Tuesday, August 22, 2017

again: what is the welfare state?

the welfare state is an attempt by capital to mitigate the effects of unemployment, as they existed in the depression, and thereby strengthen the control of capital. the welfare state is a required condition when capitalism enters periods of crisis and unemployed workers are threatening unrest, general strikes and potentially a revolution.

historically, the welfare state has come about in a coalition between conservatives and socialists, and tended to be rejected by liberals, with their theory of markets, who argue that capitalism is only failing due to the corruption of the state in the first place, and unrest is best quelled by letting the markets freely produce jobs. conservatives (including the conservatives in the democratic party) have historically sided with socialists in rejecting these arguments, and instead opted to build welfare states to placate the starving masses into putting down their pitchforks. these welfare states include those built by bismarck, roosevelt and churchill. canada is actually the strange one, in that our welfare state was actually built by the liberal party (under mackenzie) - but in emulation to those built by the conservatives in england (under labour agitation, and rejected by liberals) and by the democrats in the united states (who were broadly the conservative party until the new deal, and didn't really exist on the left of the republicans until the republicans moved to their right with the southern strategy).

a smart and non-ideological president would be reacting to the unrest on the ground by expanding the welfare state first, and taking steps to create jobs second. that's what churchill would have done as much as it is what roosevelt would have done - not because it is socialist, but because it is realist in it's rejection of market utopianism.

capital has a choice in adjusting to it's own greed: placate (and reform) or repress. repression is dangerous, because it could lead to revolt. the smart thing to do is placate and reform. and, historically, plenty of conservatives have realized that.