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Book Review: Social Democracy, Laissez-faire, and the “Third Way” of Capitalist Development

Prior to the triumphant assault on Keynesianism by the New Right, Paul Mattick anticipated the collapse of the welfare state on the basis that the ever-greater appropriation of value for the purpose of downward redistribution would eventually meet the brick wall of resistance by capital (Mattick 1969). There followed a succession of influential analyses, each showing in its own way why the capitalist state could not be relied on to maintain the post-1945 social democratic settlement (O’Connor [1973] 2002; Gough 1979; Offe 1984).