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The Crisis Of Egalitarian Policy And The Promises Of Asset-Based Redistribution, Peter Skott

Peter Skott

This paper analyses the links between egalitarian policy and unemployment and the possible use of asset-based redistribution to overcome the crisis of egalitarian policy. Contrary to left- Keynesian belief, egalitarian policies in the postwar period were not the means to ensure high aggregate demand and full employment. The main direction of causation went the other way: full employment generated increasing egalitarian demands while high unemployment after the golden age paved the way for increasing inequality. The breakdown of the golden ages is itself explained by a gradual deterioration of the business climate which undermined the full employment policy. In addition, …