By Morris R. Cohen
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Extra info for Studies in Philosophy and Science
Sample text
A further component in the model of the reconstructed state was the transformation in the nature and role of political parties in response to these impulses. They became the sensitive measure of a much larger public opinion than had been taken into account by the pre-war state—hence the sudden rise to prominence of the public opinion poll—and the conduit by which demands for concessions were transmitted to the parliamentary centre. It was they who had to undertake the necessary brokerage at the centre to keep the new consensus together.
1, 1951. The post-war nation-state 29 gave social insurance a much sounder actuarial basis. Social insurance systems, in their turn, provided governments with a larger financial reserve with which to pursue countercyclical economic policies aimed at maintaining high employment. This apparent coherence was largely coincidental, both in thought and action. The finer aspects of demand management, the use of fiscal policy and alterations in interest rates to stabilize demand and reduce economic fluctuations, have not always been judged a success.
Reactions to reflationary or deflationary adjustments of this kind in Britain, for instance, usually occurred after a longer time-lag than foreseen and could thus exaggerate rather than diminish cyclical fluctuations. And the pressure to concede welfare increases before impending general elections usually overrode more abstract principles of demand management. It is not only in the United Kingdom that almost every pre-election budget since 1950 has been more than normally inflationary. If governments were not successful in fine tuning the economy according to Keynesian prescriptions, the trend line of income growth was nevertheless higher and steeper because of the increase in size of the national budgets, whether balanced or not, because of the massive and stabilizing impact of the states’ other interventions, and because of the microeconomic activities of government in stimulating particular industries.