The end of social democracy

The combined effect of the financial crisis and the austerity policies that are now being followed in the West is likely to lead to the demise of the social-democratic welfare state. The historic pact between capital and labour in those countries, which had led to a huge improvement in living standards for the masses, is in danger of unravelling. Globalization had already put the welfare state under severe strain as companies shifted production to developing countries where wages and costs were much cheaper. 

Read Full Story>>