Abstract
Since the Great Financial Crisis that erupted in 2008, both the US and the UK have experienced a new age of welfare austerity. This chapter explores what has happened by first tracing the conditions for the foundations of the Anglo-American welfare state, laid during the New Deal era in the US in the early 1930s and in Britain after 1945. It shows how the passing away of those conditions produced the atmosphere that led to important recent events in the Anglo-American world—notably the election of President Trump and the ‘Brexit’ vote. These events are commonly discussed in the language of populism. In many discussions of populism the ‘problem’ is assumed to lie in the attitudes and behaviour of ordinary citizens. This chapter argues that the problem lies not with these ordinary citizens but with the elites who have destroyed the postwar settlement and are now living with the consequences.
Much of the evidence reported in this chapter comes from Moran’s work with the Foundational Economy collective at Manchester: see https://foundationaleconomy and Foundational Economy Collective 2018. Following Michael Moran’s death in April 2018, this chapter was edited for publication by Joe Moran. Michael Moran thanked Peter Folkman, Julie Froud, Sukhdev Johal, Joe Moran, Winifred Moran and Karel Williams for comments on earlier drafts.
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Notes
- 1.
On the general problem see Gerring (1999).
- 2.
My wife grew up in the two decades after the end of the World War II in a mining family on the Lancashire coalfield. Her memories of the shadow welfare state show how central it was to family life. Some benefits were substantial: miners’ occupational pensions and compensation for death or injury through industrial accident above and beyond official provision. Some were significant ‘fringe benefits’: free coal for the households; a system of occupational succession that gave preference to the sons of miners (to go down the pit) and daughters to go into the offices or work in canteen. Some were important in humanising family contact with the world of work: subsidised beer in the Miners’ Welfare Club; Christmas parties and annual children’s outings to the seaside. In 1960 there were 600,000 miners in the UK; multiply by at least two to estimate the numbers covered by this bit of the shadow welfare state. And there is an added twist in the Lancashire example. My wife grew up in a household of Lithuanian migrants, in a mining community with Lithuanians, Poles, Ukrainians, Irish and a few Italians: the shadow welfare state thus contributed to migrant integration into citizenship. In the EU referendum the constituency which includes this community (St Helens) voted leave by 58/42.
- 3.
Calculated from Pensions Policy Institute (2016, 1).
- 4.
Churches and mosques are the backbone of the Foodbank Movement in the UK. Thus in a generation the shadow welfare state has gone from organising seaside outings for children to supplying food to families.
- 5.
Joseph Chamberlain, speech in Birmingham, 5 January 1885.
- 6.
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Moran, M. (2020). Populism and Social Citizenship: An Anglo-American Comparison. In: Crewe, I., Sanders, D. (eds) Authoritarian Populism and Liberal Democracy. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-17997-7_14
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