this post was submitted on 27 Sep 2025
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How is it going in the mental model of the 1950s?
The decade of unprecedented prosperity in America? When capitalism was going full blast, with the workers in unions to keep the owners in check? When the rich were heavily taxed? Sounds just fucking great to me.
Yeah... and hou sustainable did it turn out to be?
We dropped the unions and taxation of the rich. No reason that could not have continued. No reason we can't do it again.
That only works for so long, because the system isn't stable that way. Capitalism requires some sort of exploitation. If that exploitation is hindered for too long, capitalism will become in crisis.
This chapter explains why that deal didn't continue in Europe
Also: if you tax the rich too much, they will conduct a capital strike, where they stdpinvesting in the country, or move their business somewhere else. That bit isn't just a bogeyman from conservatives. It has some merit. Social democracy just isn't a stable system.