If we wake up from our dreams we’ll see what the postmodern left already sees, which is that the explosive growth of economic freedom in recent decades has created two very large social problems.
• Greater economic freedom has brought greater economic inequality, as it always has in the modern era. Those with sufficient capital, talent, and ambition are able to use their greater freedom to exploit opportunities and capture efficiencies. Others fall behind. This is a threat to social solidarity.
• Greater economic freedom accelerates the rate of creative destruction, again, as it always has in the modern era. This means that communities, and even nations, organized around existing industries and types of employment are increasingly vulnerable to dislocation and disintegration. This too is a threat to social stability.
These are not economic problems, and therefore cannot be addressed by increasing economic freedom, as the Romney campaign imagined. In the broadest sense of the term, they are political problems, as the social problems associated with the explosive successes of capitalism have always been in the modern era. Dealing with them will require political and not economic approaches. [emphasis in original]
I think Reno pretty well identifies the problem which modern society faces: It's clear that free market economies create unprecedented growth, but at a political level societies need to figure out how to ameliorate their side effects without cutting off the growth itself. He's also right that there's a "postmodern left" which already sees this. As libertarians enjoy cheekily pointing out, Europe's social democracies have in recent years been trying things which only the most libertarian in the US have proposed, such a privatizing the post office.
The thing is misses is that there's a reactionary left, of sorts, which holds that this isn't a political problem, but rather an economic one. That there's a way that "the system" could be reformed such that the economy itself would work in some more egalitarian fashion. We're not in an odd situation in which nostalgia for the 30s through the 50s is widespread in a certain sector of the left, which holds that the economy was much better then.
It seems to me that the jury is still out on whether the backward-looking or the free market left is likely to be the dominant force of the left in the coming years in the US, and obviously it's a lot easier for the right (which has been arguing against forms of socialism for the last century) to respond to the backward looking left which is a familiar adversary than to come up with an alternative political vision to that of the free market left -- which after all is more similar to the free market right vision anyway.