Elections will determine Germany’s fiscal direction

Significance The debt brake, which places a strict limit on the issuance of public debt and reflects Germany's innate fiscal conservatism, is being challenged given COVID-19 disruption, a housing crisis and the commitment to transition to a net-zero emissions economy. Impacts The chances of a coalition excluding the CDU/CSU have increased in recent weeks following the CDU’s decline in the polls. The European Commission will be sympathetic to the demands of southern European countries when considering fiscal reforms. A substantial reduction in German debt issuance could see the ECB exceed its debt limits.

Boredom proneness, political orientation and adherence to social-distancing in the pandemic.

Research recently showed that boredom proneness was associated with increased social distancing rule-breaking in a sample collected early in the COVID-19 pandemic. Here we explore data collected early in the pandemic to examine what factors might drive this relation. We focus on political affiliation. Given the functional account of boredom as a call to action, we hypothesized that this urge to act may drive individuals towards outlets replete with symbolic value (e.g., ideology, identity). In addition, given the politicization of some social distancing rules (e.g., mask wearing), we explored whether those who adhere to strong political ideologies—particularly conservative ideologies—would be more likely to rule-break. Moderation analyses indicated that boredom proneness and social (but not fiscal) conservatism were indeed predictive of rule-breaking. These results highlight the need for both clear messaging emphasizing the strength of communal identity and action (i.e., that “We are all in this together”) and for interventions that emphasize shared collective values in contexts that appeal directly to social conservatives.

Dictatorship, Higher Education, and Social Mobility

We study the capture of higher education by the Pinochet dictatorship following the 1973 military coup in Chile. We show that the regime’s twin aims of political control and fiscal conservatism led to a large contraction of all universities in the country, mostly through a steady reduction in the number of openings for incoming students. As a result, individuals that reached college age in the years immediately after the military coup experienced a sharp decline in college enrollment. These individuals had worse labor market outcomes throughout the life cycle and struggled to climb up the socioeconomic ladder. Children with a parent in the affected cohorts are themselves less likely to enroll in university, even after democratization. These findings illustrate the relationship between political regimes, redistributive policies and social mobility. They also shed light on the long-lasting effects of the reform agenda implemented under Pinochet.

This time was different: the budgetary responses to the pandemic-induced crisis in Estonia

PurposeSince regaining its independence, the Estonian government has followed policies of fiscal consolidation when responding to economic crises. Its response to the COVID-19-crisis has been quite different – it has authorized additional expenditures, cut taxes and incurred considerable debt. This paper gives an overview of the budgetary measures adopted and explores the question: why was it different this time?Design/methodology/approachThe authors draw upon policy documents to zoom in on the main political, institutional and economic factors that help to explain Estonia's departure from extreme fiscal conservatism in the midst of the global pandemic.FindingsThe authors found the key political factors to be the party composition of the government, policy diffusion and policy learning. Key economic factors included Estonia's very low level of debt prior to the crisis and credit market advantages gained from Eurozone membership.Originality/valueEstonia presents an interesting case because in all previous crises it responded with fiscal consolidation, whereas it is now responding with extensive fiscal stimulus.

Community care: a brief overview

This short chapter provides a brief overview of the development of community care. It examines the way that the asylum became an obsolete institution - certainly one that few defenders in the early 1980s. In giving a brief overview of the intellectual underpinnings of community care, the chapter introduces a series of issues such as: deinstitutionalisation and the penal state, community care inquiries and the asylum/community binary that are examined in depth in subsequent chapters. Community care is a complex and highly influential shift in mental health services. As with all policies, there were a series of drivers behind the policy - a combination of progressive idealism that attacked the whole notion that institutions could ever provide humane, dignified care and fiscal conservatism

Conclusion

This chapter brings together the main themes of the volume. It argues that deinstitutionalisation and community care should be understood as distinct policies – one should follow on from the other, but this has not happened. These policies which have been adopted across the globe were driven by a combination of fiscal conservatism and progressive idealism. Fiscal conservatism was, for most of the period, the dominant force. Community care has become discredited, but it can be reinvigorated by a call to the progressive idealism that underpinned it.

Southern White Privilege

In order to solidify support among its southern white base, the GOP offered powerful characterizations of the haves and have-nots, of the taxpayer and the tax recipient, of the makers and the takers, all of which promoted the belief that some Americans deserved privileges but others did not. Thus, the techniques of the Long Southern Strategy are more complex than simply elevating whiteness to maintain the racial hierarchy. Additionally, the Long Southern Strategy turned the political arena into a zero-sum economic game, in which only one group could prosper. GOP leaders framed federal entitlements as big government waste and minority advancement as tantamount to white persecution. In turn, opposition to both safeguards white privilege by championing fiscal conservatism and pretending whiteness is a meritocracy. While a popular and effective dog whistle, these messages make southern whites vulnerable to identity politics and subject to vote against their economic self-interest.

UK economic strategy could bring short-term results

Subject UK economic outlook. Significance The United Kingdom’s economic strategy under Prime Minister Boris Johnson signals a clear break with the fiscal conservatism of the last decade. In order to both boost productivity and growth, and address the political backlash against cuts to public services, the government has promised to implement significant spending increases and tax cuts. Impacts London's plans are to show the EU that it is ready for a no deal and opposition parties that the Conservatives are ready for elections. Extra borrowing will not cause significant market difficulties in the short term, even if there is a no-deal Brexit. A no-deal Brexit will increase significantly the pressure to strike free trade agreements with such countries as the United States.