Social Europe is a vibrant publisher of current progressive thought in Europe. Readers can find data, opinion, and policy analysis on the site, highly relevant to the core priorities of progressives across the continent and Britain — social opportunity, inequalities, work, the threat of right-wing populism, the refugee crisis, and the future of the European Union. Here is the Twitter feed for Social Europe (link).
SE also publishes a bi-annual journal called the Social Europe Journal. The most recent issue is focused on a recurring theme in Understanding Society, the menace posed by the rise of extreme-right populism. The volume is available as a digital book under the title, Understanding the Populist Revolt, edited by Henning Meyer.
Several chapters of Understanding the Populist Revolt are particularly interesting, including Bo Rothstein’s contribution, “Why has the white working class abandoned the left?”. Rothstein’s title poses a critical question, which Rothstein unpacks in these terms:
Maybe the most surprising political development during this decade is why increased inequality in almost all capitalist market societies has not resulted in more votes for left parties. Especially telling is the political success of Donald Trump and why such a large part of the American working class voted for him. In a country with staggering and increasing economic inequality, why would people who will undoubtedly lose economically from his policies support him? Why did his anti-government policies such as cutting taxes for the super-rich and slashing the newly established health care insurance system succeed to such a large extent? Moreover, why were these policies especially effective in securing votes from the white working class?
One answer may be in an issue often neglected by the left, namely how people perceive the quality of their government institutions. The idea behind this “quality of government” approach is that when people take a stand on what policies they are going to support, they do not only evaluate the policy as such. In addition, they also take into consideration the quality of the government institutions that are going to be responsible for its implementation.
Surveys show that the reason for Trump’s unexpected victory was his ability to get massive support from what has historically been a stronghold for the Democratic Party, namely low-educated white working class voters. However, as has recently been pointed out by, among others, Paul Krugman, this is a group likely to be the big losers from the policies Trump said he will launch. Many would say that race and immigration determined this election, but this can only be a part of the story because in many of the areas where Trump got most of the white working class votes there are few immigrants and no significant multi-ethnic population. (Kindle Locations 461-469)
This is indeed a key question for politicians and activists in the United States to consider. However, Rothstein’s answer is a fairly narrow one; he argues that a widespread belief about corruption and favoritism in Democratic elites is a primary factor leading to the disaffection of the white working class in the US. This seems to be only a secondary factor, however.
A more comprehensive attempt at an answer to the question, why is populism on the rise?, is suggested in the concluding chapter of the volume in an interview with Jurgen Habermas. Habermas calls out several factors in the past twenty-five years that have led to a rising appeal of right-wing populism among large segments of the populations of democratic countries in Europe and the United States. First among these factors is the steep and continuing increase in inequalities that neoliberal economies brought about since 1989. He believes that this trend could only be offset by an active state policy of social welfare — the policies of social democracy — and that advanced capitalist democracies have retreated from such policies.
Second, he highlights the deliberate politics and rhetoric of the right in both Europe and the United States in pursuing a politics of division and resentment. People suffer; and politicians aim their resentment at vulnerable others.
Third, Habermas emphasizes the fact that neoliberal globalization has not delivered on the promises made on its behalf in the 1970s, that globalization will improve everyone’s standard of living. In fact, he argues that globalization has led to stagnation of living standards in many countries and has led to an overall decline of the importance of the western capitalist economies within the global system overall. This trend in turn has given new energy to the nationalistic forces underlying right-wing populism.
So what advice does Habermas offer to the progressive parties in western democracies? He argues that the progressive left needs to confront the root of the problem — the increasing inequalities that exist both nationally and internationally. Moreover, he argues that this will require substantial international cooperation:
The question is why left-wing parties do not go on the offensive against social inequality by embarking upon a co-ordinated and cross-border taming of unregulated markets. As a sensible alternative – as much to the status quo of feral financial capitalism as to the agenda for a völkisch or left-nationalist retreat into the supposed sovereignty of long-since hollowed-out nation states – I would suggest there is only a supranational form of co-operation that pursues the goal of shaping a socially acceptable political reconfiguration of economic globalisation. (Kindle Locations 566-569)
In Habermas’s judgment, the fundamental impetus to right-wing populism was the cooptation of “social-democrat” parties like the Democratic Party in the United States and the Labour Party in Britain by the siren song of neoliberalism:
Since Clinton, Blair and Schröder social democrats have swung over to the prevailing neoliberal line in economic policies because that was or seemed to be promising in the political sense: in the “battle for the middle ground” these political parties thought they could win majorities only by adopting the neoliberal course of action. This meant taking on board toleration of long-standing and growing social inequalities. Meantime, this price – the economic and socio-cultural “hanging out to dry” of ever-greater parts of the populace – has clearly risen so high that the reaction to it has gone over to the right. (Kindle Locations 573-578)
So what is the path to broad support for the progressive left? It is to be progressive — to confront the root cause of the economic stagnation of the working class people whose lives are increasingly precarious and whose standard of living has not advanced materially in twenty-five years.
But this requires being willing to open up a completely different front in domestic politics and doing so by making the above-mentioned problem the key point at issue: How do we regain the political initiative vis-à-vis the destructive forces of unbridled capitalist globalisation? Instead, the political scene is predominantly grey on grey, where, for example, the left-wing pro-globalisation agenda of giving a political shape to a global society growing together economically and digitally can no longer be distinguished from the neoliberal agenda of political abdication to the blackmailing power of the banks and of the unregulated markets. (Kindle Locations 590-595)
So the distance between Rothstein and Habermas is substantial: Rothstein ultimately chalks up the Trump victory to a successful marketing campaign (“crooked Hillary”), whereas Habermas believes that very large forces within the neoliberal financial and trade regimes of the past twenty-five years have in fact worked to the disadvantage of the very people needed for achieving a majority for progressive politics.
I find it interesting that Habermas does not address the themes of radical nationalism, xenophobia, racism, and anti-Semitism that are raised by populist parties in many European countries and the United States. In his telling of the story, it is an issue of interests and structural advantages and disadvantages for various groups. By implication, the racism of the far right will subside if the US Democratic Party or progressive parties in France, Germany, or the Netherlands succeed in redefining the social contract in a way that is more favorable for the less advantaged citizens in their societies. Interestingly, this is exactly the argument constructed by Manuel Muñiz in his contribution to the volume, “Populism and the need for a new social contract.” Here are Muñiz’s central ideas:
The decoupling of productivity and wages is the explanation behind the structural stagnation of salaries of the middle class and the increase in inequality within our societies. Wealth is being concentrated in the hands of those that invest in and own the robots and algorithms while most of those living off labour wages are struggling. The McKinsey Global Institute recently reported that over 80% of US households had seen their income stagnate or decline in the period 2009-2016. (Kindle Locations 224-227)
The people most negatively affected by these trends are the abandoned of our time, the ignored, and are beginning to constitute a new political class. The embodiment of this new class is not just the unemployed but also the underemployed and the working poor – people who have seen economic opportunity escape from them over the last few decades. (Kindle Locations 230-232)
And here is a preliminary description of the new social contract he believes we will need:
The appearance and design of the new social contract that we need is only now starting to be discussed. What is clear, however, is that it will require a big change in the way the state procures its income, possibly through a reinvigorated industrial policy, large public venture capital investments and others. In essence, if wealth is concentrated in capital some form of democratisation of capital holding will be required. On the spending side, changes will also be required. This might adopt the form of negative income taxes, the establishment of a universal basic income, or the launch of public employment schemes. (Kindle Locations 246-250)
So there seems to be a degree of consensus among these contributors to Social Europe: the best strategy for fighting radical right-wing populism, and the tendencies towards racism and authoritarianism that it brings with it, is to re-establish the robust terms of social democracy that have the potential to offset the destructive structural dynamics of contemporary neoliberal capitalism. This means a more active state; more redistribution; more regulation of the financial industry and other sectors; and a more level playing field for all citizens in our democracies. And these are precisely the political values that Tea Party conservativism, Trumpism, and mainstream Republicans agree about; their rhetoric has demonized precisely these kinds of policies for decades. What would it take for the parties of the left to embrace the pro-working class policies described here? And is the underlying suspicion voiced by Rothstein above actually correct: that the Democratic Party is so beholden to large corporate interests that it is incapable of adopting these kinds of platforms?