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Globalization is often seen as offering capital a means of escape from negotiating with organized labour. Mobility of capital and application of new technologies to production have redrawn the balance of power between capital and labour. Capitals power has been enhanced enormously. Massn unemployment, growing insecurity and increased inequality have weakened labours position. The state at the national level, from which labour might hope to gain a modicum of protection from market forces, is seen as losing power and capacity. Without idealizing the role of actually existing states in post-war capitalist societies, gains for labour could be and were made. The standard argument today is that even if states wished or tried to protect their populations from the pressures of global markets they would be unable to deliver. During the earlier period, an economy operating at full employment provided an unprecedented degree of material well-being for most working-class families and made possible the construction, in all Western countries, of a welfare state. Notwithstanding national variations, 1 the welfare state conferred social benefits on the populace to an unprecedented degree. Globalization, which is shorthand for market pressures and investor-power, demands that labour and social conditions be deregulated and left to the market to determine. Keynesian economic doctrines provided the ideological foundation of the full-employment welfare state. The economic foundation for national economic management was provided by the Fordist system of mass production (for mass consumption) which was based on national markets. These functioned in a gradually liberalizing international trading system underpinned by the Bretton Woods system of exchange rates management and international liquidity. The globalization era is -4-
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