Get Yer Freedom Here!

The dollar remains strong, this in spite of the ceaseless printing of dollars by the government. Why? Because the other currencies are in worse shape and there is no other place to put money. There is a rumor afoot that the Americans will not support the euro this time around and, if that is the case and Italy is a new problem, the euro will fall and the dollar will strengthen. This raises an interesting thought experiment: How much of America's economic strength, her innovation and technology, is a function of "there's no place else to go?"

A few years ago the President of Peru, Mr. Alberto Fujimori, declared that his country was de-emphasizing the poor, the struggling, and the huddled masses in favor of the productive, the rich the achievers in order to build an investor friendly state. With the threat of ritualistic killings, political murders connected to famously failed economic philosophies, narco-state risk and the like this notion did not go far in Peru. But it could elsewhere. Why not a competitor nation for the U.S. which is friendly to wealth, innovation and growth? The welfare state will clearly need to be reassessed and different models will have to emerge. A new capital-friendly nation could still outsource to China but could bring in wealth to the new state without the hassle, debate and disrespect that has afflicted capital in America.

It is an unlikely but worrisome scenario. The economic benefits of freedom are a coincidence; they should not be the focus of political philosophy. But with the clear failure of the welfare state the political talk is going to become more utilitarian, more practical, and certainly there has been no evidence among politicians that depth of political beliefs will be a hindrance to any political innovation.