You’d think that the chaps at Britain’s lefty Guardian would love German Chancellor Schröder.
He’s as solid a Social Democrat as you could imagine. He’s defending the European “social model” from
the evil forces of Anglo-American globalization. He’s earned standing “O”s for his strident (and
convenient) anti-Americanism. So why is
Martin Kettle bailing out on the Unions-Kanzler?
Well, it’s because of a personal failure of leadership, whatever that means.
The SPD’s central failure has been its inability to provide a
coherent social-market-based
answer to the problems posed for the nation state by globalisation.
Well that’s a thought! The problem is, of course, that there is no coherent social-market-based answer
to the problems posed by globalization. The whole idea of the social market is to ignore the
market and promise big fixed benefits and pensions to your supporters when you don’t have a clue
whether you will ever be able to pay those benefits without bankrupting the nation.
Actually, the Social Democrats in Germany and elsewhere do have a coherent plan to solve
the problems posed by globalization. It is to retreat
as slowly as possible, pretending that they are delivering on their promises while slowly withdrawing
them, bit by bit.
But the laugh is on Kettle. Recent news indicates that the German economy is finally starting
to perk up after 15 years in the doldrums. Wage costs are down and exports are up. It’s all probably
due to Germany’s famous “Mittelstand,” the medium-sized business that dominate Germany’s exports.
If Angela Merkel wins the election and becomes Chancellor then
she will get the credit for the economic upswing that is already in progress.
Does Martin Kettle really want that?