Wednesday, January 4, 2012

The Logic of Welfarism

The thought as I walked to work this morning:

From a Left perspective, the Welfare State was part of a larger crisis-driven accommodation  (including collective bargaining , wage regulation, and support for business) designed the 'manage' Capitalism in a way that bought off sufficiently large section of the working class. It was a price Capitalism, in days when it was primarily domestic Capitalism, was forced to pay to ensure worker quiescence.

In a globalised world, in which global value chains allow nearly optimum incorporation of high-price labour (R&D, design, management etc) in some locations with cheap manufacturing labour in others, the 1930s Welfare State no longer serves its original purpose. States like NZ now attempt a challenging balancing act - reduction of welfare provision to the point that social cohesion is (just) sustained, and returns to Capital are maintained. All notions of power-sharing and respect inherent in the Social Democratic model of the Welfare State are abandoned. The balancing act has an ideology- neo liberalism. The Social Democratic parties of the Welfare State (Savage-like Labour Parties) become anachronistic, and seek to redefine themselves as useful within the new reality.

Is this Mr Shearer's new broom, I wonder?

5 comments:

  1. Crikey, Robert. You need to start walking WITHOUT a thesaurus in your hand - you'll find you speed up by an average of 1 - 2 kms per hour!

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  2. @XChequer: it scans at about 5km an hour.

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  3. Having just published a comment on the POAL thread, this might be the right forum to say that while I don't want to be in a union, I would certainly prefer for unions to exist to maintain checks and balances against unbridled corporate greed.

    I agree with your post, however. It does feel like the scales are tipping to far one way.

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