Political choice and the multiple ?logics? of capital

Abstract

The issue of whether one sees the constraints on domestic freedom of action as economic or political has important practical consequences. If one accepts the position that reforms such as the expansion of social welfare actually interfere with the fundamental logic of a capitalist order, it becomes very difficult to defend those reforms from conservative attack. One can argue that over the long term the only way to protect those reforms is through a break with the capitalist system, but this does not provide much strategic guidance in the short term. On the contrary, since the left is agreeing that these reforms contribute to the problems of the economy - inflation, slow growth, unemployment - it follows that the citizenry is acting rationally when it supports the right-wing attacks on the reforms. In a context in which the immediate transition to socialism is not possible, it follows that the best way to enhance the collective welfare is by trading off the reforms for the promise of faster economic growth.