CEI Today: The Basel Cliff, America or Europe?, and the union behind Black Friday protests at Walmart
ECONOMIC FALLOUT FROM BASEL AGREEMENT - JOHN BERLAU
As if the “fiscal cliff” were not enough, banks of all sizes — and in turn the consumers and businesses that rely on their credit — also face the “Basel cliff.”
The Basel cliff is not a precipice in Switzerland, the beautiful country in which the city of Basel is located. Rather, the term refers to the potential economic fallout from the implementation of the Basel III agreement, an international accord that is supposed to make the international banking system more stable. Unfortunately, Basel III is likely to dramatically increase the costs of mortgages and small business loans while making the banking system less stable.
The U.S. plans to begin implementing Basel III as early as January.
AMERICA OR EUROPE? - MATT MELCIORRE
Despite the recent and significant growth of its government, America remains quite far from throwing away capitalism in favor of a European-style social market economy.
And not only does America's relatively freer economy offer more opportunity and wealth than those of Europe, its larger private safety net offers more individual choice.
In fact, there seem to be many more Europeans who prefer American capitalism to their own system than Americans who prefer the European way. Today, there are nearly 10 times more working-age Europeans living in the U.S. than vice versa, according to data from the Organization for Economic Cooperation and Development.
BLACK FRIDAY WALMART PROTESTS - CRISSY BROWN
As the union-backed groups OUR Walmart and Making a Change at Walmart gear up to make a statement this Black Friday, the company took action — and filed a complaint with the National Labor Relations Board.
The union creating the stir is the United Food and Commercial Workers, which defines it self as “America’s neighborhood union – standing together to improve the lives and livelihoods of workers, families, and communities.”