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The left is winning the economic battle of ideas

There was a time when radical economic thought was born from political rights. Tired of the failure of government intervention in business, high inflation, trade unions that hinder modernization, and the welfare state that seems too comfortable for those who are not working, the Reagan and Thatcher governments in the 1980s were in the state. The boundary was demolished. They were copied to varying degrees by other developed nations, enjoyed popular support, and entrusted the left to a small “c” conservative who defended the old way.

As developed countries have begun to move out of the pandemic, it’s time to ask what lessons it offers on how to operate our economic system. Many have already decided. My inbox recommends exactly the same policies that pressure groups, business organizations, and politicians have always advocated, and moans that adding Covid-19 will increase the need for these changes. ..

But the notable exception is Research It was done by the Pew Research Center and tried to find out what the people were looking for in the economic system, rather than telling them what to get. Some findings are useless. It’s no wonder that the majority of the United States, Germany, France and the United Kingdom want others to pay for what they think will benefit them.

Even more interesting is the discovery that the majority of the four countries are dissatisfied with the economic system. In the United States, United Kingdom and Germany, half of the people asked said they needed a “significant change” or a “need for complete reform.” Its share has risen to 70% in France. Very few thought that the economic system did not need to be changed, with a maximum of 12% in the United States.

Dissatisfaction with the economic system was widespread among the political left and the poor. And after the unified threat of the coronavirus, there was a strong desire for a system with more equitable results. Even among the wealthier, there was support for higher government interests, more public housing, and higher taxes for the wealthier.But US hedge fund managers are very enthusiastic Birth Protesting the proposal that their compensation should be taxed as income rather than capital gains paid for more social security, President Joe Biden’s Policy It is in agreement with the opinions of the people.

In the aftermath of a pandemic, people value greater security, solidarity, and resilience in the face of shock. Left-wing economic militants are listening to the public. Or at least in three of the four countries Pew surveyed.

France is an interesting outlier. The people were most fascinated by the economic system, but had the least economic reforms, the most equal income distribution and the highest levels of public spending before the crisis. In France, everyone was unhappy. The poor and the left felt they couldn’t get a fair distribution of pies, while the rich and the right felt the economy wasn’t working for them.

There is an important lesson here. Precoronavirus capitalist models with high levels of inequality are losing general support, especially postcovids that favor more vulnerable and higher taxes, especially for extreme levels of income, wealth and profits It suggests the need for the world. However, there is still an important trade-off between fairness and efficiency. If you redistribute too much, no one will be satisfied.

I used the phrase “too far”, but I know it’s inaccurate and nearly meaningless. I don’t know the exact boundaries, but finding a way to meet the legitimate expectations of the public for a left shift in economic policy without compromising growth opportunities means that it will be a major economic experiment in the post-pandemic world. I will.

chris.giles@

The left is winning the economic battle of ideas

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