Labour’s loss: Why macroeconomics matters
Electoral support for social democracy in Western Europe is in free fall. The implosion of social democracy is largely self- inflicted, because ‘Third Way’ social democracy alienated its traditional supporters by (a) a deliberate move to the non- reformist, status-quo oriented macroeconomics...
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| Format: | Article |
| Language: | English |
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Associazione Economia civile
2022-01-01
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| Series: | PSL Quarterly Review |
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| Online Access: | https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/17673 |
| _version_ | 1811172549991596032 |
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| author | Servaas Storm |
| author_facet | Servaas Storm |
| author_sort | Servaas Storm |
| collection | DOAJ |
| description |
Electoral support for social democracy in Western Europe is in free fall. The implosion of social democracy is largely self- inflicted, because ‘Third Way’ social democracy alienated its traditional supporters by (a) a deliberate move to the non- reformist, status-quo oriented macroeconomics of the New Keynesian consensus, which de-politicizes macro management and legitimises macro control by technocratic central banks; and (b) its promotion of a middle-class oriented ‘cultural liberalism’, as compensation for a lack of achievements on the economic front. As a result, Western European social democratic parties became responsible for austerity, rising inequality, social and economic disempowerment, and heightened insecurity—factors which contributed to a hardening of attitudes on cultural issues and migration. Social democracy has to return to its earlier reformist roots. The paper outlines what is needed in terms of fiscal and monetary policy as well as social concertation to create sufficient space for a reformist, productivist, and egalitarian strategy oriented toward full employment— based on a reimagined Keynesianism in which a prominent role is given to the economy’s supply side.
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| first_indexed | 2024-04-10T17:33:11Z |
| format | Article |
| id | doaj.art-1c28d3b63e5e4600a7f4da1722c515d3 |
| institution | Directory Open Access Journal |
| issn | 2037-3635 2037-3643 |
| language | English |
| last_indexed | 2024-04-10T17:33:11Z |
| publishDate | 2022-01-01 |
| publisher | Associazione Economia civile |
| record_format | Article |
| series | PSL Quarterly Review |
| spelling | doaj.art-1c28d3b63e5e4600a7f4da1722c515d32023-02-03T16:42:12ZengAssociazione Economia civilePSL Quarterly Review2037-36352037-36432022-01-017429910.13133/2037-3643/17673Labour’s loss: Why macroeconomics mattersServaas Storm Electoral support for social democracy in Western Europe is in free fall. The implosion of social democracy is largely self- inflicted, because ‘Third Way’ social democracy alienated its traditional supporters by (a) a deliberate move to the non- reformist, status-quo oriented macroeconomics of the New Keynesian consensus, which de-politicizes macro management and legitimises macro control by technocratic central banks; and (b) its promotion of a middle-class oriented ‘cultural liberalism’, as compensation for a lack of achievements on the economic front. As a result, Western European social democratic parties became responsible for austerity, rising inequality, social and economic disempowerment, and heightened insecurity—factors which contributed to a hardening of attitudes on cultural issues and migration. Social democracy has to return to its earlier reformist roots. The paper outlines what is needed in terms of fiscal and monetary policy as well as social concertation to create sufficient space for a reformist, productivist, and egalitarian strategy oriented toward full employment— based on a reimagined Keynesianism in which a prominent role is given to the economy’s supply side. https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/17673social democracyNew Keynesian macroeconomicsNAIRUKeynesianismfull employmentfiscal and monetary policy |
| spellingShingle | Servaas Storm Labour’s loss: Why macroeconomics matters PSL Quarterly Review social democracy New Keynesian macroeconomics NAIRU Keynesianism full employment fiscal and monetary policy |
| title | Labour’s loss: Why macroeconomics matters |
| title_full | Labour’s loss: Why macroeconomics matters |
| title_fullStr | Labour’s loss: Why macroeconomics matters |
| title_full_unstemmed | Labour’s loss: Why macroeconomics matters |
| title_short | Labour’s loss: Why macroeconomics matters |
| title_sort | labour s loss why macroeconomics matters |
| topic | social democracy New Keynesian macroeconomics NAIRU Keynesianism full employment fiscal and monetary policy |
| url | https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/17673 |
| work_keys_str_mv | AT servaasstorm labourslosswhymacroeconomicsmatters |