Partisan Politics in the Global EconomyGeoffrey Garrett challenges the conventional wisdom about the domestic effects of the globalization of markets in the industrial democracies: the erosion of national autonomy and the demise of leftist alternatives to the free market. He demonstrates that globalization has strengthened the relationship between the political power of the left and organized labour and economic policies that reduce market-generated inequalities of risk and wealth. Moreover, macroeconomic outcomes in the era of global markets have been as good or better in strong left-labour regimes ('social democratic corporatism') as in other industrial countries. Pessimistic visions of the inexorable dominance of capital over labour or radical autarkic and nationalist backlashes against markets are significantly overstated. Electoral politics have not been dwarfed by market dynamics as social forces. Globalized markets have not rendered immutable the efficiency-equality trade-off. |
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argue argument Austria Average balance of political Belgium cabinet governments Canada capital flows capital mobility Chapter closed economy coefficients correlation counterfactual estimates country dummy variables cross-national democratic corporatist regimes Denmark domestic political economic performance economic policies effects of globalization encompassing labor market equations exchange rate exposure to trade Figure Finland fixed exchange rate France Germany global economy global markets government spending higher impact incoherent increased industrial democracies inflation interaction interest rates Italy Japan labor market institutions labor movements labor power leaders of encompassing left and organized left parties left power left-labor power index left-wing macroeconomic macroeconomic performance macroeconomic policy market integration market liberalism mobile asset holders Netherlands Nonetheless Norway OECD organized labor parameter estimates partisan politics period political economy political power power and labor regime coherence regression significant social democratic corporatism social democratic corporatist Sweden Table tax revenues trade and capital trade unions United Kingdom welfare