Great summary of the reasons why social democracy is not likely to return. Of the four main reasons, multiculturalism and globalization seem to be far more important. But isn’t Canada showing that social democracy has never actually ceased to exist?
I agree with Bruce's description of the past 40 years. The union power was crushed politically in the UK first, then by Reagan, and then also by Mitterrand in 1982-83, and Felipe Gonsalez in Spain. The last two were socialists, of course. Globalization and outsourcing eroded it further, and the pendulum swung too strongly in the other direction. Today' s conditions are, I think, very different from those in the 1950-60s when the Left and the Unions defined policies on education, health, hours of work, paid vacations, social security etc. The Left needs to find a new model. Having said all that, Offer and Soderberg's book is excellent in presenting the arguments for (and the logic of) social-democracy. The Nobel Prize, in my opinion, does not play so much of a role in the book as the title would suggest.
Great newsletter, as always. I wonder how MMT or proposals like the CBDC will allow us to rethink a better system for everybody. At this moment, it seems like they are pushing through the noise and gaining some momentum.
Excellent analysis, although too many forget the 1970s when Union power had simply got out of hand. Socialism wasn't the egalitarian paradise where redistribution was based on equitable principles. Coal strikes in the UK were used to hold the country to ransome. "The new Labour government increased miners' wages by 35% immediately after the February 1974 election.[10] In February 1975, a further increase of 35% was achieved without any industrial action." It was these and other excesses of Union power that established conditions for the rise of neoliberalism, not the abuse of the Nobel prize.
These excesses of Union power took place in a different world of largely protected national economies and full employment. Today Globalization and Global arbitrage have smashed Union power irrevocably. Today it is the employers who have complete dominance over workers, and the labour share of GDP has been vastly eroded.
This might have created the conditions for the return of social democracy, but instead voters have turned to the right, in the form of Trump and Brexit. This is largely because the right recognised the tide against Global neoliberalism years ahead of the left, and responded with nationalist policies that voters wanted.
Branko's comments about social diversity are highly relevant here, as the left flounder in search of better policies. Their best chance would be to reinvent social distribution on a platform of Basic Income, paid as a right of citizenship. This is by far the best way to restore the balance of power between workers and employers, yet such an outcome is unlikely. Socialist egalitarian principles will leave them arguing that migrant workers should be given exactly the same rights as citizens - a completely impractical position in an international labour market. The irony is that by clinging to these principles, the left will continue to be kept out of power.
Great summary of the reasons why social democracy is not likely to return. Of the four main reasons, multiculturalism and globalization seem to be far more important. But isn’t Canada showing that social democracy has never actually ceased to exist?
I agree with Bruce's description of the past 40 years. The union power was crushed politically in the UK first, then by Reagan, and then also by Mitterrand in 1982-83, and Felipe Gonsalez in Spain. The last two were socialists, of course. Globalization and outsourcing eroded it further, and the pendulum swung too strongly in the other direction. Today' s conditions are, I think, very different from those in the 1950-60s when the Left and the Unions defined policies on education, health, hours of work, paid vacations, social security etc. The Left needs to find a new model. Having said all that, Offer and Soderberg's book is excellent in presenting the arguments for (and the logic of) social-democracy. The Nobel Prize, in my opinion, does not play so much of a role in the book as the title would suggest.
Outstanding.
Great newsletter, as always. I wonder how MMT or proposals like the CBDC will allow us to rethink a better system for everybody. At this moment, it seems like they are pushing through the noise and gaining some momentum.
Excellent analysis, although too many forget the 1970s when Union power had simply got out of hand. Socialism wasn't the egalitarian paradise where redistribution was based on equitable principles. Coal strikes in the UK were used to hold the country to ransome. "The new Labour government increased miners' wages by 35% immediately after the February 1974 election.[10] In February 1975, a further increase of 35% was achieved without any industrial action." It was these and other excesses of Union power that established conditions for the rise of neoliberalism, not the abuse of the Nobel prize.
These excesses of Union power took place in a different world of largely protected national economies and full employment. Today Globalization and Global arbitrage have smashed Union power irrevocably. Today it is the employers who have complete dominance over workers, and the labour share of GDP has been vastly eroded.
This might have created the conditions for the return of social democracy, but instead voters have turned to the right, in the form of Trump and Brexit. This is largely because the right recognised the tide against Global neoliberalism years ahead of the left, and responded with nationalist policies that voters wanted.
Branko's comments about social diversity are highly relevant here, as the left flounder in search of better policies. Their best chance would be to reinvent social distribution on a platform of Basic Income, paid as a right of citizenship. This is by far the best way to restore the balance of power between workers and employers, yet such an outcome is unlikely. Socialist egalitarian principles will leave them arguing that migrant workers should be given exactly the same rights as citizens - a completely impractical position in an international labour market. The irony is that by clinging to these principles, the left will continue to be kept out of power.
A very useful and insightful review!