“When the facts change, I change my mind. What do you do, sir?”
—John Maynard Keynes
Since I have arrived in the US as a European Marshall Memorial Fellow, economic turmoil has been one of the most important subjects on our agenda. The ongoing economic crisis on both sides of the Atlantic provides fertile ground to discuss the common problems faced by Americans and Europeans.
The difficulties are insurmountable on both sides of the Atlantic. The transatlantic alliance now faces a double challenge. On the one hand, the crisis has triggered a debate about power transitions in the global economy. While the US and European economies suffer from sluggish growth rates and rising socio-economic inequalities, the emerging markets seem to perform pretty well.
This is perhaps why China remains one of the most important common discussion topics. During discussions with leading scholars in the US, I realized that the “China impact” has already begun to make a profound impact. Also, the economic crisis has created new challenges and deepened the existing fault lines within the socio-economic system in the US (similar to Europe, again). Immigrants feel especially vulnerable. In our meetings with representatives of the immigrant groups, they argued that they have become “victims of the economic crisis probably more than the ordinary citizens in the US.” It was astonishing to witness the striking similarities between the US and Europe in relation to immigration.
At this point, I believe both the Americans and Europeans are faced with a paradox: the economic crisis forces policymakers to develop protectionist and isolationist strategies in relation to immigrants, reminiscent of the debate about the so-called “Europe Castle”. But both the European countries and the US must pursue open-door policies to stand tall in the age of global ground shift.
Is there a way to get out of this paradox? My observation is that the economic crisis in the US has already triggered a battle over ideas on these issues. Americans, like their European counterparts, need to make tough choices and think creatively. It is certain that there are no easy solutions to the current problems. Yet it is equally certain that the existing paradigms do not help us to face the incoming challenges at the domestic and international levels. It is perhaps time to reconsider the state’s role in the economy, question the strong belief about the self-adjustment capacity of the “free markets”, and the contributions of immigrants to our economies.
My experience in the US suggests that this is not an easy task– at least for some of the Americans and Europeans used to thinking in purely conventional ways. We should keep in mind, however, that extraordinary times require unconventional thinking and necessitate political leadership. And it is certain that the transatlantic alliance offers the potential for bold leadership.
Mustafa Kutlay, a political economy researcher at the International Strategic Research Organization (USAK) in Turkey, is a Spring 2013 European Marshall Memorial Fellow.
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