Monday, October 5, 2009

The Revival of the Right. - A funny thing happened ... to the collapse of market capitalism ... It didn't!

by Irwin Stelzer at The Wall Street Journal

A funny thing happened on the way to the collapse of market capitalism in the face of the worst economic crisis since the Great Depression. It didn't. Indeed, in Germany voters relieved Chancellor Angela Merkel of the necessity of cohabiting with a left-wing party, allowing her to form a coalition with a party favouring lower taxes and free markets. And in Pittsburgh leaders representing more than 90% of the world's GDP convened to figure out how to make markets work better, rather than to hoist the red flag. The workers are to be relieved, not of their chains, but of credit-card terms that are excessively onerous, and helped to retain their private property—their homes.

All of this is contrary to expectations. The communist spectre that Karl Marx confidently predicted would be haunting Europe is instead haunting Europe's left-wing parties, with even Vladimir Putin seeking to attract investment by re-privatising the firms he snatched. Which raises an interesting question: why haven't the economic turmoil and rising unemployment led workers to the barricades, instead of to their bankers to renegotiate their mortgages?

It might be because Spain's leftish government has proved less able to cope with economic collapse than countries with more centrist governments. Or because Britain, with a leftish government, is now the sick man of Europe, its financial sector in intensive care, its recovery likely to be the slowest in Europe, its prime credit rating threatened. Or it might be because left-wing trade unions, greedily demanding their public-sector members be exempted from the pain they want others to share, have lost their credibility and ability to lead a leftward lurch.

All of those factors contribute to the unexpected strength of the right in a world in which a record number of families are being tossed out of their homes, and jobs have been disappearing by the million.

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