Hayek and Europe
February 5th, 2012
How far should the responsibilities of the rich European Union? On this important issue Friedrich A. von Hayek has been a pioneering early response:”There must be a power Which can restrain the different nations from action harmful to their neighbors, a set of rules what a state may do, and an authority capable of enforcing these rules. Readmore…
Public debate and the business sections of newspapers currently seem to know only two issues – the problem of debt in the euro area, southern Ireland, and in addition to the now dissolved first debt crisis in the U.S.. It is easy to forget that in Germany we have a debt problem – and in a larger scale than is currently standing on the paper in Greece.
In science, there are Cumulative, substitutive and regressive growth of knowledge. Cumulative means that the knowledge stock grows over time, substitutes, that traditional knowledge is replaced by better, and circularly, that realization is temporarily forgotten, rediscovered. This insight should encourage reflection on accepted theories – this is the case in the interest and capital theory.
The European House is not in a well-ordered state. Several problems jeopardize the Economic and Monetary Union: a tighter tone between the representatives of different nations. How can Europe deal with these difficulties? How Germany should respond to the problem situation? These issues are discussed below with reference to three future scenarios.
Prologue: Imagine a political talk show in which someone proposes to abolish the statutory health insurance and the performance of SHI in the future instead be financed through income tax surcharge on the following:• Up to a limit of 3,750 €, the rate is 15 percent.• Between € 3,750 and € 9,250 to the tax rate decreases gradually to 6 percent.