| Abstract: | The economic objectives of recent governments of the Left werefull employment, reducing inequality, and enhancing economicperformance and democratic control by measures of planning andsocialization. The economic inheritance was difficult - stagnantinvestment, high unemployment in a number of cases, and inflationhigher than that of competitors. The generalized productivityslow-down, slow growth, and the drive to reduce inflation representedan unfavourable context. The supply-side interventions atrophied,were abandoned or reversed. Employment performance was pooroverall and sometime s disastrous. Some extensions of the welfarestate were achieved and major increases in inequality were avoided,but this record was hardly exceptional. Globalization is oftenblamed for such disappointments. Here, the emphasis is on theinherent difficulties of the social democratic project - containingdistributional conflict other than by unemployment, sustainingsupport for redistribution when living standards are stagnating,and constraining business while relying on it to maintain highinvestment. |
