1. Does the highlighted text mean "the government had stopped the use of modern art for the purpose of posing against the benefits of nation state"?
2. Does "the State" here mean "the government" and does "vested interests" mean "benefits"?
3. Is "a legacy well established by World War II" referring to "nation state" or "the fact that it appeared that the State had severed..."?
Context:
At the same time, critics like Clement Greenberg in the US pronounced that modern art was completely autonomous or independent of society and of politics more generally. This position might be understood as modernist criticism’s denial of the State’s ongoing (re)politicizing of modern art; the critic Moira Roth noted the “indifference” that Greenberg’s position generated in American contemporary art of the time. Thus it appeared that the State had severed modern art’s association with the position of (socialist) dissent toward the vested interests of the nation state, a legacy well established by World War II.
g. the interests of the political establishment and big business) whereby the nation state preserves and maintains itself. It does not mean "benefits".
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"vested interests of the nation state" means the established order (e.g. the interests of the political establishment and big business) whereby the nation state preserves and maintains itself. It does not mean "benefits".
"a legacy well established by World War II" refers to modern art's traditional position of dissent towards the vested interests of the nation state.