When the New Left emerged in the 1960s, something else was born that would mark American elites for decades thereafter: the notion that social-democratic Western Europe was far superior to the capitalist United States. Pity the poor American professor whose every junket to a European academic conference was marred by his continental colleagues' sneering over cocktails about his nation's shame du jour—Vietnam, Watergate, Iraq—or about American racism, capital punishment or health care. For much of the American left, Western Europe was nothing less than an abstract symbol of progressive utopia.

This rosy view was never accurate, of course. Europe's socialized health care was blighted by outrageous (and sometimes deadly) waiting lists and rationing, to name just one...