Social Democratic Regimes (Sweden)◦ Dominant Social Democratic parties◦ Centralized states◦ Corporatist interest groups◦ Universal, generous, service-intensive welfare states that

promote equality Conservative Regimes (U.S.)

◦ Weak, non-existent working class parties◦ Pluralist interest groups◦ Relatively small state sectors◦ Welfare programs with fewer programs, cover fewer

people, offer less generous benefits Christian Democratic Regimes (Germany)

◦ Religious and class divisions (competitive Social/Christian Democratic parties)

◦ Corporatist interest groups◦ High welfare spending along occupational lines, which

mitigates but reinforces inequalities

Background◦ Long history of Social Democratic Party (SAP) success;

high union membership rate◦ Working class well positioned to promote its interests

(Lipset and Marks: First in “Lower-class power” among advanced capitalist democracies)

Politics◦ SAP became the dominant, governing party

throughout 20th century by adopting reformist agenda (rather than socializing production, socialize its distribution) and forming broad coalitions (workers with farmers, middle class; and later left-wing parties, and greens)

◦ Party system undergoing change (marked by 2006 election; see Table 6.1, 154) Win by Conservative/Moderates put a right-bloc coalition

into power

Social Democratic Party success due to generous, universal, service-oriented welfare state (middle- and working-classes have stake in defending system)◦ State provision of health care, elder care, day care, cash benefits to sick, old,

unemployed◦ 50% of all Swedes derive income from state as client or public-sector employees◦ “lifelong middle class standard of living for all”

Budget crisis of 1990s (decline in growth, inflation, deficits) brought changes in welfare state◦ Trimming of benefits, increased fees, tightened eligibility, some privatization (in

pensions and schools); still generous, universal, and well-developed Welfare state inclusive, offers alternative to labor market; standard of

living determined not by job, position in labor market, but egalitarian impact of public services; displace market principles (health and child care) and replace market incomes (pensions, sick pay, unemployment)

Capitalist system (private ownership of means of production and the market rules)◦ Full employment (can lead to inflation)◦ Centralized wage bargaining (employers and unions negotiate agreements; holds

down wage costs, drives out weak firms; moves capital to efficient sectors; increases productivity and competitiveness with active labor market policies)

◦ Wage solidarity – “equal pay for all work” (small pay differentials)

Consensual democracy (Arend Lijphart, Patterns of Democracy) – inclusiveness, bargaining, compromise; broad participation, broad agreement◦ Power sharing governments (coalition governments)◦ Inclusive policy-making process (interest groups and non-governing

parties included)◦ Proportional representation (PR) electoral system

Parliamentary democracy ◦ Unicameral legislature, Riksdag (post-1971): 349 members; low voter-

member ratio (1/25,000); multimember districts (number of members determined by size of district; party list voting; 90% returned by district, remainder according to overall vote proportion)

◦ Strong committee system◦ Oversight (Ombudsman)◦ Head of state (ceremonial), King; head of government (real power, PM

and cabinet)◦ Remiss: process whereby interest groups comment on legislation◦ Judicial review restricted (only when in conflict with basic law)◦ Executive branch dominant in policy-making (inclusive, permeable,

tempered by judicial review)◦ Unitary system (although increasing decentralization in how local

governments deliver public services)

Background◦ Massive gap between power of business and labor◦ Most pronounced lower-class weakness of all advanced capitalist

democracies. Why? Success of American capitalism (seduction) Ethnic and racial tensions (division) Capitalist values of competition and individualism (distraction) Repression (intimidation)

Politics◦ 1930s New Deal coalition (urban immigrant workers, Southerners,

blacks) laid foundation for welfare state; union organizing, state regulation)

◦ Democratic Party majority, ruling, governing party (with brief periods of Republican control in Congress) from 1932-1994; welfare state, unions grew, workers’ living standards improved, inequality declined)

◦ New Deal unraveled in 1960s (Southern wing, Northern working-class left with civil rights; cultural issues; unemployment and inflation) Republican party turned right, moved south; eventually took Congress in

1994 Revival caused by South’s defection over civil rights; money from business

community wanting to roll-back government regulations; Christian right over moral issues; conservative white males threatened by dismantling of racial and gender hierarchies (Table 6.2, 164)

Democratic base=black, low-income, female, liberal, unmarried voters Republican base=white male, conservative, Southern, high-income voters

Class matters little in how people vote and a lot in who votes◦ Electorate skewed toward upper class (lower proportion of low-

income citizens than in any other countries)◦ Even greater class differences in more involved forms of

participation (contacting officials, contributing to campaigns, etc.)

◦ Wealthy more active and better organized Interest groups, lobbying, policy-makers are predominately upper-

class Politics dominated by upper class

Gap in participation and power reflected in policy◦ Extreme market capitalism

Businesses enjoy more autonomy (less interference from unions, small percentage of workers covered by collective bargaining agreements, and state, minimal state regulations) than any other rich democracy

◦ Small public sector; markets rule State collects less, spends less as proportion of GDP than other rich

democracies; citizens receive few public services Results of extreme market capitalism mixed

◦ Competitive, prosperous economy (growth, jobs, wealth)◦ Highly unequal: high levels of income/wealth inequality and

poverty

Highly fragmented Federal: power divided between national and state

governments Power divided horizontally between branches of

government, checks and balances◦ Founders believed in democracy, but wanted to avoid its egalitarian

consequences◦ System requires “passage” of legislation through three different

bodies (Executive, House, and Senate)◦ President - sets agenda, leadership

Combines head of government and state (real and symbolic power)◦ Congress

House – 435 members, returned through district elections, two-year terms; white, male, wealthy; high incumbency rates (>90%)

Senate – 100 members, returned by states, six-year terms; wealthier, even less diverse, representative; more competitive elections (around 75%)

Courts – federal judges with lifetime tenure; significant judicial review power

◦ Policy-making process marked by innumerable veto-points, places where policy can fail; fantastic system for maintaining the status quo; puts obstacles in way of disadvantaged who depend on public policy to offset their lack of power in the market

Background◦ Bismark: political unification in 1870s; rapid industrialization

(heavy industry through tariffs, colonialism, welfare state)◦ Defeat in WWI, Weimar Republic, first democracy

Lack of legitimacy, economic problems (war reparations, inflation, unemployment) led to rise of Hitler, eventual defeat in WWII

◦ Occupation produced German Democratic Republic (East Germany, Soviet-controlled) and Federal Republic of Germany (West Germany) GDR: one-party state dictatorship Reunification in 1990 (with end of Cold War)

West Germany◦ Post-WWII politics marked by class and religious cleavages

Christian Democratic Union (CDU) (broad support) Social Democratic Party (SPD) (industrial workers) Ongoing competition for governance between these parties in

coalition with others More recent rise of regional parties and greens See elections results (1998-2005, Table 6.3, 175)

Post-WWII revival under CDU remarkable◦ Steady growth, high wages, low inflation, generous welfare

benefits, low poverty; high-quality goods, competitive industries

State intent on letting markets rule, only “as much state intervention as necessary”

Social market economy◦ Markets allocate resources; state makes sure it does so in

socially responsible way Generous welfare state to ensure people’s needs met Work councils to ensure employees demands heard State promotes cooperation among economic actors

Broad guidelines, empower private groups (employers, unions, banks) to administer programs

◦ German Model faltered in 1980s Growth, jobs declined Consensus, patience, coordination, incremental change regarded

as source of poor performance Labor market increasingly divided between insiders and outsiders

“Semi-sovereign state” (Katzenstein)◦ System of checks and balances within, between state and society limit nationally elected

government to govern◦ Because power is so thoroughly divided, shared among institutions, national government

policy-making authority severely constrained Federal: power divided between central government and 16 federal states

◦ States responsible for education, administering federal laws; raise taxes, elect governments; select members to upper-house, which has veto power over bills affecting their jurisdictions

Significant authority given over to EU (trade, environment, border; monetary policy; ECJ judicial review)

Judicial Review: active Federal Constitutional Court Powerful, encompassing interest groups (especially labor and employer

associations) Bicameralism: parliamentary democracy with two chambers

◦ Upper-house representing states (based on population)◦ Lower house selects government; elected every four year; combined single-member

district (half of the total ) and party list voting (the other half) Voters pick candidate they want to represent them and apportion seats among the parties

President performs ceremonial functions, selects party leader to form government

Head of government is chancellor (majority in lower house)◦ Less powerful than other chief executives; appoint ministers (who tend to be

independent) and set policy guidelines Constraints on exercise of power by national government has created a stable

political and party system, fostered consensual decision-making, and incremental policy changes