{{short description|Political and economic philosophy}} {{Not to be confused with|Economic liberalism}} {{multiple| {{more citations needed|date=December 2009}} {{Synthesis|section|date=March 2022}} }} {{progressivism}} '''Economic progressivism''' or '''fiscal''' '''progressivism''' is a [[Political philosophy|political]] and [[economic philosophy]] incorporating the [[socioeconomic]] principles of [[social democrats]] and [[Progressivism|political progressives]]. These views are often rooted in the concept of [[social justice]] and have the goal of improving the [[human condition]] through [[government regulation]], [[social protection]]s and the maintenance of [[public goods]].<ref>[https://www.americanprogress.org/issues/democracy/reports/2011/03/14/9311/the-origins-and-evolution-of-progressive-economics/ "The Origins and Evolution of Progressive Economics"].</ref> It is not to be confused with the more general idea of [[progress]] in relation to [[economic growth]].
Economic progressivism is based on the idea that [[capitalist]] [[Market (economics)|markets]] left to operate with limited government regulation are inherently unfair, favoring [[big business]], large [[corporations]] and the [[wealthy]]. Progressives believe that a fair market should result in a [[normal distribution]] of wealth, but in most countries the wealthy earn heavily disproportionate incomes. Hence, progressives advocate controlling the markets through public protections that they believe will favor [[upward mobility]], diminish [[income inequality]] and reverse [[marginalization]]. Specific economic policies that are considered progressive include [[progressive tax]]es, [[income redistribution]] aimed at reducing [[inequalities of wealth]], a comprehensive package of [[public services]], [[universal health care]], resisting [[involuntary unemployment]], [[public education]], [[social security]], [[minimum wage]] laws, [[Competition law|antitrust laws]], legislation protecting [[workers' rights]] and the rights of [[trade union]]s and a [[welfare state]].
The progressive economic philosophy is typically defined in opposition to [[economic liberalism]], ''[[laissez-faire]]'' and the conclusions of [[Austrian School|Austrian]] and [[Chicago school of economics|Chicago]] economics. Many organizations that promote economic progressivism can be characterized from a range of applying [[criticism of capitalism]] to being [[anti-capitalist]] and include principles and policies based on [[Keynesianism]], [[Marxism]] and other [[left-wing]] schools of socioeconomic thought. Economic progressivism can also be seen as a potential response to and treatment of social and economic problems such as [[affluenza]], [[environmental justice]], [[inverted totalitarianism]], [[market fundamentalism]], [[wage slavery]], and "[[socialism for the rich and capitalism for the poor]]" as well as a counter-argument to the [[culture of capitalism]], [[trickle-down economics]], and [[rugged individualism]].
== Overview == {{social democracy sidebar}} Economic progressivism is compounded with the larger political [[progressive movement]] that emerged in the Western World during the late 19th century and early 20th century. During this time, the movement and its ideas directly confronted the ''[[laissez-faire]]'' economics and increasing socioeconomic [[Economic inequality|inequality]] that characterised society. The term ''economic progressivism'', especially while describing policies of [[progressive taxation]], [[social welfare]] and general [[leftist]] economic measures, finds particular resonance in the parlance of the United States compared to rest of the world. Nations in Europe developed social welfare systems either by [[social-democratic]] governments or by more [[right-wing]] governments as concessions to pacify the population from moving further towards the left.<ref>{{cite web|url=https://www.researchgate.net/publication/329416200|title=European Welfare State in a Historical Perspective: A Critical Review|last1=Stefan|first1=George M.}}</ref> Meanwhile, less developed countries and [[postcolonial]] nations in Africa and Asia developed a tradition of social welfare systems being implemented to aid the population develop across social and economic indices. The development of economic progressivism has been markedly different across different parts of the world.
=== In Europe === {{Christian democracy sidebar}} Progressive economic policies in Europe have a slightly longer history<ref>{{cite web|url=https://www.researchgate.net/publication/329416200|title=European Welfare State in a Historical Perspective: A Critical Review|last1=Stefan|first1=George M.|website=ResearchGate|access-date=28 April 2020}}</ref> and many of the policies are not explicitly termed as "[[progressive politics]]". In Britain, England and Wales had the [[English Poor Laws]] in place since the 16th century. The laws existed under various period undergoing several modifications until the 20th century, when the [[Liberal Party (UK)|Liberal Party]] implemented several [[welfare reform]]s across the country. The [[Liberal welfare reforms]] from 1906 to 1914 strengthened labour laws and the position of trade unions, expanded education and introduced a pension system for the elderly, among other things. In Germany, chancellor [[Otto von Bismarck]] created the first comprehensive [[welfare state]] in modern industrial society. To curb the influence of [[socialism]] and to appease the working-class population, Bismarck employed [[State Socialism (Germany)|State Socialism]] and implemented a series of laws during the 1880s and 1890s. These included the Workers Protection Act, the Health Insurance Bill, the Accident Insurance Bill and the Old Age and Disability Insurance Bill, all designed to increase the welfare of the newly create German nation state.
Progressive economic policies in terms of the welfare state expanded significantly across Europe in the [[post-World War II]] period. This manifested in the domestic politics in those countries. In Germany, one had the struggle between [[Centre-left politics|left-leaning]] [[Social Democratic Party of Germany|Social Democrats]] and the [[Centre-right politics|right-leaning]] [[Christian Democratic Union of Germany|Christian Democrats]]. In the United Kingdom, the struggle was between [[Labour Party (UK)|Labour]] on the left and the [[Conservative Party (UK)|Conservatives]] on the right. The welfare state and policies such as [[progressive taxation]] emerged throughout Europe. Scandinavian nations became exemplary in introducing steep rates of progressive taxation and extensive welfare schemes as part of their [[Nordic model]].<ref>{{cite journal|url=https://www.cambridge.org/core/journals/journal-of-international-and-comparative-social-policy/article/early-cold-war-and-the-western-welfare-state/1490207DCE967F119F867488AA17530D|title=The early Cold War and the Western welfare state|last1=Petersen|first1=Klaus|journal=Journal of International and Comparative Social Policy|year=2013|volume=29|issue=3|pages=226–240|doi=10.1080/21699763.2013.855129|s2cid=155000807|access-date=28 April 2020|url-access=subscription}}</ref> However, the rise of [[neoliberal]] [[free-market]] economics led to a decline in progressive economics towards the end of the 20th century, particularly in the United Kingdom, where the premiership of [[Margaret Thatcher]] saw the dismantling of powerful [[trade union]]s, reduction of [[government expenditure]] and increased [[privatisation]] in the 1980s which continued throughout he 1990s.
The aftermath of the [[Great Recession]] saw the resurgence of a demand for a return to increased government expenditure. The [[anti-austerity movement]] that emerged during the [[Great Recession in Europe]] saw countries such as Greece, Spain and the United Kingdom.{{Clarify|reason=incomplete sentence|date=September 2020}} Like the [[Occupy Wall Street]] movement across the Atlantic, people started protesting government response to the financial meltdown which involved cutting down of government spending to manage budget deficits. This involved cutting spending on measures such as healthcare, education and other social welfare benefits.
=== In the United States === {{Progressivism US}} In the United States, the term ''[[Progressivism in the United States|progressive]]'' is often contrasted with [[neoliberal]] free-market ideology. The progressive movement emerged during the 1890s and 1920s in the so-called [[Progressive Era]]. Within this larger political movement tackling corruption and social inequalities was the introduction of economic policies that aimed to neutralise the worst excess of [[capitalism]]. This era was marked by the growth of [[labour union]]s such as the [[American Federation of Labour]], the expansion of [[labour rights]], the establishment of [[antitrust laws]] targeting major monopolistic firms and industries and an increase in taxation of the upper class. Progressive economic policies emerged as a response to the excessive [[big business]] power and the concentration of wealth and power amongst a very small fraction of society during the [[Gilded Age]]. This period introduced many landmark economic policies, including the introduction of an income tax in 1913. The [[estate tax]] also introduced in 1897, first in the state of New York. By 1924, estates valued at more than $10 million were taxed a rate of 40%.<ref>{{cite book|title=Progressivism, Liberalism and the Rich|last1=McGerr|first1=Michael|year=2016|pages=243–263|publisher=Yale University Press|jstor=j.ctt1g69wkf.15|isbn=9780300204841}}</ref>However, the structural legacy of slavery entrenched racial hierarchies within the American labor force.<ref>Foner, Eric. ''Give Me Liberty!: An American History''. W.W. Norton & Company, 2014.</ref><ref>[https://www.archives.gov/exhibits/feature/slavery-and-the-constitution "Slavery and the Constitution"], U.S. National Archives.</ref> These hierarchies created a segmented labor market in which access to employment, wages, and social mobility was distributed along racial lines.<ref>[https://www.pewresearch.org/social-trends/2019/04/09/race-in-america/ "Race in America: Public Attitudes Across Racial Lines"], Pew Research Center, 2019.</ref> This fragmentation contributed to divergent and sometimes conflicting political interests within the working class, undermining efforts at cross-racial class solidarity.<ref>Loewen, James W. ''Lies My Teacher Told Me: Everything Your American History Textbook Got Wrong''. New Press, 2007.</ref> As a result, the development of a unified left-wing political movement in the United States was constrained. Racial stratification also limited public support for redistributive policies—such as taxation, welfare programs, and income equality—reducing the political viability of economic progressivism in the American context.<ref>”Decoding the American Paradox: Historical Perspectives on its Immunity to Left-Wing Politics”,|website=https://dx.doi.org/10.2139/ssrn.4695355</ref>
During the [[Great Depression]] in the 1930s, [[Democratic Party (United States)|Democratic]] President [[Franklin D. Roosevelt]]'s administration created the [[New Deal]] programme. The government become heavily involved in stimulating economic growth through increased expenditure, following [[Keynesian]] economic policies of using fiscal policy through government subsidies and investment in various industries like infrastructure, agriculture and commodities to provide to increase economic output. The [[Great Depression in the United States]] was marked by massive unemployment and poverty. The New Deal programme provided jobs through investment in many large infrastructure projects such as housing, transport infrastructure, civil administration and farming. There was also the creation of government departments such as the [[Public Works Administration]] to oversee government activity in industry. From then until the late 1960s, with Democratic President [[Lyndon B. Johnson]]'s [[Great Society]] program, there was significant government activity in investing in industries, education, healthcare and general social welfare of the population. During the presidency of [[Republican Party (United States)|Republican]] [[Ronald Reagan]] in the 1980s, neoliberal [[free-market economics]] came back into prominence in government policy. This period was characterised by increasing privatisation in industries, healthcare and education. It was also marked by a decrease in taxation of businesses and a decrease in government reliance of fiscal policy, with increasing use of monetary policy instead. [[File:Bernie Sanders (25344980663).jpg|thumb|upright=1.1| U.S. Senator [[Bernie Sanders]] speaking with supporters at the Agriculture Center at the Arizona State Fairgrounds in Phoenix, Arizona in 2016.]] ''Progressive economics''—also known as '''New Progressive Economics'''<!-- bolded per [[WP:MOSBOLD]] are a redirect target --><ref name=vox20241004>{{cite news |url=https://www.vox.com/2024-elections/377170/kamala-harris-economic-policy-new-progressive-economics |title=The rise — and fall? — of the New Progressive Economics |last=Prokop|first=Andrew |work=[[Vox Media|Vox]] |date=4 October 2024 }}</ref>—made a comeback in the United States to the forefront public discourse after the [[Great Recession]] of the late 2000s. Popular dissatisfaction with government policies favouring big business and the bailout of banks led to the emergence of the [[Occupy Wall Street]] movement. Subsequently, Vermont Senator [[Bernie Sanders]] and his policies of progressive taxation, [[universal healthcare]] for all ([[Medicare for All]]) and free higher education, amongst others, also gained prominence across the country. Sanders, who ran for the Democratic presidential nomination in both the 2016 and 2020 presidential primaries, lost out to his rivals in securing the nomination. However, his policies have seen a rise in popularity and mainstream acceptance within the time period. Since then, many other politicians from the Democratic Party advocating progressive economic policies begun to gain prominence nationally. Among them are Senator [[Elizabeth Warren]], who also sought to win the 2020 democratic presidential nomination, along with members of the [[Congressional Progressive Caucus]]. Even some in the [[Republican Party (United States)|Republican Party]] have advocated for economic progressivism (but using populist and traditionalist rather than social justice rhetoric).{{update after|2020}}<!-- what happened to this arc of economic history and political history following the Sanders campaigns? did it strengthen or weaken politically? who were proponents and detractors? did it have power in subsequent presidential administrations and or salience in election campaigns? -->
== See also == * [[Criticism of capitalism]] * [[Democratic socialism]] * [[Economics]] * [[Kirchnerism]] * [[Liberal socialism]] * [[New Deal]] * [[Nordic model]] * [[Progressive capitalism]] * [[Social democracy]] * [[Welfare state]]
== References == {{reflist}}
{{DEFAULTSORT:Economic Progressivism}} [[Category:Economic progressivism| ]]<!-- Eponymous category first. --> [[Category:Christian democracy]] [[Category:Democratic socialism]] [[Category:Economic ideologies]] [[Category:Progressivism]] [[Category:Social liberalism]] [[Category:Social democracy]] [[Category:Welfare state]]
[[it:Interventismo (economia)|Interventismo]]