The cliché runs that history repeats itself. The late Per Jacobsson was fond of stating that those who are ignorant of history are doomed to repeat it. This can be disproved in two ways: (1) By finding people with a vivid memory of history who none the less slip into repetitive behavior. An example might be the French who pulled down sterling in 1930 with dire consequences for the world, and now seem interested in undermining the dollar. Or (2), by uncovering an historical analogy which has escaped general notice, and seeing if the same story unfolds itself later. The second path is the one followed here. The mass migration now taking place from Southern to Northern and Western Europe-from Portugal, Spain, Italy, Greece and Turkey to Switzerland, France, Germany and Belgium-can be measured against the movement from Southern and Eastern Europe to the United States between 1880 and 1913 for similarities and differences. It is particularly instructive to observe whether previous pitfalls have been avoided, and if so, whether by accident, by circumstances or because of the increased social consciousness of the human race.
The cliché runs that history repeats itself. The late Per Jacobsson was fond of stating that those who are ignorant of history are doomed to repeat it. This can be disproved in two ways: (1) By finding people with a vivid memory of history who none the less slip into repetitive behavior. An example might be the French who pulled down sterling in 1930 with dire consequences for the world, and now seem interested in undermining the dollar. Or (2), by uncovering an historical analogy which has escaped general notice, and seeing if the same story unfolds itself later. The second path is the one followed here. The mass migration now taking place from Southern to Northern and Western Europe-from Portugal, Spain, Italy, Greece and Turkey to Switzerland, France, Germany and Belgium-can be measured against the movement from Southern and Eastern Europe to the United States between 1880 and 1913 for similarities and differences. It is particularly instructive to observe whether previous pitfalls have been avoided, and if so, whether by accident, by circumstances or because of the increased social consciousness of the human race.
The economic, social and political importance of the two movements is difficult to overstate. In both cases, cheap labor fed economic growth by holding down wages, relatively at least, and maintaining high rates of profit, investment and expansion. The migrants constituted the "reserve armies of the unemployed" which Marx believed were necessary for capitalism to feed on. The Marxist model is by no means the only road to the growth of income-over-all, but also, be it noted, per head as well. In some situations it is possible for economic growth to be stimulated by mass emigration: clearing up redundant labor, or disguised unemployment, stimulates the economy by increasing the return to efficient utilization of resources, and in particular encourages the adoption of machinery which saves total resources as well as labor. Just as Ireland benefited from emigration in the nineteenth century, so Southern Italy, Spain and Greece enjoy high rates of economic growth today while their citizens contribute to growth in the North...
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The Baltic States of Estonia, Latvia and Lithuania, which had been independent between the two world wars, were annexed by the Kremlin in June of 1940, during the dramatic days when Paris fell to the Germans, and became republics of the Soviet Union. In thus reversing the course of modern Baltic history, Moscow separated the Baltic countries not only from Western Europe, toward which they had been oriented in international politics, but also from the nations of Central and Eastern Europe with which they shared most of their social and cultural characteristics. At present one of the main Communist propaganda themes aimed at the postwar generation of Baits is that the independence of their parents was a historical mistake, a deviation from their manifest destiny to be part of Russia. In the Soviet view, Baltic countries should not be independent; their national survival and progress can be assured only by the Leninist nationality policy of the U.S.S.R. Under Khrushchev, the goal of this policy was to establish melting-pot conditions for "the creation of a single nation with a single native [Russian] language."[i] Khrushchev's successors have continued to pursue this objective.
Germany, the grandmother of social welfare states, is being forced to take a hard look at its long tradition of generous social benefits for workers (and now for eastern Germans as well). Lengthy paid vacations, guaranteed jobs, cash-heavy unemployment benefits, and labyrinths of regulations are conspiring to set up daunting hurdles to a competitive economy. Starting a new business is laborious; hiring workers is expensive compared with elsewhere; and the country's once-renowned education system is stagnant. Even worse, when German baby boomers are ready to claim their hallowed pensions, the money may not be there. Germans will have to pen a new social contract for the 21st century.
With the EU's addition of ten new members and a likely slowdown in U.S. productivity growth, Europe has a chance to overtake the U.S. economy. To actually do so, however, it must boost its competitiveness with some much-needed reforms.

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