For all intents and purposes, it can be safely argued that modern free market economics, began in Europe, Britain to be exact, after all Britain is the birthplace of Adam Smith, who ushered in a new ear of thinking with his treatise, “the Wealth of Nations.” Smith and a growing number of philosophers, politicians, economists and ordinary businessmen saw the mercantilist system of the 1700s as an inferior system that inhibited innovation and growth. The crucible upon which mercantilism is founded is protectionism. This economic principle is fundamentally flawed and had fallen largely out of favor by the 19th century, during this era modern capitalism emerged as a major force. Capitalism, like all human endeavors, can be equally harmful if left to excess. Fundamental is the rule of law. Today, nations in Western Europe, Latin America and elsewhere have given to excess again and have begun to re-embrace the failed system of socialism. Socialism, like Fascism and Mercantilism, requires an active and dominant role for the state. Socialism inhibits the free exchange of goods and services. Today, Europe is again the battle ground for economic theory as the forces of socialism are pitted against the advocates of the free market system. The players, however, aren’t easily identifiable. The socialist countries are nations like France, Germany, the Netherlands, etc, while the capitalists are represented by the former Soviet bloc (Poland, Hungary, Romania, etc…). The nations of Western Europe have attempted to solve their country’s ills through increasing social economic and political control. This constant intervention, however, has failed to produce the heaven on earth its advocates have championed. Indeed, in the countries where such heavy-handed socialism is practiced, the results are far from encouraging. The nations of Western Europe are plagued by an increasingly stagnant economy, low birth rates, unemployment, growing crime, and social unrest. Meanwhile, the Eastern Bloc has learned from the failures of the west. They have adopted a model, quite similar to that of the United States, one that limits government intervention, providing individuals with incentives to create, rather than depend upon the state. The governments of Poland, Romania, Slovakia, the Baltic states, etc…have all taken this lessen to heart by lowering taxes, reducing government expenditures, loosening bureaucratic red tape and encouraging growth. The results are unquestionable. Today, growth in Eastern Europe far exceeds that in the west. Regardless of the facts, the western states, cannot and will not change. Their populations have grown far to slothful and dependent upon the government trough. So much so that the mere mention of “reform” sparks protests and strikes.