Immergence of the Post War settlement
1945 – transition from classical democracies into welfare
democracies or welfare states.
Contradictions affiliated with the classical liberal state
o Restricted franchise – restricted according to regime
censitaire and principe capacitaire – largely restricting
to minorities (white, wealthy, property owning men)
o Labour laws – states that are largely being dominated
by electoral process (males educated in society)
Advancing groups interests in society.
o Minimal or non existent welfare systems (being
disenfranchised politically and economically) privilege a
few, disadvantage most.
o Motivated by trade protectionism, break down in
international trading system and demand, lead to
deterioration of industrial need which subsequently lead
to unemployment and stock market crash.
o Starting to question Adam Smith, invisible hand +
laissez fair economics.
World War II – in Europe
o Infrastructural damage
o High degrees of homelessness civilian centers
attacked in order to break the will of society.
o High rates of unemployment consequences of the
destruction. Increases when Europe is no longer at war
and millions of people who were deployed come back to
find their places no longer exist or a place to work.
o Refugee crisis displaced populations due to the war.
Require repatriation of people to go back to their
o Food crisis
o Financial crisis many states were completely spent,
consequence of war. Indebted to other states.
o Emerging or ongoing gender contradictions women
were fundamental to prosecuting campaigns. Put into
workforce. Become highly skilled – working at home
and in industrial sectors. Won’t be satisfied at a second
o Instrumental in pushing for a transition from classical
state to welfare state
o Soviet union presented an alternative model to the
classical liberal state. Workers were happy and productive. Dictatorship of proletariat. Mandate was to
advance interest of workers.
o Revolution with support of USSR.
Lasted from 1948-1973
1973 is pivotal to the demise of the welfare state onset of
oil crisis, precipitated by the Yom Kippur War. Lead to a
transition away from the welfare state to something that is
known as the neo-liberal state.
Contrived in Western Europe, USA, Canada, Australia, Japan,
Gave rise to the welfare state.
o Particular form of democratic state that seeks to resolve
all of the problems that happened before by making
democracy more politically and economically inclusive.
Based on the practice of corporatism/ corporatist tripartism.
Workers agree to support the corporation. These owners
concede to the right of workers to organize. Collective
bargaining – workers involved/negotiating with the
owners/representatives for the company of what their social
contract will be (benefits, wage etc.) For the first time, they
expect that the state will intervene to uphold collective
bargaining agreements between corporations and workers.
Remediate etc. State has a role to play in intervening.
o John Maynard Keynes – economist of interwar period –
critic of unregulated capitalism.
o Argued that the market economy was prone to crisis –
could not get out of crisis by virtue of own instruments.
o Advocate of state intervention – maintain overall health
of the capital economy and the stability of capitalist
political economy as a whole.
o Fiscal Policy – accelerate growth in economy through
targeted spending (state) in the economy for purposes
of creating jobs. Does two things: 1. gives people
disposable income to use in the market place to
stimulate demand and growth. 2. Puts money in
peoples pockets, as a state you can tax a percentage of
that income which you can subsequently recycle into
governmental programs. o Monetary policy – regulates the amount of money in
circulation – regulated through manipulation of interest
rates. If you happen to be moving into an inflation, you
increase interest rates.
o Debt – Government borrowing. Makes sense to go into
debt during a down economic cycle to engage in an
effective fiscal program. Avoid depressions.
Governments borrow to provide treasuries with the
money they need for fiscal initiatives. Once things
normalize, they can stop borrowing and start to engage
in normal processes and pay down debt before it
provides a drag on the economy. Debt accumulation in
down cycles, pay off debt in up cycles.
Fordism – A production practice that is said to be innovated
by Henry Ford. Post World War II era (1945). Largely focuses
on assembly line production. Incremental process from
rudimentary to roll off of assembly line process as finished
product. Assembly line production allows for products to be
made in extremely large units. Consumed not only by elites.
Higher wages year after year. Instrumental in the
maintenance of the welfare state and the social contract that
accrues because of that.
Full employment – due to demand.
o Two mechanisms for implementation by the US
Marshall Plan – Distribute millions of