ABSTRACT
This chapter tries to outline the policies which can ensure "prosperity for all" in advanced capitalist countries in the foreseeable future. It identifies several crucial challenges that put this central social democratic value at jeopardy and discusses policy options for coping with them. The author is less optimistic about the chances of constructive turns in the ideology-driven public debate and of the problem of adequate policy re-designs in real-life politics, as also about the political support a truly social democratic agenda can still muster. Social democratic society has so far been based on a capitalist economy. Restoring taxation justice must form part of a social democratic agenda because basic principles of justice are violated and because the acceptance of collective solutions to many problems might become threatened. The changing demographic composition of society throughout the OECD world and even beyond is another challenge that affects the "social-security pillar" of the "social market economy".
