The myth of a democratic socialist society funded by capitalism is finished

What is being challenged is nothing less than the most basic premise of the politics of the centre ground: that you can have free market economics and a democratic socialist welfare system at the same time. The magic formula in which the wealth produced by the market economy is redistributed by the state – from those who produce it to those whom the government believes deserve it – has gone bust. The crash of 2008 exposed a devastating truth that went much deeper than the discovery of a generation of delinquent bankers, or a transitory property bubble. It has become apparent to anyone with a grip on economic reality that free markets simply cannot produce enough wealth to support the sort of universal entitlement programmes which the populations of democratic countries have been led to expect. The fantasy may be sustained for a while by the relentless production of phoney money to fund benefits and job-creation projects, until the economy is turned into a meaningless internal recycling mechanism in the style of the old Soviet Union…

Mitt Romney had been hinting, in an oblique, undeveloped way, at this line of argument as he moved tentatively toward finding a real message. Then he took the startling step of appointing Congressman Paul Ryan as his running mate, and the earth moved. If Romney was the embodiment of the spirit of a free market, Ryan was its prophet. His speech at the convention was so dangerous to the Obama Democrats, with their aspirations toward European-style democratic socialism, that they unleashed their “fact checkers” to find mistakes (“lies”) in it. (Remember the old Yes Minister joke: “You can always accuse them of errors of detail, sir. There are always some errors of detail”.) When Romney and Ryan offer their arguments to the American people, they are, of course, at an advantage over almost any British or European politician. Contrary to what many know-nothing British observers seem to think, the message coming out of Tampa was not Tea Party extremism. It was just a reassertion of the basic values of American political culture: self-determination, individual aspiration and genuine community, as opposed to belief in the state as the fount of all social virtue.