Introduction: In December 2008, after the current economic crisis erupted, Walden Bello speculated that capitalist elites might respond with a new political project: global social democracy. By injecting into global governance a greater concern for equity and sustainability, global social democracy could avoid the evident failure of neoliberal policies.
This research note examines whether the status of EU-U.S. military relations confirms the increasingly popular notion of a transnational capitalist class, integrated on a global scale and accompanied by the cessation of interimperialist rivalry. It focuses on two cases: formation of the European Security and Defense Policy and the setting-up of an EU armaments policy as well as the respective transatlantic struggles over the nature of these two policies. It concludes by highlighting empirical inconsistencies in the transnationalist argument, as demonstrated by the continuation of transatlantic competition over the formation of a separate EU military-industrial identity.
Paul Krugman, stuck in the old Keynesian rut amidst its blinders. The recession would be over, he says, if only the government ran more and bigger deficits to provide the needed fiscal boost. If only the Obama people and those crazy Republicans were less afraid of such bold government action, less befuddled by ideology, and less ignorant of economics.