The two decades following the end of the late-nineteenth century economic depression were the first great age of globalization; the world economy was truly becoming integrated in just the ways Keynes suggested. For precisely this reason, the scale of the collapse during and after the First World War and the rate at which economies contracted between the wars is difficult for us to appreciate even now. Passports were introduced; the gold standard returned (in 1925 in the British case, reinstated by Chancellor of the Exchequer Winston Churchill over Keynes’s objections); currencies collapsed; trade declined.
British-American historian (1948–2010)
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Internationally condemned after Hitler’s fall for blindly obeying immoral orders, Germans thus turned the defect of their industrious obedience into a national virtue. The shattering impact of their country’s total defeat and subsequent occupation made West Germans amenable to the imposition of democracy in a way that few could have imagined a decade earlier. In place of the ‘devotion for its rulers’ that Heine had first observed in the German people a century before, Germans in the nineteen-fifties attracted international respect for their similarly wholehearted devotion to efficiency, detail, and quality in the manufacture of finished products.
The 1960s saw the apogee of the European state. The relation of the citizen to the state in Western Europe in the course of the previous century had been a shifting compromise between military needs and political claims: the modern rights of newly enfranchised citizens offset by older obligations to defend the realm. But since 1945 that relationship had come increasingly to be characterised by a dense tissue of social benefits and economic strategies in which it was the state that served its subjects, rather than the other way around.
The cultural competition of the early Cold War years was asymmetrical. Among European cultural elites there was still a widespread sentiment that they shared, across ideological divides and even bridging the Iron Curtain, a common culture to which America posed a threat. The French in particular took this line, echoing the early post-war efforts of their diplomats to trace an international policy independent of American control.
The longevity of Europe’s political parties derived from a remarkable continuity in the ecology of the electorate. The choice between Labour and Conservatives in Britain, or Social Democrats and Christian Democrats in West Germany, no longer reflected deep divisions over particular policies, much less profound ‘lifestyle’ preferences as they would come to be known. In most places it was an echo of longstanding, trans-generational voting habits, determined by the class, religion or locality of the voter rather than by the party’s program. Men and women voted as their parents had voted, depending on where they lived, where they worked and what they earned.
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Even in Scandinavia, where social democratic institutions were far more culturally ingrained, membership of the EU—or even just participation in the World Trade Organization and other international agencies—appeared to constrain locally-initiated legislation. In short, social democracy seemed doomed by that same internationalization which its early theorists had so enthusiastically adumbrated as the future of capitalism.
From this perspective, social democracy—like liberalism—was a byproduct of the rise of the European nation-state: a political idea keyed to the social challenges of industrialization in developed societies. Not only was there no ‘socialism’ in America, but social democracy as a working compromise between radical goals and liberal traditions lacked widespread support in any other continent. There was no shortage of enthusiasm for revolutionary socialism in much of the non-Western world, but the distinctively European compromise did not export well.
This paradox—that a peaceful European settlement was taking shape even as the two Great Powers of the day were arming themselves to the hilt and preparing for the eventuality of a thermonuclear war—was not so bizarre as it might appear. The growing emphasis in US and Soviet strategic thinking on nuclear weapons, and the intercontinental missiles with which to deliver them, released European states from the need to compete in an arena where they could not hope to match the resources of the superpowers, even though central Europe remained the most likely terrain over which any future war might be fought. For this reason, the Cold War in Western Europe was experienced quite differently in these years from the way it was felt in the United States, or indeed in the USSR.
Liberal intellectuals, then, whether of the continental persuasion like Aron or Luigi Einaudi, or in the British sense like Isaiah Berlin, were always distinctly more comfortable than most conservatives with the American connection that history had imposed upon them. The same was true, curious as it may seem, of Social Democrats. This was in part because the memory of FDR was still fresh, and many of the American diplomats and policy-makers with whom Europeans dealt in these years were New Dealers, who encouraged an active role for the state in economic and social policy and whose political sympathies fell to the left of center.
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What, then, is to be done? We have to begin with the state: as the incarnation of collective interests, collective purposes, and collective goods. If we cannot learn to “think the state” once again, we shall not get very far. But what precisely should the state do? Minimally, it should not duplicate unnecessarily: as Keynes wrote, “The important thing for Government is not to do things which individuals are doing already, and to do them a little better or a little worse; but to do those things which at present are not done at all.” And we know from the bitter experience of the past century that there are some things that states should most certainly not be doing.
Lenin’s distinctive contribution to European history had been to kidnap the centrifugal political heritage of European radicalism and channel it into power through an innovative system of monopolized control: unhesitatingly gathered and forcefully retained in one place. The Communist system might corrode indefinitely at the periphery; but the initiative for its final collapse could only come from the centre. In the story of Communism’s demise, the remarkable flowering in Prague or Warsaw of a new kind of opposition was only the end of the beginning. The emergence of a new kind of leadership in Moscow itself, however, was to be the beginning of the end.