Home
/
RELIGION & LIBERTY ONLINE
/
Acton Commentary — Europe: The Unjust Continent
Acton Commentary — Europe: The Unjust Continent
Jan 21, 2026 2:37 AM

This week’s Acton Commentary from Research Director Samuel Gregg.

+++++++++

Europe: The Unjust Continent

By Samuel Gregg

In recent months, the European social model has been under the spotlight following Greece’s economic meltdown and the fumbling efforts of European politicians to prop up other tottering European economies. To an unprecedented extent, the post-war European model’s sustainability is being questioned. Even the New York Times has conceded something is fundamentally wrong with the model they and the American Left have been urging upon America for decades.

Western Europe’s postwar economies were shaped by an apparent concern for the economically marginalized and the desire to realize more just societies. This inspired the extensive government economic intervention, high-tax rates and generous welfare states now characterizing most contemporary European economies. After 1945, Communists and Christian Democrats alike rallied around these policies. For Marxists, it was a step toward realizing their dream. For non-Marxists, it was a way of preventing outright collectivization.

Even today, words like “solidarity” and “social justice” permeate European discussion to an extent unimaginable in the rest of the world. If you want proof, just switch on a French television or open a German newspaper. The same media regularly contrast Europe’s concern for justice with America’s economic culture. America, many Europeans will tell you, embodies terrible economic injustices in the form of “immense” wealth-disparities, “grossly inadequate” healthcare, and petition.

But while such mythologies dominate European discourse, it’s also true that Western Europe’s economic culture is characterized by a deeply unjust fracture. Modern Europe is a continent increasingly divided between what Alberto Alesina and Francesco Giavazzi called in The Future of Europe (2006) “insiders” and “outsiders”.

The “insiders” are establishment politicians of left and right, trade unions, public sector workers, politically-connected businesses, pensioners, and those (such as farmers) receiving subsidies. The “outsiders” include, among others, entrepreneurs, immigrants, and the young. Naturally the insiders do everything they can to maintain their position and marginalize outsiders’ opportunities for advancement.

So how do Europe’s insiders maintain the status quo?

First, one needs to understand that Western European governments are largely managed by a political class that transcends ideological divisions. In France, for example, the main parties of right and left are dominated by people who went to the grandes écoles­ – elite educational institutions that are very difficult to enter but whose graduates supply most of France’s business leaders, politicians, and civil servants. It’s not untypical for a grande école product to work for a politically-connected corporation, switch to the civil service, return to the private sector, before eventually ing a member of parliament.

France is an extreme case, but this situation manifests itself throughout Western Europe. Not surprisingly, this group – whatever their political differences – generally agree that they should be in charge. Indeed, Europe’s political class is exceptionally good at self-perpetuation. mon, for example, for politicians’ children to follow the same road to power. Take Greece’s current socialist prime minister, George Papandreou. His father and grandfather were also Greek prime ministers. In America, not even the Bushes have emulated this dynastic feat. Incidentally, Papandreou’s predecessor as Prime Minister, the conservative Konstantinos Karamanlis, had an uncle who was prime minister of Greece 4 times and president twice.

Second, there is the phenomenon of what the Nobel Prize economist George Stigler identified in 1971 as “regulatory capture.” As Alesina and Giavazzi demonstrate, European regulators invariably identify themselves with those they are supposed to regulate – sometimes in return for jobs in a post-regulator life – and work hard to petition from new businesses or entrepreneurs.

This is a manifestation of a third disorder: European insiders’ willingness to use state power to keep European outsiders marginalized. European unions, for example, could care less about the unemployed and immigrants. Instead they press governments to make it very hard panies to fire anyone, especially union members. Employers are consequently reluctant to hire. Many young Europeans and recent immigrants are thus condemned to cobbling together part-time employment contracts with no benefits.

But perhaps the biggest problem is one of attitude . It is not as if European outsiders are, for instance, clamoring for labor market liberalization. When Paris’s streets were hit by student riots in 2005, the protests were against relatively minor efforts to unblock France’s highly inflexible labor market. Likewise, Spain’s 20 percent unemployment rate has not been greeted with widespread demands for labor market reform. Instead the cry is for the same permanent job security (irrespective of performance) enjoyed by the impossible-to-fire crowd.

Central-East Europe is different. After all, they endured forty years of dominance by the ultimate ‘insiders”: i.e., members of the munist parties. Unfortunately, as the Economist recently observed , there is evidence of a West European-like insider-outsider dynamic asserting itself throughout the region

Of course every society has its elites. The real question is whether a society embodies the possibility of social mobility through hard work and accessibility to economic opportunity.

This is what makes modern Europe’s endless justice rhetoric so distasteful. All the tedious solidarity-talk and social justice-speak essentially masks a social stratification based on the highly-unjust foundation of proximity to government power – a situation which further incentivizes everyone to join the daily jostle to obtain state-mandated privileges.

It’s difficult to imagine a more damning moral indictment of Europe’s discredited economic culture.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Same American Dream, Different Zip Code
If Baby Boomers are said to have fled to the suburbs in the pursuit of the “American Dream,” using zoning laws as a tool, today’s young adults could be charged with the exact same mission in light of the promises of New Urbanism. The American Dream has been defined as, “the notion that the American social, economic, and political system makes success possible for every individual.” Baby Boomers moved out to the suburbs in pursuit of the conditions that were...
The Market is a Moral Teacher
Does the free market encourage moral behavior? Virgil Henry Storr, Research Associate Professor in the Department of Economics at George Mason University, recently wrote a report called “The Impartial Spectator and The Moral Teachings of Markets.” He addresses critics’ concerns that the free market brings out and nurtures human vices. mentators have stated that “engaging in market activity can be corrupting.” Storr highlights two notable quotes. Aristotle “believed that there was something unnatural about the kind of wealth getting that...
Conservatives and the Non-Triumph of Capitalism
Conservatives need to stop shying away from principled, as opposed to merely utilitarian, defenses of economic freedom and its associated institutions, says Acton research director Samuel Gregg in an article for Public Discourse: Some fiscal conservatives are certainly too sanguine about creative destruction’s unintended negative effects on our lives. But these side effects are not sufficient reasons to try to slow or even stop the process, let alone assume that higher taxes and the welfare state (which itself breeds plenty...
Augustine on ‘Spiteful Benevolence’
“Help me help you.” Yesterday in conjunction with this week’s Acton Commentary I looked at Tim Riggins’ gift of freedom to his brother and the corresponding sense of responsibility that resulted. When Tim takes the rap for Billy, Billy has a responsibility to make something of his life. As Tim puts it, that’s the “deal.” When Tim feels that Billy hasn’t lived up to his end, it causes conflict. Tim’s gift has created an obligation for the recipient. This reality...
Lower the Age of Consent to Thirteen? Why Stop There?
Barbara Hewson, a London barrister, has made the call for lowering the age of sexual consent in the United Kingdom from 16 to 13. Her reasoning (if one may call it that) is that the current age of consent leads to the harassment and “persecution of old men.” She also believes that under-age victims should have no right to anonymity, and that law based on the best interests of the child should not trump the “rights” of men who like...
Anti- ‘Social Justice’ Shareholder Resolutions
There has been ample evidence presented in the past several years to suggest shareholder activism exhibited via proxy resolutions not only wastes time but, as well, corporate funds. And yet, unions and “social justice” advocates such as the Interfaith Center on Corporate Responsibility and As You Sow perpetuate the practice to the detriment of panies. And, according to a recently released study, this activism also works to the shareholders’ detriment as well. In effect, these proxy resolutions shoot the shareholder...
The Regulators Are Coming for Bitcoin
Last month, in my series on Bitcoin, I wrote that for the crypto-currency to succeed it will one day have to e trusted by more mainstream consumers, which requires adding such features as regulatory oversight and a centralized monetary authority—the very features of other currencies that Bitcoin was created to avoid. That day may ing sooner than later: Senior officials at a top US financial regulator are discussing whether Bitcoin, the controversial cyber-currency, might fall under their regulatory remit. Bitcoin...
Big Business and Republicans Say Internet Sales Tax is States’ Rights Issue
In The Examiner, Tim Carney asks, “When do 21 Republicans senators vote for higher taxes? Answer: When the biggest businesses and local politicians hire top K Street lobbyists to push for the tax-hike legislation.” A few weeks ago I wrote about how government and big corporate collusion decreases market fairness. NPR had a great write up explaining why Amazon is one of the main culprits pushing for expansion of online sales taxes. Carney explains how former Mississippi Senator and Republican...
Video: This is Angola
Yahoo! Sports recently posted this interesting video about the Angola Prison Rodeo. In theVolume 22, Number 3 issue of Religion & Liberty, Ray Nothstine had a chance to go to Angola and interview Burl Cain, the longest serving warden. During the interview Cain says: I cannot change our reputation because it still makes people shudder, “Angola.” Life magazine called it the bloodiest prison in America. And we can’t shirk the reputation because the people e here are so violent. People...
Less Ayn Rand, More Wilhelm Röpke
Some Christian free market enthusiasts mistakenly believe we have to make a choice between socialism and Randianism. But as Joel Miller points out, there are far better intellectual leaders than Ayn Rand. Wilhelm Röpke is a prime example: Capitalism has had many defenders. Some, rather than being anti-religious like Rand, are self-consciously Christian. Rand’s contemporary, Wilhelm Röpke, is one such example. Looking back at the tremendous upheavals of the first half of the twentieth century, many responded by embracing socialism,...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved