If history teaches anything it is this: whenever politicians talk about creating a perfect world, take your stuff and run
Imbalances in the relationship between the US and Europe were beginning to show. Even amidst European prosperity, the United States (US) still had a quarter million servicemen and women stationed in Europe as part of NATO, even after the collapse of the Soviet Union. It was at this point that Western Europe began disinvesting in national defense, leaving the heavy military lifting to the Americans. That the Americans would go on paying the bill indefinitely was just assumed. The great divergence had begun.
As Europe demilitarized, it simultaneously lurched to the left in economic and energy policy. This turn to the left was expected given political trends, but the implications for the economy were profound and indeed scary. From the very beginning, the numbers never particularly added up regarding energy.
These changes in economic policy came gift wrapped in left wing rhetoric about saving the planet, the universe, and all things good. If history teaches anything it is this: whenever politicians talk about creating a perfect world, take your stuff and run. Nothing in history has generated more mass murder and mayhem than leaders promising perfection, a new world that transcends the imperfections of the human condition. Even today The World Economic Forum proposes creating a more perfect world but reducing population. The “useless eaters” in the economy are to be eased out. But who cares as these are mostly poor people without resources or representation. What happens, however, when the definition of “useless” expands is another question.
The business community could see the dire implications of Europe’s lurch to the left, but their voices were muted and often ignored. The EU could not sustain the world’s highest energy costs and expect to stay competitive. Combined with high labor costs and burdensome labor regulations, European companies were being priced out of business or at least out of Europe. They began to flee abroad. This exodus, slow at first, became a torrent in recent years and shows no sign of stopping. Without a growing economy, Europe cannot afford its lavish and expensive social welfare system at a time that waves of refugees are burdening it to the breaking point. The response of European governments to this economic shortfall, which they had created, was predictable: raise taxes. This set off a new economic migration as people of means began shifting residences and capital to lower tax environments.