Horizons of Social Democracy. Social investment or transcending capitalism?

In: The political quarterly, Band 93, Heft 1, S. 130-141

Abstract

AbstractThis article explores new horizons for social democracy, by initially identifying two sets of proposals currently being advanced in policy debates: the social investment welfare state and Thomas Piketty's 'transcending capitalism' blueprint. The article dismisses two possible interpretations of fundamental distinctions between them: (1) that they correspond, respectively, to redistributive and predistributive social policy styles; and (2) that they differ regarding their socially transformative daring. After establishing their common social democratic grounds, the article sets out the terms for a new conversation between them, with a view to assessing frontiers for social democratic ambition. The imagined conversation makes explicit their distinct emphases—one on labour strength (social investment); and the other on capital democratisation (transcending capitalism)—and reveals that these are because of contrasting assessments of problems and possibilities. It also makes clear that the integration of the two proposals is both possible and desirable, but suggests that an all‐encompassing social democratic agenda might offer possibilities beyond such an integration.