Persons above a certain age, probably over 45, would remember quite distinctly the ideological divide that characterised our world. There were two superpowers that sought to extend political influence to all corners of the earth.
However, they also represented a different economic system. The US represented the capitalist system and the free market economy, while what was formerly called the Soviet Union represented the communist system and the command economy.
There were a number of countries (most notably in Western Europe), which although being very close to the US from a political perspective, chose a different route to managing their economies. This led to the concept of the mixed economy. In some cases, the role of the state in the economy was quite strong, while in other cases, the role of the state was less so.
In any case, this was called the middle ground, with policies that favour a smaller role for the state being called centre right and positions that favour a stronger role of the state being centre left.
With the fall of what was known as the Berlin Wall, that led to the disintegration of the Soviet system – and what many saw as the defeat of the communist system and the supremacy of the capitalist system – centre-right and centre-left positions became blurred and the ideological distinction got lost.
What were traditional left-wing parties felt the need to occupy the middle ground and centre-right parties did all they could to hang on to the middle ground they appeared to have occupied.
One good example was the British Labour Party, at the time when Tony Blair was prime minister. There were some who described him as Thatcherite for having adopted economic policies that appealed very much to the middle class. They essentially unseated the Conservative Party from the centre ground of British politics. In effect, the real centre parties in a number of Western European countries (Italy being one example) were squeezed out as the ideological distinction between left and right kept getting lost.
So countries were embracing the concept of free enterprise and capitalism was given a more compassionate look. The state retreated from its operating role in the economy and took on the role of the regulator. Using old jargon, control of the means of production by the state, which was one of the marks of distinction of left-wing governments, was no longer an economic objective to pursue.
The question I would like to ask is whether the ideological distinction that seemed to have been lost is now making a comeback.
What spurs me to ask this question is a statement made by one of the exponents of the British Labour Party, who stated that we should view taxes as a means of punishing the rich. We could also cite the example of French President Françoise Hollande, who has used taxation policy in furtherance of Socialist aims.
Another aspect of such a distinction is the way governments view the role of fiscal policy and how to address the problem of unemployment, which is showing no sign being resolved. Left-wing policies propose direct investment into the economy by the state, while right-wing policies propose reforms that would eventually enable the economy to grow without the need for direct state investment in production activities.
Are left-wing parties once more seeking to distinguish themselves from right-wing parties in the economic debate? I believe so.
Are left-wing parties once more seeking to distinguish themselves from right-wing parties in the economic sense? I believe so
Why it is happening may not be so clear. However, if we believe that the economic and financial crises of the last years imply a defeat of the capitalist system, then we may have the cause of this development.
Resurrecting this ideological distinction should not mean the resumption of what used to be called the class struggle or the creation of social unrest. It simply means that there is a clear choice between economic policies of the two major parties in most, if not all, the Western European countries.
Another important consequence of this is that the middle ground will no longer just represent a battleground for votes, as has happened in the last 20 years or so, but will become once more the area which represents economic policies that are clearly distinct from the ideological right and left.