Some 15,000 neo-Nazis dumped ‘pinstripe Nazis’ by commentators marched through the streets of Dresden in Germany carrying banners bearing slogans such as “Protect our homeland” “ Zero tolerance towards criminal asylum seekers” sending shock waves through the progressive and centrist forces of Europe who had thought they had buried fascism long ago.

They are members of a group called Pegida or Patriotic Europeans against Islamisation of the West. When this facebook group started these protests in March on Mondays only about 200 had turned up. This is the latest in the rise of the neo-fascist forces in Europe as a response to austerity measures being adopted by the governments in Europe since the financial meltdown of 2008.

In the UK for the first time in its 20-year history UKIP (UK Independence Party) with the main plank of anti-immigration have two seats at the Westminster. In France the fortunes of the National Front, a semi-fascist party has been on the rise.

The cut in welfare state activities are proposed as the only solution for the woes of the economy on the aftermath of the financial meltdown of 2008. The European economies have become less competitive as a result of the generous unemployment, disability, maternity, pension and other benefits given to the vulnerable sections of the society.

It used to be said one can gauge the culture of the society by examining the provisions it makes for the old and vulnerable sections of the society. Under the new regime it is suggested it is a sign of weakness. The old, the mentally and physical challenged people on benefit are to be named and shamed. The so called hardworking public that is those who are lucky to have some jobs are encouraged to call people on benefit as ‘benefit scroungers.’

BBC’s channel four (C4) identified a street in Birmingham (Tennet Street) as one where a large number of benefit claimants live and produced a series of episodes christened ‘Benefit Street’ that named and shamed the people living there. If the benefit system is cut down or abolished people will be forced to work hard at low wages and economy will be on the path of recovery, so goes the official argument.

The study of Wilensky(1975) (The Welfare State and Equality) had showed that the welfare state is ideology neutral. It rose to fulfil the reproductive needs of the society after the networks necessary for its reproduction namely, child rearing and caring for the old society were disrupted thanks to the rise of the post-industrial society in the western countries.

And so, wealthy nations spend three times as much for social security as they do for defence, while poor countries spend twice as much for defence as they do for social security. Whichever party is in power, that is whether it is the right off centre party like the Conservatives or the left off centre party like the Labour there were not much difference in their welfare stare policies in the UK as in all western societies.

Labour’s claim that welfare stare is their creation was an argument that used successfully to win over the financial support of the trade unions, something that the trade union bureaucracy accepted. With the New Labour under Tony Blair that claims was also given up though trade unions support them financially even now.

The present austerity measures were initiated by the Blair-Brown duo as prime ministers who also had put forward the idea that the welfare state has generated a generations of people who live off the state and never worked at all. David Cameron and George Osborne have only taken the agenda forward in a brutal fashion. Labour says if they come to power in 2015 elections they will follow suit but little caution.

In the light of the retreat of the welfare, two questions arise. One who will perform the reproductive function that the welfare state had undertaken. Two, the theory itself based on longitudinal study of many countries by Wilensky over a long period is itself challenged.

The radical interpretation of the origins of the welfare state that it was originated to pacify the rebellious working is more acceptable. And that would mean the working class have organize themselves and struggle all over again.

Centre left newspaper Guardian is full of letters to the editor by veterans of trade union struggles bemoaning the loss of what they had achieved through many years of relentless struggle. But then the present day leadership of the working class in the UK has lost their will to struggle, being satisfied at the morsels of bread they were offered from the table of the corporations through the welfare state and had forgotten their duty was to work for the radical reorganisation of the society itself.

The rise of the neo-fascist forces as a consequence of these austerity measures is set to fracture the social contract on which the western societies are based. But people are not willing to give up. A vibrant movement outside the political party system is taking roots. Movement such as Occupy, Vestas Workplace Occupation, UK Uncut, and Student protests are catching the imagination of the people.

And they carry banners bearing slogans like, “Real Democracy Now.” “Rebellion is coming.” A popular comedian Russel Brand brought out book titled “Revolution.” Though most commentators have dismissed this as an effort to ride the popular wave, he has raised an important view that is gaining ground, namely the giant corporations are dictating terms. The power has completely shifted to them. The relative bargaining power that trade unions had exerted has completely disappeared.
Even as austerity measures are hitting the working class hard, the corporations and people associated with them have increased their wealth exponentially. Most commentators feel this imbalance cannot last long.