Wednesday, May 23, 2012

Equal outcomes

One thing that I've started wondering recently is how values scale to different levels. The political left has often been associated with values that promote social welfare and the distribution of wealth across the entire population, where the wealth is often collected via taxes from the wealthier and distributed to the poorer. In Finland this is notable as the minister of finance is from SDP, the local social democrat party. Despite this, she sternly opposes Greek bailouts, eurobonds, and the whole shebang.

If you consider, the situation on the EU-level is structurally similar to that of social welfare on the local level. Our southern friends have due to many different reasons found themselves in a pickle and our now about to fall through the cracks of the EU society. This may or may not have ripple effects to other states also on the slippery slope. And if the shit hits the fan, then it will also trickle down to the individual people. Now, the proposed eurobonds, for instance, are again one mechanism with which wealth can be transferred. In practice they would lower the barriers for struggling states to raise capital from the markets and lower the interest rates. On the other hand interest rates would go up for the norther block. Shouldn't this be entirely acceptable, if we already are doing it on a different level?

(Note: these do not reflect my views. Instead I'm merely trying to tease out what at first glance appears to be an inconsistency in thought...)

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