Oliver Kamm on Tony Judt's latest book Ill Fares the Land: A Treatise on Our Present Discontents:
Judt claims too much from limited evidence. That would matter less if his account of the breakdown of social democracy and the rise of free-market economics were reliable. But it’s flawed. Throughout the book you struggle to gain an insight into why expansive welfare states and interventionist industrial policies fell out of favour in the 1980s. The nearest you get to an answer is the power of ideas — malign and acquisitive ones, in Judt’s depiction — and the rise of individualism. This is not wrong, and Judt is astute in noting parallels between the counterculture of the 1960s and the appeal of economic libertarianism. But it is question-begging. Why, in the late 1970s and early 1980s, did some ideas gain political traction and some fall out of favour? The reason is that social democracy appeared to have reached natural limits. Economic planning had turned into an unaccountable system of corporatism. Legal immunities had turned the trade unions into “insiders” against the interests of the public. The quadrupling of the oil price in 1973 by the Opec cartel and wage claims by powerful unions caused accelerating inflation. It is extraordinary that the word “inflation” appears only twice in Judt’s book, and each time in a specific technical context (the effect of inflation in pushing workers into higher tax brackets). The notion that the great inflation of the 1970s damaged working-class living standards and was a source of social discontent is absent from the book.
My only observation is that the biggest trouble with social democracy is that it has lost its meaning and that social democrats in order to circumvent this limitation have try to become all things to all people and more importantly by solely defining themselves against a Right that knows what it is and what it will never agree to be.
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