There is a correlation between public services and the resilience of the economy (see also topic 8). The pandemic has shone a new public light on the goods and services that are essential for well-being and social cohesion, and on the workers who deliver them. While the golden age of essential public services supplied by the state improved life expectancy, well-being and inclusion, more recently we are seeing a failure to maintain fundamental services for reasons such as political neglect, austerity measures, privatisation and the financialisation of the economy. Today we are paying the bill of inadequate services, inequality of access, deterioration in quality of services, system failures and systemic crises. 

The foundational economy puts an emphasis on the infrastructures/systems of everyday life in terms of providential services (health, care, education, social security and pensions) and material services (water and sanitation, housing, energy, transportation, communication, food, local banking, etc.) and other assets that matter for caring families and communities. With this as the focus, the objective must be on “well-being” and “liveability”. It is wrong to assume that these will automatically come about as a simple consequence of economic growth. 

In an economy of interconnected zones, the tradeable (highly) competitive economy is prevailing, to the detriment of other zones such as the provision of basic services (such as haircuts, furniture, holidays), or the foundational and daily essentials and care economy of family and households. 

While well-being depends on foundational essentials every day, the income of households is relevant but does not solve the problem of access to fundamental, universal and highquality services. We are talking here about services that the state should supply, supported by adequate investments because they are the badges of our civilisation. We are talking about material infrastructures and networks that make everyday life possible and secure. Our everyday capital is connecting and enabling people, economic stabilisers and social, cultural and political citizenship.

 Enlarging the concept of public services to a wider concept of foundational economy, we realise that this economic dimension is still important for employment and the quality of jobs as well as for the respect of climate change imperatives. Empowering public services for a new economy means striking a new balance that addresses the well-being of current and future citizens. A more explicit focus on “liveability” and “sustainability” must rebalance competitiveness and profitability. Promoting social infrastructures and collective services must rebalance private consumption. 

Territories are crucial for redesigning the foundational economy in a logic of liveability and sustainability. But localism (see also Topic 3) is not always the best solution. Some services for collective use can be built more efficiently at the centre (communication, education, healthcare systems). Building the future of the foundational economy requires a multi-scalar approach, which also needs coordination and financing on the international scale. 

The foundational economy requires a highly progressive taxation system and an accumulation of income and assets (see also topic 6). The role of intermediate organisations is key. Trade unions have a special role, as they are the largest organisations and can play a role in promoting goods and services. In fact, unions carry out these tasks and try out practices that deal with living conditions and social cohesion. Unions can play a role because they are organised across all levels (local, national and supranational).