FREE-MARKET PRINCIPLES: A LETTER TO THE ECONOMIST (January 5, 2011)

Having adopted the euro in January 2009, Slovakia is getting edgy about the single currency. As you report, the country refused to join the bailout of Greece (“Bratislava’s Plan B,” January 1, 2011). Irked by the European Union’s lenience toward profligacy, some senior Slovak politicians are even threatening to dump the euro. Although Slovakia has agreed to the broader bailout fund for the euro-zone, they now want new rules to allow countries to go bankrupt. “With the private sector taking its share of the pain,” you add sarcastically. “Free-market principles can be irritating,” you conclude haughtily, “especially when people start taking them literally.” What is this? A lame joke? Rather than ridiculed, Slovaks should be congratulated for their attitudes. If your article is a joke, it must be on the Union, instead. And the euro as its greatest achievement to date. To be sure, free-market principles can be a joke, especially when people do not take them literally.