Political theory and inflation

A political theory in the area political economy is prone to be labelled as classical, neo-classical, Keynesian, Neo- or Post-Keynesian or heterodox economics. This is a university level course in the history of economic ideas, if you like this. Let’s try something creative here. We have unprecedented levels of inflation currently in Europe and many other parts of the world. Reasons for this are higher prices for energy, transportation and food. Anything else you need for life? You must be an artist or a priest, a bit off the normal, it seems to many economists. Add to this that, we want to foster strategic autonomy in Europe rather than anything from China that is cheaper and more polluting. In 2023 we have inflation stay with us for some years. Central banks give out warnings in this direction now as well, having negated the problem for far too long (their own statistics ECB on long-term forecasts of inflation).
Besides the ample economic advice (IMF), depending on which theory of money and the economy you adhere to, political theory allows a refreshing perspective on these economic facts and trajectories. (1) From an international strategic perspective, countries that have to renegotiate a lot of their debt or take new credits to finance imported food, energy or transport will run into insolvency rather quickly. Self-sufficiency becomes an economic asset not only a geo-strategic one. Turn around globalisation is a side-effect.
(2) Countries eager to build new public infrastructure, irrespective of concerns for bio-diversity, might reschedule or abandon huge projects, thereby reducing their CO2 footprint. This reduces the official counting of GDP, but has beneficial effects to save the planet in the medium term.
(3) Individuals and households will have to reconsider their consumption patterns: more expenditure for food, less for energy and/or transport. Behavioural changes might be induced by inflation. Less of some form of consumption, guided by inflation, will induce reductions in CO2 most likely as well.
So far this is only applied economic theory as in any textbook. A more challenging political economy question is to ask: can we come to like inflation? Can we change our preference set (ECB growth dogma) for economic variables? Southern countries in Europe seem to like inflation more than the North. Does this depend on historical experiences or is it cultural or personality trait? There is again a huge money transfer due to inflation within the Eurozone. The less indebted countries pay with loss of their purchasing power of their savings and indirectly pay for the highly indebted countries mainly in the South. European and international solidarity will be put to a tough test.
As governments fear of being voted out of power they tend to soften the price signals from markets. Again, it is cultural more than economic to what extent people are willing to accept state interference in economic affairs even of households need for food. From an ecological point of view inflation could be our friend due to the potential to induce behavioural changes. However, more expensive bio-products seem to get crowded out due to further price rises and many even middle-income households seem to return to cheaper non-bio food in many countries. The distributive effects of inflation are a major issue here. Same rationale seems to apply to transport. If you can no longer afford CO2 saving transport by train, since it has become overly expensive more people are likely to take a heavily polluting low-cost flight to your holiday location.
Hence, from a political economy perspective liking inflation might well turn out to be a rich, white man’s perspective on the economy as the global South is likely to suffer most having no resources left to invest in energy and CO2 -saving in general. Price signals may induce behavioural changes for the better of us all. However, the story it is not only about allocation of resources, but also about distribution. There we should embrace a renewal of trade union strength to correct imbalances in the distribution of earnings as the basis for consumption and investment of households as well. (Image: Tapta, at Wiels Gallery in Brussels, 2023-6, mostly untitled work, one with title: on the edge of time).

Political theory 2

Chris Brown (2004, pp. 289) comments on the tension between the notions of political theory and international relations in the Handbook of political theory. Whereas the former notion has a foundation in the “cause and effect” rationale, the latter notion has predominantly developed into an approach of “Realpolitik”. Realpolitik that starts from observed facts, normative or historical approaches rather than scientific methodologies applied in “natural” sciences. The link of this approach to the theory of democracy is obvious, but it is also under a lot of discussion within the disciplines concerned.
One of the corner stones of political theory in international relations is the concept of the “balance of power”. Derived from a rational choice perspective this approach holds that states can only be controlled by other states and, taking this for granted, international relations are built on power relations. Therefore, moving away from a bi-polar balance of power to a multi-polar balance of power will entail some frictions. These frictions might be wars of independence where states attempt to relocate themselves within the new multi-polar world and space. Even “Brexit” becomes a strategic move to remain an independent power in the upcoming new multipolar world. Russia is testing this multi-polar world order right now. The big countries like Brazil, Russia, India, Nigeria and China, (which I abbreviate BRINC) have huge populations, country size and economic potential. From the Arab States certainly Saudi Arabia has the potential and is eagerly beginning to play a more important role in the world arena. Beyond capability it is a question of willingness to get involved in costly matters of world affairs.
In the 1940s, post-World War 2, the entry ticket into the Security Council of the UN required the possession of a nuclear weapon of mass destruction. As this technology and the ban of these weapons is no longer really working internationally, we shall have to rethink the requirement of an entry ticket. A radical solution would be to ban all countries who own nuclear weapons from the international assembly of the people of a peaceful world. In theory this sets an incentive to dismantle the deadly threats of nuclear weapons. As a side-effect, nuclear power plants used to enrich uranium for use in weapons would no longer be necessary as well.
Political theory allows us to rethink the bi-polar world, which is no longer bi-polar for some time now (perhaps only in the psychiatric sense of the word). The multi-polar world has to be prepared. It is a question of political design. The toughest issue is not only the design, but the implementation of the transition to distributed power systems with multiple rising and failing states or actors. It might get ugly before peace will reign.

Political theory

In the Handbook of political theory, Chandran Kukathas (2004, pp.250) explains the uneasy relationship between nationalism and multiculturalism in politics and political theory. The Russian war in Ukraine can be considered as a way of suppression of multiculturalism in Russia by negating the right of Ukraine to be an independent nation. As Russia is not allowing “group rights” (Offe, 1998) for Ukrainians or other minorities like the Chechens within Russia, the secession of regions is a permanent threat to the survival of the Russian state.
“How the many can live as one remains a salient question in political theory” (Kukathas 2004, pp.261). Democracies have squared this circle with reference to federalism. Remember, the very foundation of the United States of America has been built on the Federalist papers. Organising regional diversity is at the heart of democracies’ success and failure. In most democratic political systems 2 chambers have contributed to make the voices of the regions heard at the central level. It remains an obvious question to doubt the possibility of authoritarian states to ensure unity despite diversity.
In non-explanatory theory, if we consider those still a theory, we could derive a hypothesis that authoritarian states will eventually fail to accommodate multiculturalism or allowing sufficient diversity and still survive as political unity. The history of the fall of empires is full of examples in this respect. Another more internal threat has been and still is corruption. Corruption was on the list of issues mentioned in the June 2023 uprise and defeat of the rebel military group “Wagner” in Russia. Non-explanatory political theory might still offer some clues, rationale and hypotheses to stimulate the analysis of international relations. The survival of democracies and/or authoritarian regimes estimated on the basis of huge data bases are hard to come by or lack crucial indicators or timeliness. Such reasoning makes the referral to Clausewitz as theorist of war still a common point of reference. The recent example of Russia , however, shows acting in the national interest can easily be claimed by multiple actors in international politics. (Image: House of European History, Brussels).

Ukraine Diary

The gallery curated by Dr. Justyna Napiórkowsak in Brussels has another ongoing exhibition with art work from Ukrainian artists. As before in the exhibitions on the war of Russia in Ukraine, they put a major emphasis on the independence and resilience of Ukrainian art despite the ongoing war. To keep a diary of atrocities, but also survival and resistance to violence by Ukrainians, is a great effort. It stems primarily from artists that struggle to find adequate material to keep working or not to succumb to the participation in active war or military defence efforts. Using soft colours, water colours, has a rather symbolic meaning, after the inundation caused by the explosion of the huge water reservoir on Ukraine’s territory. Producing art in form of a diary, like reporting daily to yourself and the outside world as well as later born persons, has an important historic function, too.
No less than the “Diaries of Anne Franck” comes to our mind when thinking about a diary during war time. Russia’s attempt to eradicate Ukrainian culture is bound to fail. We shall cherish the Ukrainian diaries from the war time now and later. Thanks for reminding us of this collector’s duty to support the artists, writers and people of Ukraine.

Grenzgang 2

Innerhalb vom Kern Europas ist der physische Grenzübergang kaum merkbar. Sobald es um die Regeln der sozialen Sicherung, Beschäftigung, Selbständigkeit geht oder der Unternehmensbesteuerung werden die bilateralen Regeln bereits viel komplizierter. Falls 3 und mehr Länder ins Spiel kommen wird die Lage ziemlich unübersichtlich oder zum Expertentum. Staatsbürgerin im Land A und Staatsbürger im Land B, arbeitend im Land C dürfen sich über einen Dschungel an Regeln freuen, der Kafkaeske Verhältnisse hoch 3 produziert. Irgendwo klemmt dabei immer etwas. Dabei hatte die Regulierung CE Nr. 883/2004 über die Koordinierung der nationalen Systeme der sozialen Sicherung doch weitgehende Konkretisierungen hervorgebracht und Sicherung der Bestandsrechte hervorgebracht.
Wie so oft liegen die Schwierigkeiten im Detail und darin sind die jeweilig zuständigen Verwaltungsbeamten, wenn die denn erst einmal herausgefunden wurden, eine Hürde, die es zu meistern gilt. In der jeweiligen landesüblichen Verwaltungssprache, versteht sich von selbst, inklusive regionaler Besonderheiten.
Während juristisch der Grenzübergang von Beschäftigten, Selbständigen und Unternehmen jeweils geregelt ist, ergibt sich aus einer juristischen Figur des „salary split“, also eine beschäftigte Person bei 2 Arbeitgeberinnen eine Lücke in der Zuständigkeit. Diese besteht gleichfalls in den meisten Ländern der EU. 2 Teilzeitjobs zu 50% lassen sich sozialversicherungsrechtlich nicht fair darstellen. Die zweite Lohnsteuerkarte und Besteuerungssätze, na wir ahnen schon, was das für Betroffene heißt.
Unternehmen und der Staat machen es sich einfach. Eine Konfiguration „Mulitplication des employeurs“, mehrere Arbeitgeberinnen, ist nicht wirklich adäquat vorgesehen (Crabeels, 2008 S.272). Dadurch werden viele, besonders junge Beschäftigte systemisch in ihrer beruflichen Findungsphase benachteiligt und in die Selbständigkeit oder gar die Scheinselbständigkeit gezwungen. Dabei brauchen wir dringend diese dynamischen GrenzgängerInnen in Europa mit ihren grenzenlosen Ideen, Enthusiasmus und Gestaltungswillen.
Neben diesen „high potential Grenzgängerinnen“ gibt es viele Beschäftigte, die bereits in einem Mitgliedsland der EU mehrere Beschäftigungsverhältnisse ausüben müssen, da sie von einem Job ihren Lebensunterhalt nicht bestreiten können. (EU Statistik Jugend Eurostat,2022).

Grenzgang

Eigentlich wissen wir gar nicht mehr, was eine Grenze im Schengenraum der EU darstellt. Viele Arbeitende überqueren eine Grenze täglich, sozusagen als Arbeitsweg. Die Logik dafür ist vielfältig. Mal gibt es mehr oder besser bezahlte Arbeit im Nachbarland, mal ist es der preisgünstigere Wohnraum oder die Liebe. Diese Herzstücke Europas haben viel Selbstverständlichkeit, aber auch spezifische Belastungen mit sich gebracht. Das Europa der Grenzregionen bleibt für die meisten eine ständige Herausforderung. Regeln gelten meist noch nach Ländergesetzen. Sozialversicherungen sind ein besonderes schwieriges Thema. Das betrifft gerade die vielen Grenzüberschreitenden besonders hart. Misstrauen bei Sozialkassen ist die Regel und nicht die Ausnahme. Da wird dann schnell doppelt von Grenzgängerinnen abkassiert. Bei großen Katastrophen, bei denen die Medien überall hinsehen, stellen sich viele Politikerinnen ein. Für das Klein-klein des täglichen Lebens fehlt oft die Nachhaltigkeit der Handelnden, um wirkliche Verbesserungen zu erreichen.
Seit Jahren fahre ich beispielsweise in der schönen Grenzregion bei Aachen und Vervier mit dem Zug zwischen den beiden Ländern, doch dort scheint seit Jahrzehnten die Zeit still zu stehen. Wer mit ICE oder THALYS von Metropole zu Metropole fährt, rast mal eben vorbei. Die Bürgerinnen vor Ort dürfen sich zu Recht etwas abgehängt fühlen, bleibt für sie doch meist nur der Lärm der vorbeirasenden Züge. Zwischen Deutschland und Belgien gibt es für Grenzgängerinnen noch eine richtige Bimmelbahn. Sie wissen schon, die fährt langsam und kommt trotzdem an. Und das stündlich hin und her oder kreuz und quer. Leider wächst Europa selbst im Zentrum nur sehr gemächlich zusammen. Ob wir so viel Zeit noch haben, bevor undemokratische Kräfte die Uhren wieder zurückdrehen, bleibt eine Überlebensfrage für uns überzeugte Europäer.

Medical Personal

Like in many other professions, medical doctors and nurses are in short supply. Labour markets in Europe have changed from high oversupply (unemployment) to shortages of mainly skilled persons. 20 years ago, such skill needs were already visible in projections. In 2023 the discussion of skill needs is spreading to more and more professions. The medical professions are no exception to this rule. Even the best paying jobs will not be filled in sufficient numbers. The German institute for the medical profession (www.zi.de) forecasts, in my opinion, a lower bound estimate of medical doctors for the year 2030. Their projection is based on an underestimation of the growth of the population (war in Ukraine), which they see as about constant until 2030. From the recent figures on the population of Germany there were 1.5 million persons moving to Germany and a loss of more deaths than births of 327.000. Migrants are on average much younger than the German population and, therefore, overall aging of the population is reduced. Tough news for those daring to do projections. Thanks to the immigration of younger persons there will be more persons contributing to health insurance and pay for the higher costs of a rapidly aging population.
Following the projections of the distribution of specialists needed, we shall need more urologists, eye specialists and substantially more psychotherapists. This originates in the aging of the population and the higher demand of younger persons (post Covid-19), as well as refugees, in need of psychotherapeutic assistance.
So-called hog-cycles tell us for the medical profession, with a “production time” of 10 years for a medical doctor, that we are already far behind schedule to address the future skill needs of the aging medical profession and population. This strengthens the need to get serious about prevention of avoidable diseases. Stop reading here, stand up and go for walk. It is the best-practice-solution taking account of the aging of the medical profession and the population as a whole.

Lebenserwartung

Die Lebenserwartung ist in Deutschland trotz überdurchschnittlicher Ausgaben des Gesundheitssystems nur unterdurchschnittlich. Das ist die Schlussfolgerung der Pressemitteilung des Bundesinstituts für Bevölkerungsforschung. Der Mortalitätsforscher Pavel Grigoriev führt das auf die besonders bei Männern (50-64) erhöhten Sterblichkeit aufgrund von Herz-Kreislauf-Erkrankungen zurück. Eine gesunde Lebensweise ist dabei ursächlich für eine längere Lebenserwartung. Walking und Ernährung spielen eine große Rolle bei der gesunden Lebensweise. Also Auto stehen lassen und öfters selber Essen zubereiten. Klingt doch einfach, berufliche und schulische Voraussetzungen dazu fehlen aber weitestgehend in Deutschland. Zu viele Süßgetränke verstärken die ungesunde Lebensweise. Das wissen wir eigentlich lange. Dennoch fällt es schwer, solche Routinen in den Alltag zu integrieren.
An der Tatsache eines überteuerten Krankensystems im Vergleich zu unseren Nachbarländern werden wir ebenfalls arbeiten müssen. Prävention, statt hochtechnisierte Versorgung in häufigen Krankheitsfällen ist die einfache Lösung. Jede Autoversicherung bietet hohe Schadensfreiheitsrabatte für mehrjähriges Unfallfreies Fahren. In der Krankenversicherung könnte das stärkere Berücksichtigung finden.
Der Gesundheitsschutz am Arbeitsplatz könnte ebenfalls durch eine stärkere Beteiligung der unternehmerischen Verantwortung herangezogen werden. Arbeitnehmende im Arbeitsprozess verschleißen und dann die Gesellschaft die höheren Kosten tragen lassen, ist ein unfairer Deal. Große Baustellen warten darauf, angepackt zu werden. Anhand der Daten des Bundesinstituts für Bevölkerungsforschung und des MPI für demografische Forschung lässt sich der Fortschritt der Lebenserwartung seit 30 Jahren aufzeigen. Die 4-6 Jahre längere Lebenserwartung der Frauen gibt zu denken. Daran hat sich über die Jahrzehnte wenig geändert. Die Männer haben zumindest ein klein wenig aufgeholt oder sollten wir sagen, dazugelernt.

Special 3

The special Olympics (SOWG) are competitive games just like other Olympic Games. The athletes compete with all it takes to win. Some with more success than others, as usual. The disciplines of Volleyball and Basketball give an advantage to mostly tall persons. Few exceptions are created by good team play. The warming-up exercises were already a challenge for the athletes preparing them very well for the match to come. Once in the game, all concentration is focused on the sport. Extraordinary athletes are no exception to the rule. There competition succeeds to get or to keep persons focused on the specific task.
In rhythmic gymnastics the musical talent is asked to complement the physical effort. Gracious moves, difficult with a ball, ring or rope need to be coordinated to the rhythm of the music. Great to see the special athletes live up to the challenge, too. The roaring applause in the sports hall is surely encouraging them to continue on their athletic trajectory. The special athletes encourage everybody to keep exercising to make the most of our capabilities. Thanks for the lesson.
Additionally, in a hall next to the SOWG non-competitive games were presented as an accessible form of fun exercises that invite everybody to move and enjoy. Just being together and moving together is the basic form of happiness. Even having fun is exhausting after a long day and still lots to do in Berlin for all the teams on their way back to the hotels. sowg video
sowg video basket1.

Shake Hands

Shaking Hands, like rubbing noses or kissing cheeks are social practices you will have to master depending on which society you live in. After the Covid-19 crisis we have become more careful to shake hands or exchanges of touching another person. The handshake has another medical function as well. If we are approaching eachother to shake hands, we prepare our handgrip mentally and physically.
It is exactly the strength of the handgrip, which serves as measure of another person’s health. Believe it or not, your handgrip is telling a lot about your general muscle strength. Of course, it is possible to conceal the true strength, but most people seem to have an intuitive handgrip with less mentally controlled strength of application. Medical studies mostly confirm the correlation of handgrip strength and frailty in older persons, predominantly for women. The conclusions of these studies lead us to a preventive approach of exercising your hand grip strength and other muscles in order to reduce frailty and to increase even life expectancy. After Covid-19 we should return to shaking hands more forcefully than ever before. Exercising by shaking hands with yourself or shaking your foot with your hand as alternative are fun exercises. The scientifically confounding effect of laughing while exercising might additionally cheer you up. Balance and joy are additional features of a healthy longevity. (Image: Extrait from Degas, copyright BnF, 2023)
Source: Santos S and Paúl C. Handgrip Strength and the Perceived Risk of Institutionalization, Hospitalization and Death. Journal of Fam Med. 2022; 9(4): 1302.