Social evolution, revolutionary change, and contemporary globalization dynamics

Social evolution to rapid revolutionary change and contemporary globalization dynamics: Emphasizing the an Analysis of Global Economics.

An article that recently appeared in The Korea Herald, "U.S. And Germany stress cooperation" details a visit to Germany by U.S. Treasury Secretary Tim Geithner, who met with his German counterpart to discuss the financial crisis that has enveloped Europe as of late. The context for this meeting was important, as the European Union's currency, the Euro, has consistently been devalued in the past few years and several countries that are part of this alliance (17 altogether) are contemplating various measures in which the currency and the economic solidarity of the EU could be saved.

The crux of this article, which directly correlates to Hans-Werner Sinn's opinion editorial, "Why Berlin is Balking on Bailout" actually has less to do with the meeting between the two financial heads of the U.S. And Germany and more to do with possible solutions to the pecuniary woes plaguing the EU. One of the solutions that was discussed near the conclusion of "U.S. And Germany stress cooperation" is the fact that the European Central Bank, which is the primary issuer of the Euro, could actually enact a series of purchases on bonds that could help to boost the economies of the countries affiliated with the EU. Despite the temporary alleviation of the financial crisis that such a move would inevitably bring, Germany has traditionally opposed such measures. Sinn's article details a number of reasons why, beginning most eminently with the fact that such purchases on the part of the ECB are in direct violation of the Maastricht Treaty, which would more than likely be "rejected by Germany's Constitutional Court" (Sinn).

A fact that both articles allude to, however, is that by failing to endorse measures for the ECB to purchase bonds in attempt to rally its flailing economy of the southern states that are part of the EU, Germany is essentially attempting to stay clear of the debt in this part of the world. This attempt on the part of Germany is admirable in one sense, as the last thing the nations of Europe need is another country burdened by debt, yet may adversely affect the member nations of the EU due to the German's fastidiousness. Moreover, another fact that Sinn implies in his article is the fact that such a bailout on the part of the ECB is somewhat akin to how the U.S. Federal reserve bailed out several financial institutions leading up to its fiscal crisis of 2008. Although such solutions appear to lessen the impact of financial matters in the short-term, they simply overburden the federal government that has attempted to the bailouts, and made things worse for itself in the long run. Anyone cognizant of U.S. economic developments in the past five to 10 years can adjudge this fact to be verifiable. Or, to put it in Sinn's terms, "Such schemes violate the liability principle, one of the constituting principles of a market economy, which holds that it is the creditors' responsibilities to choose their debtors. If debtors cannot repay, creditors should bear the losses" (Sinn).

While reading both of the aforementioned articles, it becomes quite evident that the theory that most relates to the relationships between Europe, the United States, Germany, and the other nation states that comprise the EU is world-systems theory. There are several salient factors that underscore this notion, one of the most visible of which is the degree of solidarity on an international basis that the European Union already represents. Furthermore, as both articles referenced in this document have already alluded to, the U.S.'s economy is in no small part dependent on that of the Europe's and has been for the past couple of years. The concepts of globalization as one which is based on labor and international trade is virtually a reality when discussing the economic principles of the elucidated in both of these articles. World system theory advocates viewing the principle unit of socialization on a global, not national basis. The intrinsic link between the economies of Germany, the U.S. And the European Union boldly attest to this fact, and are representative of an economic globalization that has only increased in strength in the past several years.

Regardless of what Germany ultimately decides in relation to the issue of ECB's idea for bailing out many countries in the European Union via the purchasing of bonds, it will not be able to completely extricate itself from its ties with its European and trans-Atlantic counterparts, the U.S. This fact has not escaped the notice of pundits such as Sinn who, while widely disparaging any sort of socialist tendencies by alluding to errors generated by the U.S. In the past with such measures, unequivocally argues for a global economic system, which the subsequent quotation makes abundantly clear. "…the countries should…form a common nation, with a constitution, a common legal superstructure, a monopoly on power to ensure obedience to the law and a common army for external defense…creating a United States of Europe" (Sinn).