other merchant, the individual will become customers of these politicians, moving capital, and indeed themselves, accordingly, seeking "the best bidder", for their patronage.
Another interesting subject, given the Internet, and the real creation of a single global economy, is GOLD as a monetary reserve, (or hedge against inflation).
I believe that the Euro will be a challenge to what it appears so far, as an unchallenged bid by the US Dollar to become the universally accepted world currency, be this as a reserve currency or as an actual currency.
I see the main players to be The US, (with the possibility of a strong alliance with the Latin American countries), on one side. Then we have the Europeans, (via this agreement of monetary [and possibly, forced political] union), and then the Chinese as the new [potentially] economic force, replacing Japan, given the current and future explosion of the Japanese economy.
Perhaps putting it in simple terms, we are now witnessing the continuation of a battle between the individual and their so called leaders. The individual fighting for freedom, the leader for the ever pressing need to control his/her neighbor. This time around, thanks to technology, the odds seem to be in the individual's side.
It is 1776 all over again, except this time around the freedom battle cry is all over the world...
Once again, interesting times we live in....
Z. |
