I agree partly with Ian Buruma on this:
The way it looks now, liberals, in the “progressive” American sense of the word, may actually have been among the losers of 1989. Social democrats were always despised by communists, and vice versa. But many social democratic ideals, rooted in Marxist notions of social justice and equality, were thrown out, like the proverbial baby, with the bathwater of communism.
This process was already under way before the fall of the Berlin Wall, with the free-market radicalism of Margaret Thatcher and Ronald Reagan. Society doesn't exist, Mrs. Thatcher once famously declared – only individuals and families count. Everyone is for themselves.
For many people, this had the ring of liberation – from overregulated markets, from overbearing trade unions, from class privilege. That is why it was called neo-liberalism. But free-market radicalism undermined the role of the state in building a better, more just, more equal society. Neo-liberals are less interested in justice than in greater efficiency, more productivity, the bottom line.
While the neo-liberals were slashing and burning their way through old social democratic arrangements, the left was dissipating its energies on cultural politics, “identity” and ideological multiculturalism. Democratic idealism was once the domain of the left, including social democrats and liberals. In the United States, it had been the Democratic Party, embodied by John Kennedy, that promoted freedom around the world.
But in the late 20th century, it became more important to many leftists to save “Third World” culture, no matter how barbaric, from “neo-colonialism” than it was to support equality and democracy. People on the left would defend brutal dictators (Mao, Fidel Castro, Pol Pot, Ruhollah Khomaini) simply because they opposed “Western imperialism.”
As a result, all politics derived from Marxism, no matter how loosely, lost credibility and finally died in 1989. This was, naturally, a disaster for communists and socialists – but also for social democrats, for they had lost an ideological basis for their idealism. And without idealism, politics becomes a form of accounting, a management of purely material interests.
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