South By North Strategies, Ltd.

Paul Krugman reminisces about the economic and social policy debates of the 1980s.

If you’re an intellectual of a certain age, you remember that in the 80s and maybe a bit of a way into the 90s it was common on the right to see American society as being in a process of catastrophic moral decline, descending into social anarchy. Crime would continue to rise, chaos would continue to spread, until and unless we returned to the Victorian virtues — and more specifically, to Dickensian social policies, in which only the deserving poor — as so designated by faith-based charities — received help. That, by the way, was the meaning of “compassionate conservatism”, which was about dismantling the welfare state in favor of private charity.
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But then, in the 90s, a funny thing happened: in many ways, American society began healing. True, out-of-wedlock births continued to rise, although at a much slower pace. But crime plunged, and in general our society began to look a lot more functional. If you remember what New York was like in the Bonfire of the Vanities days, and you walk the city now, the transformation is awesome — and somehow that happened despite Social Security, Medicare, and Medicaid.