What Democracy Can’t Do
An Outside in stab at (tech-comm) NRx in a nutshell: If economically optimal labor pricing is ‘politically impossible’ you’re doing politics wrong.
(‘Wage-stickiness’ defenses of inflationary macro were the immediate context, but the application seems far broader.)
OK, some carbs (for anyone dissatisfied by raw gristle):
Europeans liked their welfare state regardless of where they stood on the political spectrum. The roots of “social democracy” lie on the left, but by the 1980s the preference for a mixed economy, generous health and pension benefits, and regulated markets had become, on the European continent at least, what Antonio Gramsci called a “hegemonic ideology.” These preferences were embraced by parties of the center-right as well as the center-left, compatible with capital yet acceptable to democratic majorities, and rejected principally by the extremes — and British Tories [sic]. The idea that this well-liked welfare state, deemed by many to be indispensable to social peace, might soon prove unviable in the globalized economy of the late twentieth century hence became a source of great anxiety.