Democratic governments face two main challenges in trying to revive their post-World War II social contracts. They must ensure a strong and efficient social safety net for the digital age, while taking concrete steps toward providing global public goods such as tackling climate change.
WASHINGTON, DC – The success of Western-style democracy after World War II was based on national social contracts: citizens paid taxes, and the state provided the conditions for steady economic progress, along with secure jobs, a social safety net, and redistributive policies that narrowed the income gap between owners and workers. Although the degree of redistribution and the availability of secure jobs varied among countries, the vast majority of citizens bought into the arrangement.
WASHINGTON, DC – The success of Western-style democracy after World War II was based on national social contracts: citizens paid taxes, and the state provided the conditions for steady economic progress, along with secure jobs, a social safety net, and redistributive policies that narrowed the income gap between owners and workers. Although the degree of redistribution and the availability of secure jobs varied among countries, the vast majority of citizens bought into the arrangement.