About 100 years ago, the First World War Great War began in Europe. I have written on this topic before (see The European experiment in context and Remembrance Day in the eurozone). European countries suffered devastating losses of young men in this "war to end all wars". In all, Wikipedia reports that military and civilian casualties totaled over 37 million dead and wounded.
The United States was not involved in the First World War in the same manner as the European powers. So let me give my American friends some context. In a single battle for the Verdun fortress, which spanned several years, the casualties of both sides approached a million men. Compare and contrast those figures to American casualties in Vietnam and Korea.
Here in Canada, the loss of life was equally appalling (via Globe and Mail):
Canada’s commitment to the First World War was staggering when viewed from the 21st century: from a nation of eight million, more than 600,000 Canadians were mobilized in the war effort.
By the end of the war, more than a third were killed or wounded. Upwards of 66,000 died and more than 172,000 were injured.
Today, if you were to visit the Vietnam Memorial in Washington, DC, you will see the names of the 56K US service members who lost their lives in that conflict. If the same proportion of war dead to population for Canada in the First World War were to be applied to the US losses in the Vietnam War, the equivalent figure would be roughly 2.5 million dead, or 45 times the actual count.
So is it any wonder that after the carnage of the First World War and the Second World War, the countries of Europe came together and said, "Enough!"
Thus, the EEC and later the EU was born. Today, that project has largely succeeded. We have seen no major European conflict since 1945, the end of the Second World War. The formation of the European Union has kept the peace. The political elite of Europe, despite all the bickering, are still committed to that bigger than life myth of the formation of the EU.
For overseas analysts who look at Europe and only focus on the cost of bailing out Greece, Portugal, etc. Don`t ever forget the political glue that holds Europe together.
Lest we forget.
Cam Hui is a portfolio manager at Qwest Investment Fund Management Ltd. ("Qwest"). This article is prepared by Mr. Hui as an outside business activity. As such, Qwest does not review or approve materials presented herein. The opinions and any recommendations expressed in this blog are those of the author and do not reflect the opinions or recommendations of Qwest.
None of the information or opinions expressed in this blog constitutes a solicitation for the purchase or sale of any security or other instrument. Nothing in this article constitutes investment advice and any recommendations that may be contained herein have not been based upon a consideration of the investment objectives, financial situation or particular needs of any specific recipient. Any purchase or sale activity in any securities or other instrument should be based upon your own analysis and conclusions. Past performance is not indicative of future results. Either Qwest or Mr. Hui may hold or control long or short positions in the securities or instruments mentioned.