Postwar: A History of Europe Since 1945

by Tony Judt

Some of the ideas propounded, notably in Austria and among the British Fabians, derived from an older Socialist tradition, but many more had their origins in pre-1914 liberal reformism. The nineteenth-century ‘caretaker’ state, its attention confined to security and policing, was outmoded, so the argument ran. If only on prudential grounds—to forestall political upheaval—it would now be necessary to intervene in economic affairs to regulate imbalances, eliminate inefficiencies and compensate for the inequities and injustice of the market. Before 1914 the main emphasis in such reformist projects was confined to calls for progressive taxation, protection of labour and, occasionally, state ownership of a restricted number of natural monopolies. But with the collapse of the international economy and the ensuing war, planning took on a greater urgency and ambition. Competing proposals for a national Plan, in which the state would intervene actively to support, discourage, facilitate and if necessary direct key economic sectors, circulated widely among young engineers, economists and civil servants in France and Germany.