Keynes, Schumpeter and the state of the world

Here’s a couple of clips from a worth-reading site Post-Fordism and the State

What was

The Keynesian Welfare State

The dynamics of Fordism is closely related to the form and function of the Keynesian welfare state, which in turn has important implications for the dynamic of Fordism. In Fordism the state manages the wage relation and labour market policies and guides the aggregate demand, in this way it helps to balance the supply and demand. Moreover by holding out the promise of smoothing economic fluctuations and securing stable growth, the state also permitted Fordist firms to secure increasing returns to scale.

Second, the state invested in infrasructure and encouraged fordist mass consumption through housing and transport policies. Also the dominance of fordist mode of growth enabled the state to link the interests of organized capital and labour in a programme of full employment and social welfare. Many of the welfare policies in 1960s and 1970s were encouraged by the growth of Fordist system, with its commodification, urbanization and bureaucratism. Full employment is often considered to be the main goal of Keynesian welfare state, and both the Fordism and the post-war boom helped in achieving that.

and what we have now…

The Schumpeterian workfare state

Compared to Keynesian welfare state the Schumpeterian workfare state is ready to cut back the domestic full employment in favour of international competitiveness and the productivist reordering of social policy becomes before the redistributive welfare rights.

The current shifts in the world economy seem to require just such transformation of the state. Like in Keynesian welfare state there can be expected to be variations in Schumpeterian workfare state.

Keynes and Schumpeter were 20th century economists, btw.

Youtube pending…

 

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Below the surface...
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