Conclusion

Conchusion interventionist age is an age of international conflict. Governments motivated by socialist and interventionist ideas conduct policies of "welfare" and protection through tariffs, licenses, quotas, exchange controls, and many other welfare measures, all of which promote economic nationalism. Foreign trade becomes increasingly political. Changing political conditions and positions of powerful pressure groups in the national parliaments determine foreign trade and the opening or closing of foreign markets. But through intervention a government hurts not only the vital interests of its own people, but also those foreign nations that take part in the world cooperation and division of labor. Thus, international conflicts arise. Agricultural and industrial protectionism, for example, lead to restriction of imports which cause domestic prices to rise and depress world market prices. Since nearly all governments resort to such policies for the sake of domestic protection or retaliation against foreign policies of protection, world trade is in a state of perpetual readjustment and world relations become increasingly erratic and chaotic.

Mankind is yearning for international cooperation and peace. Men dream of a united Europe as an assurance of the preservation of Western civilization. Many efforts of unification are initiated by prominent statesmen and intellectual leaders and some gain public support. Governments adopt the suggestions and endeavor to realize them. Institutions are set up for the purpose of facilitating unification plans. But again and again the numerous discussions and toplevel programs for unification prove fruitless and in vain. For some mysterious reason the obstacles to true unification seem insurmountable. 317 318 HOW CAN EUROPE SURVIVE What is the reason for this failure? Why do the institutions set up for the purpose of unification fail so dismally in their objective? Why can the dream of European unification with its substantial public support not be realized? The answer is simple. Socialism and the welfare state irreconcilably conflict with the principle of unification. Where there are policies of government welfare, there can be no interstate unification. And where people wish to unite, there can be no government interference with the market economy.

This is the crux of the problem of unification. The principle of central planning and public welfare requires government to maintain wage rates by limiting the labor supply through immigration laws and other institutional restrictions. The principle of unification, however, assumes free mobility of labor that brings about equalization of labor productivity and wage rates. The principle of central planning and public welfare requires government to raise costs of production for purposes of social welfare, security, and other social objectives. These measures depend for their effectiveness upon complementary trade and migration barriers. The principle of unification, however, requires government to abolish all barriers and refrain from raising costs of production so that the competitive position of domestic industries will not be endangered. The principle of central planning and public welfare requires government to protect depressed industries from foreign competition.

Unification, however, presumes absence of protective barriers. The principle of central planning and public welfare requires government to expand credit, inflate the money supply, and control foreign exchange transactions. Unification, however, presumes stable and freely convertible currencies. The principle of central planning and public welfare requires government to control capital investments and capital movements. Emigration and "flight" of capital are prohibited. Unification, however, presumes freedom of migration for capital. It is obvious that the welfare state is incompatible with interstate unification, which requires the European nations to make a momentous decision. They must choose between government welfare and interstate unification. They cannot have both. A realistic appraisal of Europe's problems and in particular the problem of unification cannot fail to fill us with deep pessimism.

The majority of Europeans believe in socialism or the welfare state. And all European governments are committed to policies of interference with business. It is obvious that there can be no unification.

CONCLUSION 319 But communism is moving rapidly in its conquest of the world and its vanguards have reached the heart of Europe. The future of Western Europe is laid bare and the ways of life which are the heritage of Western man are at stake. Unification is a matter of vital necessity. "Unite or perish" is the watchword of Europe. Individual liberty or slavery is the choice.