Is the diagnosis of the demise of Social Democracy that a) for reasons unknow (!) growth slowed down after 19xx. b) This was misdiagnosed as too much (rather than the wrong kind of) state interference with the market, including tax and redistribution to the unworthy.* c) This led after 1980(?) to the wrong kind (rather than less) interference with the market, specifically lower tax collections from high income earners and higher structural deficits. d) Ongoing changes in transportation and communication technologies plus economic reforms in some developing countries, especially China, (and a smidgen of reduction in trade restrictions), led to a Stolper-Samuelson decline in the relative incomes of lower skilled manufacturing labor which had previously been the main political support of Social Democracy**?
*Hayek gleefully rubs hands together saying “I told you so.”
** Polanyi mournfully wrings hands saying “I told you so.”
Is the diagnosis of the demise of Social Democracy that a) for reasons unknow (!) growth slowed down after 19xx. b) This was misdiagnosed as too much (rather than the wrong kind of) state interference with the market, including tax and redistribution to the unworthy.* c) This led after 1980(?) to the wrong kind (rather than less) interference with the market, specifically lower tax collections from high income earners and higher structural deficits. d) Ongoing changes in transportation and communication technologies plus economic reforms in some developing countries, especially China, (and a smidgen of reduction in trade restrictions), led to a Stolper-Samuelson decline in the relative incomes of lower skilled manufacturing labor which had previously been the main political support of Social Democracy**?
*Hayek gleefully rubs hands together saying “I told you so.”
** Polanyi mournfully wrings hands saying “I told you so.”