Home
/
RELIGION & LIBERTY ONLINE
/
Acton Commentary — Europe: The Unjust Continent
Acton Commentary — Europe: The Unjust Continent
Jul 7, 2026 5:38 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
Acton Line podcast: Charles Malik & Christ and Crisis with Dylan Pahman
Charles Malik, the Lebanese diplomat and one of the drafters of the Universal Declaration of Human Rights, was intimately involved in the crises of his own day, from the challenge of munism to the internal challenges and problems of the West itself.For Malik all of our challenges take the form of crises which, at their deepest levels, reflect Christ’s judgement. His profoundly theological vision of global crisis, one in which crises are ongoing in the lives of individual believers as...
Acton Line podcast: The socialist temptation with Iain Murray
In his new book, The Socialist Temptation, author Iain Murray examines the resurgence of socialist ideology in America and across the world. Seemingly discredited just thirty years ago by the failures of the Soviet Union and Communist block Eastern Europe, socialism has seen a revival of support and popularity in the West. Murray sets out to explain why the socialist temptation endures even after it’s own massive failures, the inconsistencies in socialist thought that prevent it from ever working in...
David French’s Christian vision for economic freedom
Given the recent wave of populism and protectionism sweeping across the American Right, we see increased criticism of free markets among conservatives plete with lengthy debates about the purpose of the nation-state, the role of the market in civil society, and whether classical liberalism has any enduring value in an age of technological disruption and globalization. Meanwhile, the Left continues its critiques as it always has, leading to a peculiar alliance against capitalism among otherwise ideological foes. Each side is...
Are educational models heading toward creative destruction?
Some 1.2 billion students around the world experienced school closures and an inevitable move to online learning or homeschooling toward the end of the 2019-2020 school year. Graduations and end-of-year celebrations were canceled due to COVID restrictions on public assemblies. This may have been good way to limit the contagion, but did it bring unintended consequences? Was all the creative destruction of traditional education more harmful than it was helpful? Now with the coronavirus lingering longer than most people thought...
Economic freedom means longer life, lower infant mortality, and less poverty: Report
Economic freedom is strongly tied to human flourishing, longevity, and even rates of survival, according to a new study. The Fraser Institute released its 2020 “Economic Freedom of the World” report on Thursday and, once again, the Canadian think tank found a strong correlation between free-market economics, prosperity, and overall levels of public health and well-being. Academic researchers have rated 162 nations based on five criteria: Area 1: Size of Government—As spending and taxation by government, and the size of...
Jimmy Lai innocent, Pope Francis silent on Hong Kong
A court has found Hong Kong dissident Jimmy Lai not guilty of intimidation. But that does not mean he, or Hong Kong, can rest easy – especially as he faces the prospect of life in prison without any public support from the most important institution in his life: the Vatican. As global political and thought leaders denounce Beijing’s encroachments, Pope Francis remains uncharacteristically silent. Lai, the self-made billionaire publisher of the Apple Daily newspaper, could have been sentenced to five...
Hong Kong’s Catholics cancel prayer for fear of offending China
China’s draconian “national security law” has not just stifled the free speech of pro-democracy politicians, teachers, and journalists, it has now shut down a prayer campaign called by Roman Catholic hierarchy. Catholic bishops in Hong Kong canceled publication of a prayer for fear of offending officials in the Chinese Communist Party. This summer, the Federation of Asian Bishops’ Conferences asked its members to pray for the increasingly oppressive situation in Hong Kong. China’s violation of the “one country, two systems”...
From CARES to worries: The post-COVID economy calls for bold entrepreneurship
After months of facing the coronavirus, Americans now face a spreading virus of evictions. More than 5,845,000 Americans have tested positive for COVID-19 since it reached the United States. As a result, almost 18 million people have lost their jobs or were forced to remain at home in order to protect themselves and their families from the novel coronavirus. Beginning at the end of March, the CARES (Coronavirus Aid, Relief, and Economic Security) Act, passed by Congress and signed into...
How to beat the ‘social recession’ of COVID-19
Before the COVID-19 crisis began, America was already facing a severe loneliness epidemic – marked by decades-long increases in suicide and chronic loneliness and declines in marriage munity attachment. Now, amid flurries of sweeping lockdowns, the struggle has e harder still, pushing any remnants of munity deeper into the confines of social media. We are facing a “social recession,” argues the Manhattan Institute’s Michael Hendrix, driven by a mix of stress over public health, economic anxiety, and the isolating effects...
The government should scratch the lottery
State lotteries may seem like a good thing. They raise money for government programs like public schools. People contribute their money voluntarily (unlike most forms of taxation), which removes the moral weight involved in forcing people to hand over their money. They are fun games for the participants and can be life-changing for the winners. These reasons lead many people to support – or at least tolerate – state lotteries. But the lottery deserves neither our support nor our toleration,...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved