Structural unemployment and working poverty are not inevitable

The plight of structural unemployment and gaggles of working poor, it appears, are here to stay. But are they the inevitable consequence of economic liberalisation?

They are not. If we balance the burden of economic transformation on labor and capital, and strengthen progression, we can have it both: near full employment and open borders.

 

Mindestlohn, DGB, 2009

The sentiment is right, but the policy is flawed.

 

No, the answer is not a minimum wage. No, it’s not protectionism. No, it won’t hurt growth. But yes, it will require fundamental reform, hard work and international cooperation.

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Foundations: benevolent, but undemocratic

Foundations are booming in Germany and they are frequently cherished as the ideal way to harness private wealth for the common good.

I’m critical about the efficiency, equity and legitimacy of civil society, and I think foundations are a case in point. This tax-exempt, free-roaming and supposedly benevolent capital is subjected to only minimal public accountability and may sometimes reflect a troublingly elitist vision of the common good.

Bertelsmann Stiftung / AG Berlin, via Flickr, originally uploaded by Gertrud K.

Kommandantenhaus, Unter den Linden 1, 10117 Berlin: charity?

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Private property isn’t theft, but neither is taxation

Peter Sloterdijk has recently called for a radical rethinking of redistribution. He criticized “compulsory taxation” (sic!) as fiscal kleptocracy inadequately degrading its citizens intosubjects of tax laws, rather than encouraging the rich to give. He cited US philanthropy and suggested to promote voluntary donations in lieu of taxes, thinking of (rich) people as givers, not as takers.

via Flickr, originally uploaded by Mindful One

Don’t tax me, I’ll donate?!

Sloterdijk’s hyperliberal argument may be spearheading the kind of uncritical naturalizing of private property that also underlies much of the praise of foundations. Sloterdijk has it wrong when he believes that he doesn’t owe the polity much to be taxed.

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Civil society: feeling good is not enough

Civil society is everybody’s darling in politics and policy today. It’s hard to find a policy student who hasn’t interned at some NGO, founded her own grassroots initiative and isn’t excited about non-profits in any given policy field.

Animal vs. disability charities, via Flickr, originally uploaded my Mot

So is the third sector panacea? Uh, maybe not. A third sector? Non-governmental, non-profit? What kind of definitions are these, anyway? And what would be an uncivil society?

Whenever social sciences come up with such terms that convey little more but a vague sense of something being different, or gone (think postmodern) there is always the danger that really, we don’t know (exactly) what we’re talking about.

For all their shortcomings, we roughly know how markets and states function, and how they fail. By contrast, we appear to know relatively little about how whatever it is we call “civil society” works.

Is it then reasonable to assume that civil society is categorically devoid of dysfunctions? Hardly so, I think.

As long as we don’t know what we’re cobbling together in civil society, we’d better stick to our lasts: the market and the state.

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Merry Christmas, Bethlehem Ephrata, though thou be little …

englishgerman

“But thou, Bethlehem Ephratah, though thou be little among the thousands of Judah, yet out of thee shall he come forth unto me that is to be ruler in Israel; whose goings forth have been from of old, from everlasting.”
Micah
(5:2), King James Version

Marienkirche Leeste, Germany / Christmas 2007
Marienkirche Leeste, Germany / Christmas 2007

Last Christmas, Pastor Brusermann at a local church near my hometown (Weyhe’s Felicianius Church) told the congregation that Christmas also meant that “this world could be made good, again”.

The reverends inspirational sermon stuck with me, and the beauty and the power of the nativity story occurred to me, again, and anew.

“Whenever I get gloomy with the state of the world, I think about the arrival’s gate at Heathrow Airport.”
Fictional UK Prime Minister David of the 2003 romantic comedy Love Actually.

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