ABSTRACT
A pervasive sense of pessimism and even a degree of defeatism have dominated the welfare state literature ever since the first oil shock put an abrupt end to the now-mythical ‘Golden Age’ of welfare capitalism. That a general sense of dread came to prevail in the years immediately after the oil price shocks of the mid-to late 1970s is scarcely surprising; the consequences of the economic crisis that ensued were after all both brutal and profound. The general economic slowdown brought about a collapse in the demand for labour precisely at a time when many youngsters (the sizable post-war baby boom cohort) and women were entering the labour market. In addition, the energy price shock severely affected employment in manufacturing, which up until then had been sustained by historically unprecedented levels of economic growth. The social consequences of sudden and massive job shedding in industry were particularly disruptive because manufacturing had traditionally provided stable, relatively well-paid employment to many a breadwinner, even to those with little formal education. The economic crisis directly affected the central supporting pillar of the welfare capitalist system, the (male) breadwinner and it created a particularly unwelcoming climate for the scores of newcomers on the labour market.
