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Capitalists against MarketsThe Making of Labor Markets and Welfare States in the United States and Sweden$
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Peter A. Swenson

Print publication date: 2002

Print ISBN-13: 9780195142976

Published to Oxford Scholarship Online: November 2003

DOI: 10.1093/0195142977.001.0001

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Solidarity, Segmentation, and Market Control

Solidarity, Segmentation, and Market Control

(p.17) 2 Solidarity, Segmentation, and Market Control
Capitalists against Markets

Peter A. Swenson (Contributor Webpage)

Oxford University Press

This chapter develops an alternative theory about welfare state development, which posits that reformers try to root their legislation in cross‐class alliances intersecting the internally diverse interests of capital and labor. Reformers appeal to interests in progressive reform deriving from capitalists’ desire for regulation of markets. The theory about the politics of the welfare state draws on labor economics, arguing that macroeconomic shocks to systems of labor market governance (various forms of collective bargaining and managerial relations) create an opportunity for politicians to enlist capitalist support for regulatory assistance through social insurance and labor reform.

Keywords:   collective bargaining, cross‐class alliances, employers, management, interests, labor economics, politics, regulation, welfare state

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