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Political responsiveness is highly unequal along class lines, which has triggered a lively debate about potential causes of this political inequality. What has remained largely unexplored in this debate are the structural economic conditions under which policymakers operate. In this contribution, we hypothesize that budgetary pressures affect both the level and the equality of political responsiveness. Using a dataset containing public opinion data on around 450 fiscal policy proposals in Germany between 1980 and 2016, we investigate whether policymakers are more responsive on issues with budgetary consequences under conditions of low fiscal pressure than under conditions of high fiscal pressure. We find that responsiveness indeed varies systematically with the degree of fiscal pressure and that policymakers are less responsive on fiscal issues when fiscal pressure is high. This holds for both left‐wing and right‐wing governments. In contrast, we do not find strong effects of fiscal pressure on political inequality: responsiveness is not more equal in fiscally more permissive times. However, since different types of policy proposals are adopted in times of high fiscal stress, unequal responsiveness has different policy implications in times of high and low fiscal pressure.
Ever since the Great Recession, public debt has become politicised. Some research suggests that citizens are fiscally conservative, while other research shows that they punish governments for implementing fiscal consolidation. This begs the question of whether and how much citizens care about debt. We argue that debt is not a priority for citizens because reducing it involves spending and tax trade-offs. Using a split-sample experiment and a conjoint experiment in four European countries, we show that fiscal consolidation at the cost of spending cuts or taxes hikes is less popular than commonly assumed. Revenue-based consolidation is especially unpopular, but expenditure-based consolidation is also contested. Moreover, the public has clear fiscal policy priorities: People do not favour lower debt and taxes, but they support higher progressive taxes to pay for more government spending. The article furthers our understanding of public opinion on fiscal policies and the likely political consequences of austerity.
This article analyses the margin of manoeuvre of Portuguese executives after the onset of the sovereign debt crisis in 2010–2015. To obtain a full understanding of what happened behind the closed doors of international meetings, different types of data are triangulated: face‐to‐face interviews; investigations by journalists; and International Monetary Fund and European Union official documents. The findings are compared to the public discourse of Prime Ministers José Sócrates and Pedro Passos‐Coelho. It is shown that while the sovereign debt crisis and the bail‐out limited the executive's autonomy, they also made them stronger in relation to other domestic actors. The perceived need for ‘credibility’ in order to avoid a ‘negative’ reaction from the markets – later associated with the conditions of the bail‐out – concurrently gave the executives a legitimate justification to concentrate power in their hands and a strong argument to counter the opponents of their proposed reforms. Consequently, when Portuguese ministers favoured policies that were in congruence with those supported by international actors, they were able to use the crisis to advance their own agenda. Disagreement with Troika representatives implied the start of a negotiation process between the ministers and international lenders, the final outcome of which depended on the actors’ bargaining powers. These strategies, it is argued, constitute a tactic of depoliticisation in which both the material constraints and the discourse used to frame them are employed to construct imperatives around a narrow selection of policy alternatives.
During the European debt crisis, numerous states launched austerity programmes. The International Monetary Fund (IMF) evaluates and forecasts the likelihood of member states’ success in implementing these programmes. Although IMF evaluations influence country risk perceptions on capital markets, little is known about their reasoning. This article uses fuzzy‐set qualitative comparative analysis (fsQCA) to explore on what grounds the IMF evaluated the success prospects of austerity programmes during the European debt crisis. Results reveal that IMF evaluations are heavily influenced by the programme's implementation credibility. They require a tractable policy problem, a country's institutional capacity to structure implementation, and favour expenditure reduction over revenue measures. By acting as a strict guide on the road to fiscal adjustment, the IMF indirectly influences member states’ scope of policy making through its surveillance activities. Extensive austerity programmes that need to be implemented swiftly are evaluated negatively if the country is not involved in an IMF programme.
Does austerity influence incumbent support? Existing studies struggle with conceptualizing the evolution of austerity's impact over time, estimating a causal effect, and analysing the reactions of different voters. This study theorizes that the effect of austerity on electoral preferences is not immediate, but gradual, as voters find out about the measures' consequences via the media. It leverages a survey in the field at the time of the austerity announcement in Romania in 2010, additional survey data collected immediately after this event and comprehensive daily media coverage to show that austerity measures do not have an immediate impact on incumbent support, anticipated turnout and expressing a vote preference. Instead, there is a gradual effect that is associated with increased media attention to budgetary cuts. This natural experiment allows the estimation of the immediate causal effect of austerity on electoral intentions. Difference‐in‐differences (DID) models show that the announcement triggered a massive loss of support for the incumbent among those who had voted for the party in power only a few months before. Austerity also led to the demobilization of the governing party's supporters. There is no evidence that those most directly affected by the spending cuts are more likely to punish the incumbent party.
This paper studies the interactions between governments, challengers and third party actors in the context of 60 contentious policy episodes in 12 European countries during the Great Recession. More specifically, we focus on the endogenous dynamics that develop in the course of these episodes. Based on the combination of a new event dataset, which allows for the construction of action sequences, and a novel method (contentious episode analysis) to study the impact of actor‐specific actions on subsequent actions within a sequence, we test a set of hypotheses on the determinants of actors’ overall action repertoires within specific contexts. Overall, our results are more supportive of the interdependence of cooperation than of the interdependence of conflict: the repression‐radical mobilisation‐external legitimation of conflictive behaviour nexus is weaker than the concession‐cooperation‐mediation nexus. While the literature tends to focus on conflict dynamics, we find that there is a more systematic dynamics of cooperation in the course of contentious episodes.
The European debt crisis has uncovered serious tension between democratic politics and market pressure in contemporary democracies. This tension arises when governments implement unpopular fiscal consolidation packages in order to raise their macroeconomic credibility among financial investors. Nonetheless, the dominant view in current research is that governments should not find it difficult to balance demands from voters and investors because the economic and political costs of fiscal consolidations are low. This would leave governments with sufficient room to promote fiscal consolidation according to their ideological agenda. This article re‐examines this proposition by studying how the risk of governments to be replaced in office affects the probability and timing of fiscal consolidation policies. The results show that governments associate significant electoral risk with consolidations because electorally vulnerable governments strategically avoid consolidations towards the end of the legislative term in order to minimise electoral punishment. Specifically, the predicted probability of consolidation decreases from 40 per cent after an election to 13 per cent towards the end of the term when the government's margin of victory is small. When the electoral margin is large, the probability of consolidation is roughly stable at around 35 per cent. Electoral concerns are the most important political determinant of consolidations, leaving only a minor role for ideological concerns. Governments, hence, find it more difficult to reconcile political and economic pressures on fiscal policy than previous, influential research implies. The results suggest that existing studies under‐estimate the electoral risk associated with consolidations because they ignore the strategic behaviour that is established in this analysis.
The article analyzes how civil society is constructed in two Danish civil society strategies from 2010 to 2017, the governmental programmes of the governments in question and the role civil society plays in the proposed upcoming reform of the Danish public sector, the Cohesion Reform. The article approaches civil society from a Foucauldian perspective meaning that it on the one hand analyzes civil society as a transactional reality, something which does not exist as such, but must be continually produced as a given thing with certain values. On the other hand, it means analyzing civil society as a central part of a governmental rationality, or governmentality, which represents the natural movements of society and which government must respect and govern according to. This means that the natural, vital and originary processes of civil society becomes a measurement for good and right government in contradistinction to the artificial, cold and bureaucratic state and thereby posited as the rescuer of welfare society.
This short article discusses how the COVID-19 crisis has affected solidarity. It starts by defining solidarity in such a way that it can be distinguished from other types of support and pro-social practice, and by arguing that solidarity can manifest itself at three different levels: at the inter-personal level, the group level, or at the level of legal and contractual norms. Drawing upon findings from two ongoing studies on personal and societal effects of the COVID-19 crisis, I then go on to argue that, while forms of inter-personal solidarity have been shifting even during the first weeks and months of the crisis, the importance of institutionalized solidarity is becoming increasingly apparent. The most resilient societies in times of COVID-19 have not been those with the best medical technology or the strictest pandemic containment measures, but those with good public infrastructures and other solidaristic institutions.
During the crisis, the European Union's ‘social deficit’ has triggered an increasing politicisation of redistributive issues within supranational, transnational and national arenas. Various lines of conflict have taken shape, revolving around who questions (who are ‘we’? – i.e., issues of identity and inclusion/exclusion); what questions (how much redistribution within and across the ‘we’ collectivities) and who decides questions (the locus of authority that can produce and guarantee organised solidarity). The key challenge facing today's political leaders is how to ‘glue’ the Union together as a recogniseable and functioning polity. This requires a double rebalancing: between the logic of ‘opening’ and the logic of ‘closure’, on the one hand, and between the logic of ‘economic stability’ and ‘social solidarity’, on the other. Building on the work of Stein Rokkan and Max Weber, this article argues that reconciliation is possible, but only if carefully crafted through an extraordinary mobilisation of political and intellectual resources. A key ingredient should be the establishment of a European Social Union, capable of combining domestic and pan‐European solidarities. In this way, the EU could visibly and tangibly extend its policy menu from regulation to (limited, but effective) distribution, reaping the latter's benefits in terms of legitimacy. The journey on this road is difficult but, pace Rokkan, not entirely impervious.
Since the 2008 economic crisis, social service providers worldwide have reported funding cuts, while the need for some social services has been increasing. This paper examines the combined and longer-term effects of such divergent developments on the nonprofit social services sector. The empirical analysis uses Austrian administrative data on six subfields of the sector covering the years 2003–2017. We investigate significant changes in the trends of four growth indicators applying interrupted time series analysis. We find that the 2008 economic crisis is associated with persistently lower growth rates in Austria’s nonprofit social services sector. The magnitude of this dampening effect differs across subsectors. Additionally, our findings suggest an increase in market concentration. Hence, the study discloses a long-term scarring effect of the economic crisis on Austria’s social services sector, raising doubts on the sector’s future resilience.
Previous research shows that welfare cuts often cause distress amongst frontline workers. From the perspective of organisations implementing cuts, distressed caseworkers may hinder cost reductions and delay implementation. However, previous research has not analysed whether public agencies seek to reduce the moral distress experienced by their employees. This article examines the reorganisation of casework at the Swedish Social Insurance Agency (SSIA) between 2015 and 2020, after the introduction of a government target to reduce costs. The overarching argument is that the logic behind many organisational changes during this period was to relieve staff of any remorse for those who lost financial support. This was achieved by distancing SSIA staff from claimants, blurring caseworkers’ responsibilities and promoting an internal culture that presented stricter assessments as a democratic duty. This analysis suggests that research on social policy cuts should pay more attention to how public agencies manage the emotional lives of their employees.
This article examines how the labor and community structures of female skin-divers, the Japanese ama and Korean haenyeo, believed to exemplify the primitive ability to adapt to extreme climates, became staple research subjects for global adaptation-resilience science. In the context of development studies, adaptation-resilience discourse has been seen as reflecting the emergence of neoliberal governmentality. In contrast, this article frames adaptation-resilience as a reactionary technological response that emerges in times of scarcity and crisis. This article demonstrates how the discourse can be traced back to interwar Japanese physiologists, who saw themselves as rescuing Japan from the ills of modernity through a socio-biological development program that drew on the diver’s adaptability as a means to create subjects not only capable of surviving extreme deprivation but willing to do so in the service of the community and the state. These scientists and their research were taken up uncritically in the postwar by international science and development organizations, who found in them a shared vision of a labor-intensive and low ecological impact model of community-rooted development that offered a sustainable and healthier alternative to capitalism, one that could help humanity overcome crises of modern excess such as climate change. However, sustainability meant the valorization of absolute austerity as a development goal, ruling out relief for suffering marginalized populations. This article therefore suggests that resiliency-based development entraps its subjects in a regime of self-exploitation that forces them into a constant state of emergency, paradoxically deepening their vulnerability in the process.
Chapter 5 shows that German housing programs reached a turning point in the mid-1970s. Initially, these programs reinforced the postwar export-oriented growth regime by alleviating housing shortages and creating low-cost housing that limited wage demands and inflation. However, as housing shortages abated, policymakers started criticizing them for contradicting the growth regime by increasing public debt, diverting capital from manufacturing, and fueling inflation. Unlike American policymakers who expanded housing support in response to post-Keynesian challenges, German policymakers began scaling down housing programs. By the late 1980s, they had gradually reduced large-scale rental housing programs. At the same time, they protected homeownership support, including through Chancellor Helmut Kohl's 1986 tax reform, not as a growth strategy but as policies for family support, wealth creation, and old-age security. However, key actors in the German growth regime critiqued homeownership programs for limiting labor mobility, inflating prices, and shifting capital away from manufacturing. For the time being, German politicians prioritized political factors and ignored macroeconomic critiques.
This chapter sees Edgar in peak career, a seasoned director and company secretary, but with continuing financial anxieties and resentments against his employer as he approached retirement. His last two years in Baghdad, in company with Winifred, illustrate the close relationship of the British imperial administration with Middle East shipping companies, and Edgar’s role in both. Winifred fostered the development of the Baghdad Anglican church, mainly for expatriates, and missionary activity, extending her St Albans church work. For Edgar, as for Winifred, their subsequent decade in the 1930s in St Albans before retirement offers a case study in expatriate transition to life at ‘home’, to domesticity and engagement in public life and local society, along with lingering Persian associations and nostalgia for their expatriate past. While expatriate service succeeded in cementing their class transformation, they remained vulnerable to middle-class economic austerity which characterised peacetime 1930s and wartime 1940s. The Wilsons’ longed-for stable settlement in England contrasted with the adoption of expatriate careers by all their children, with daughters as overseas missionaries and sons as overseas mining engineers, a tension between the continuation and rejection of expatriate mobility concluded in the next chapter.
Ageing populations and slower growth have compelled governments in mature welfare states to implement fiscal adjustments, but uncertainty persists about whether these measures have successfully curtailed the size of the welfare state. This letter documents that fiscal adjustments reduce social spending more effectively than previously thought. Using data from sixteen advanced economies between 1978 and 2018 and the narrative identification of adjustment plans, I estimate cumulative multipliers with local projections. I find that fiscal adjustments persistently lower social spending, including key components of social consumption and social investment. To explain why austerity does not shelter the welfare state, I present stylized facts about the timing and composition of adjustment plans. First, while public investment cuts concentrate at the beginning of the adjustment period, social consumption cuts accumulate over time. Second, large budget deficits and financial crises are frequent antecedents of the most ambitious fiscal reforms.
This chapter investigates the policy’s ideational foundations by perusing economic theories and determining which would recommend its provisions. According to some scholars, austerity theories, based on Ricardian equivalence, rational expectations, and perfect capital markets, have inspired its design. For other scholars, these rules reflect neoliberal ideas in support of small government and rejection of Keynesian demand management. The chapter argues that these claims are unconvincing. Austerity theories suggest a diminished effectiveness of expansionary fiscal policies and would recommend looser oversight. Since 2005, policy provisions have accommodated business cycle fluctuations, major structural reforms, and public investments. There are no provisions about the size of governments. The chapter shows that these rules are designed to prevent negative cross-country externalities arising from expansionary fiscal policies adopted by authorities with short-term incentives to boost output at the expense of inflation. This reasoning is based on standard macroeconomic theories and the more realistic assumptions of fiscally illuded voters and policy- and office-seeking politicians.
Imagine a world in which clothing wasn't superabundant – cheap, disposable, indestructible – but perishable, threadbare and chronically scarce. Eighty years ago, when World War II ended, a textile famine loomed. What would everyone wear as uniforms were discarded and soldiers returned home, Nazi camps were liberated, and millions of uprooted people struggled to subsist? In this richly textured history, Carruthers unpicks a familiar wartime motto, 'Make Do and Mend', to reveal how central fabric was to postwar Britain. Clothes and footwear supplied a currency with which some were rewarded, while others went without. Making Do moves from Britain's demob centres to liberated Belsen – from razed German cities to refugee camps and troopships – to uncover intimate ties between Britons and others bound together in new patterns of mutual need. Filled with original research and personal stories, Making Do illuminates how lives were refashioned after the most devastating war in human history.
Washington’s abrupt cancellation of Lend-Lease after World War II accentuated Britain’s chronic indebtedness to the United States. Redressing Britain’s balance of payments deficit required the orientation of much domestic production for export. Textiles lay at the heart of this export drive. But workers in the cotton and woollen industries, as in the garment sector, were lacking. This chapter analyses the campaign to encourage women to enter the mills of Lancashire and Yorkshire, exploring why women resisted official entreaties. With tens of thousands of Britons emigrating annually, the government turned to displaced persons (DPs) in occupied Germany and Austria. In 1947, the Ministry of Labour launched ‘Operation Westward Ho’ to recruit DPs as so-called ‘European Volunteer Workers’. The majority of female recruits were channelled into textile work. The chapter concludes by exploring the tensions surrounding these female migrants, including a perception that they received too many perks and anxieties over women’s reproductive agency. Unmarried pregnant ‘volunteers’ risked deportation if they sought terminations, or invasive attempts to compel them to marry.
The history of postwar clothing can be understood only with prior reference to wartime conditions. The reorientation of civilian industries (including textiles and garment manufacture) towards military production, severance of prewar shipping routes and supply lines and redirection of millions of workers into uniform all contributed to a chronic shortage of garments and footwear available for civilian purchase. Civilian scarcity existed alongside, and largely because of, a surfeit of military apparel. Clothes rationing and campaigns to ‘make do and mend’ were introduced both in Britain and in Nazi Germany. Wartime planners in Britain and the newly formed United Nations Relief and Rehabilitation Administration (UNRRA), set up in 1943, anticipated that the end of hostilities would leave millions of people in areas hitherto occupied by Axis forces in dire need of fundamental human necessities. Along with shelter, food and medicine, humanity in extremis would need clothing and footwear. ‘Postwar’ efforts to recirculate secondhand garments, manufacture civilian apparel and repurpose military surplus all began before fighting ceased, forcing us to rethink conventional periodization of when, and how definitively, World War II ended. Victory’s texture was extremely uneven.