EconPapers    
Economics at your fingertips  
 

The Market Turn: From Social Democracy to Market Liberalism

Avner Offer ()
Additional contact information
Avner Offer: All Souls College, University of Oxford

No _149, Oxford University Economic and Social History Series from Economics Group, Nuffield College, University of Oxford

Abstract: Social democracy and market liberalism offered different solutions to the same problem: how to provide for life-cycle dependency. Social democracy makes lateral transfers from producers to dependents by means of progressive taxation. Market liberalism uses financial markets to transfer financial entitlement over time. Social democracy came up against the limits of public expenditure in the 1970s. The ‘market turn’ from social democracy to market liberalism was enabled by easy credit in the 1980s. Much of this was absorbed into homeownership, which attracted majorities of households (and voters) in the developed world. Early movers did well, but easy credit eventually drove house prices beyond the reach of younger cohorts. Debt service diminished effective demand, which instigated financial instability. Both social democracy and market liberalism are in crisis.

New Economics Papers: this item is included in nep-his
Date: 2017-01-18
References: Add references at CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.economics.ox.ac.uk/materials/papers/14929/149decemberoffer.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:nuf:esohwp:_149

Access Statistics for this paper

More papers in Oxford University Economic and Social History Series from Economics Group, Nuffield College, University of Oxford Contact information at EDIRC.
Series data maintained by Maxine Collett ().

 
Page updated 2017-08-13
Handle: RePEc:nuf:esohwp:_149