THIS WEEK’S MUST READ NEWS FROM CAPX | NEW DIRECTION
22 April 2016
New Direction | The Foundation for European Reform is an international partner of CapX, a new digital service which commissions and aggregates the best news on popular capitalism from around the world.
Yugoslavia was one of the fastest growing economies post WWII. Perhaps surprisingly, its slowdown started in 1965 when control of production shifted away from the state, towards the work councils. Whilst wages increased, they imposed barriers to entry for new workers, and unemployment soared. It is a lesson that not only the economy suffers when it lacks “capitalists”, but so do workers that fall outside of the privileged, established groups.
The Global Gender Gap report ranks Iceland as the most gender equal country in the world followed by Norway, Finland and Sweden. But on closer inspection, there are some strange findings. Nordic countries have the lowest share of women in management in Europe as well as surprisingly low numbers of female business owners. It seems that extensive welfare policies in the Nordics, though designed to aid in women’s progress, are in fact hindering it.
Britain would suffer enduring damage by separating from the huge, wealthy market on its doorstep. With exports to the UK accounting for just 3% of the rest of the EU’s GDP, Germany and France would have the upper hand in trade negotiations. Expect to see German car manufacturers raising trade barriers and French farmers keeping out low-cost British food. In other words, Vote Leave, Lose Control.
The Remain campaign confuses familiarity with certainty. Having kept the pound and stayed out of the Schengen Zone, we have plenty of external options. Yes, some of them carry risk. But so does staying put. Did you know Juncker wants an EU army? Or that the little-discussed Five Presidents’ Report, official Brussels policy, sets out plans for deeper fiscal and political union, and pooling of decision-making. Don't say you haven't been warned.
Young Republicans are sympathetic to the issues of inequality and crony capitalism but are unconvinced by the left’s solutions and are cautious of identifying as Republican in an overwhelmingly Democrat Liberal Arts College generation. The GOP's failure to find a unifying and inclusive leader has left Trump to fill the void. But the debacle of Trump could prove to be a moment of creative destruction so desperately needed for the party.
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