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direction of global economy in 1970s

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the social democracy model failing

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the model of big companies, big government, big unions doesn't seem to be working culturally or economically

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capitalism being questioned

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1975, Time Magazine cover, "Can Capitalism Survive?"

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1980, Time Magazine cover, "Is Capitalism Working?"

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the rise of communist parties in Western Europe

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Enrico Berlinguer

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early 1970s: traditional communism didn't look unstable yet

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it looked as though the Soviet Union and their allies were at least not failing

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the higher price of oil tended to favor the Soviet Union in the short run

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they produce a large amount of oil

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gives them hard currency

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enables them to bolster communist states

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economically, socially, it looks like state socialism might be working

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big alternatives that are emerging

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increased focus on civil rights

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there needs to be something more involved in world politics than just a balance of power

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1977-1981 Jimmy Carter was a symbol of some of this

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the Cold War "swing areas" of the 70s: key areas which instigated change

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1. Western and Central Europe

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2. China

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choices made in these areas are going to change the flow of the Cold War

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just as in other areas of history, these were key areas

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two U-turns

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1972: Edward Heath turns to the left

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was going to fix inflation and fight unions

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1972 gave into the unions

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increased spending

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increased inflation

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bitterly denounced by Thatcher, "this lady is not for turning"

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1982: Francois Mitterrand turns to the right

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leader of a democratic socialist party

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1981: had taken charge of France in partnership with the communists

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1982: joined a new economic and political consensus emerging in Europe which moved away from Communist influence

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democratic socialism

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had been slowly emerging in European governments throughout the 1970s

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1974-1979: Labour Party in England

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1981: Mitterrand's PS (Parti socialiste) party came into power and invited the Communist Party into his first government

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unions such as the one that caused Edward Heath's U-Turn in 1972

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unions want wages to keep up with inflation

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the public had to take sides

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Thatcher and British Conservatives

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Scargill and the striking miners

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the British public ended up mostly taking sides with Thatcher in this case

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surge of Eurocommunism

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Italy

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Enrico Berlinguer

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Spain

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had been under dictatorial rule of Franco

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1975: Franco passed away

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leading faction were democratic socialists

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rise of single-issue parties

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environment

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ethnic nationalism

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rise of concerns for governability and public order

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people feel like their societies are breaking down

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union policies are having too much influence

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domestic terrorists

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Italy: the Red Brigades

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formed 1970

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violent attempts to destabilize Italy by acts of sabotage, bank robberies, and kidnappings

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kidnapped and murdered Christian Democrat Prime Minister Aldo Moro

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Iran: U.S. embassy in Iran overrun by Iranian revolutionaries

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reaction to these events was: we need stronger public order

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democratic socialists can't free themselves of taint with association from the USSR

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by late 1970s, Soviets are getting a pretty bad press

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invasion of Afghanistan

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late 1970s: it's hard to look at the Soviet Union and see anything that looks like a model for the future

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the Soviet Union feels no strong incentive yet to reform their implementation of socialism which makes it difficult for socialist movements in Europe to get wide support from the public

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the result is that democratic socialism does not become the wave of the future in Europe