Economic Problems and Political Dilemmas

Abstract

Proceeding from the thesis that the success of the neo-liberal agenda can also be attributed to the fact that middle class interests and mentalities have changed over time, Chapter 8 recounts how in the wake of neo-liberal reforms the socio-economic and political positioning of the middle class has tended to worsen. In socio-economic terms, income stagnation, growing inequality, unemployment and new austerity policies are identified. In political terms, Mau cites the increasing influence of the wealthy and the growing power of markets versus average citizens to shape policy. The chapter points to the risks of this political weakening of the middle class, as well as to the paradox of its simultaneous entanglement with the market and the enduring reliance of portions of the middle class on the state.