Ian Shapiro, Sterling Professor of Political Science and Global Affairs at Yale, examines how center-left parties reinvented themselves after the Cold War. Continuing from the previous lecture's psychology of distributive politics, he applies absolute versus relative gains, loss aversion, the endowment effect, and prospect theory to explain the rise and decline of unions in the United States and Europe. He traces how left and center parties behave differently under two-party versus multiparty systems, and challenges the common assumption that multiparty systems produce more redistribution today. The lecture is part of the DeVane Lecture series, Power and Politics in Today's World, delivered at Yale in fall 2019 and open to the public, and connects directly to Shapiro's book After the Fall. It sits within a broader argument about the path from the euphoria after communism's collapse to today's politics of fear and resentment.