Today, most of the Democratic policy elite in Washington, D.C. believe that the revitalization of the American economy can only be achieved through bold federal tax and spending policies. They compare the current state of US infrastructure with many European countries, from roads and bridges to railroads, airports, and public services (including health care, vocational training, and public transportation), highlighting the stark disparities in the provision of public goods. pointing out. At the same time, most of our Republican counterparts do not believe that the United States has lessons to learn from old Europe. They point to a continent in crisis and a systematic decline in economic growth. In general, they relentlessly support the idea that the European Union (EU) is a hard-line Brussels-based institution, and the European Union (EU) is a hard-line institution based in the European Union (EU). As evidenced by the absence of European tech giants like Apple and Google, there is a tendency to over-regulate, stifle innovation, and under-perform.
Both sides tend to overlook the core features of the EU that influence the US debate. The EU today is in many ways a more “perfect” single market than the US. As I argue in a recent essay in the May/June 2022 issue, diplomatic issue, America has not fully harnessed the power of its single market compared to Europe, which has done so for decades. While it is undisputed that the US enjoys much higher interstate trade flows and liquidity than her EU, US interstate trade is three to four times higher than her EU. presumed to be.High – this applies apart from US interstate trade barriers are relatively high rather than non-existent. Americans move across state-to-state regulatory barriers, thanks to the social lubricants of language and culture that Europe lacks, but the Americans who do move fall short of the substantial amount the EU has cut across its member states. Still paying the cost. The United States would benefit greatly from efforts to emulate the EU’s more open single market principles.
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This is especially true for cross-border trade in services, where the EU has long established the principle of “mutual recognition”. This means that services legally sold in one Member State can be sold elsewhere without further requirements. In addition, the Luxembourg-based Court of Justice of the European Union (CJEU) has become more active in removing regulations that it has determined have avoidable impacts that “impede” cross-border market access. Compare the U.S. Supreme Court, which interpreted the U.S. Constitution’s Commerce Clause as simply prohibiting grossly protectionist “intentional discrimination.” Legislative differences between the EU and the US have been magnified by Congress. While the U.S. Congress has rarely exercised its Commerce Clause powers to facilitate U.S. interstate opening, European supranational bodies (both the EU Commission and the European Parliament) have actively pursued the legislative agenda.
Some concrete examples highlight basic points about what it means in practice to have default rules (with exceptions) of openness in Europe, but service providers in the United States faces legally separate jurisdictions (with some exceptional areas of openness). European hairdressers can close their shop in Lisbon and start fresh in Amsterdam by simply registering online and requesting a Dutch license, but licensed cosmetologists moving from Ohio to Pennsylvania Masters must complete 2,100 hours of training and pass written and practical exams. new license. Experienced plumbers from Georgia must pass a seven-hour exam to practice at the Florida border. European plumbers can fix leaks in pipes in neighboring countries with much less administrative hassle. Some professions in the United States, such as nurses, have reached interstate agreements to obtain licensure in many states, but this is the “universal recognition” that the EU has sought to establish as a standard. ” remains far from
Our description of the fragmented US market and the resulting substantial regulatory costs suggests a real opportunity to revive the US economy. In fact, the American “single market project” promises more plausible benefits than such further measures in Europe. While the relatively distinctive population of Europe will still moderately move and trade across borders within the EU, even if regulatory barriers are actively removed, Americans are socially There is a tendency to move beyond state barriers taken for granted as ‘the cost to do’. Opportunities for better single market governance should be identified without jeopardizing the norms and merits of the US system. The easy win is undoubtedly in the services sector, where Balkanized national regulation is particularly prominent. The Bundestag could easily offer federal incentives for setting up a national “Digital Single Gateway”, such as the one her EU member state is building to facilitate interstate travel and business operations. .
But can such an agenda be imagined in today’s polarized America? A sign of such interest in reform is seen in an area where both parties are comfortable with federal authority: the military. You can Former first lady Michelle Obama first turned her attention to the problems facing nurses, teachers, and other licensed professionals as the spouse of a military member who regularly travels from base to base. . The Pentagon has since looked at the issue in a series of investigations, setting him one of the only policy items the Trump administration has taken from its predecessor. A bipartisan law requiring states to approve military spouse licenses is now passing Congress. Extending this idea beyond Washington’s military special powers may work primarily through federal incentives rather than requirements. The Democratic government of President Joe Biden could explain the agenda in the same way that the European Commission did, in terms of the pragmatic view of economic opportunity and fair competition. Republicans can support it as a return to the basics of the free enterprise ideals that they believe the country was founded on.
detail:
America
US economy
Competitiveness
capital flow
european union