The Triumph of Broken Promises: The End of the Cold War and the Rise of Neoliberalism

The economic shocks of the 1970s forced governments to impose austerity, leading to the end of the Cold War and the rise of neoliberalism. This study argues that the pressure to break promises spurred the end of the Cold War and provided Western leaders with the tools to shut down industries and impose austerity.

Format: Hardback
Length: 440 pages
Publication date: 30 September 2022
Publisher: Harvard University Press

The 1970s economic shocks played a pivotal role in bringing an end to the Cold War and the emergence of neoliberalism. These shocks compelled governments to implement austerity measures, which had far-reaching consequences. In this comprehensive study, Fritz Bartel argues that these economic shocks were the driving force behind both the end of the Cold War and the global spread of neoliberal economics.

The Cold War originated as a competition between capitalist and communist governments, each seeking to expand their social contracts and provide a better life for their citizens. However, the economic shocks of the 1970s challenged the viability of these promises. Energy and financial markets exerted immense pressure on governments to discipline their social contracts, rather than making them. As a result, political leaders were forced to break their promises, leading to the unraveling of the Iron Curtain.

The Triumph of Broken Promises delves into the narrative of how the pressure to break promises ultimately led to the end of the Cold War. In the West, neoliberalism provided political and ideological tools for leaders like Ronald Reagan and Margaret Thatcher to shut down industries, impose austerity, and prioritize the interests of capital over labor. In contrast, Eastern Europe saw resistance to market discipline, with revolutionaries like Lech Walesa in Poland rejecting attempts to impose market reforms. Mikhail Gorbachev attempted to reform the Soviet system, but the necessary changes were deemed too challenging.

As Soviet-style governments faced the imposition of economic discipline that contradicted their communist ideals, their legitimacy was irreparably damaged. In the West, however, politicians could promote austerity as an antidote to the excesses of ideological opponents, setting the stage for the rise of neoliberalism.

In conclusion, the 1970s economic shocks played a crucial role in shaping the end of the Cold War and the global spread of neoliberal economics. By forcing governments to break their promises and implement austerity measures, these shocks undermined the foundations of the communist and Soviet systems, paving the way for a new era of global economic order.

Weight: 694g
Dimension: 165 x 241 x 27 (mm)
ISBN-13: 9780674976788