Sentence:  As it is , they consider that the North is now reaping the fruits of excess egalitarianism , that in spite of its high standard of living the `` American way '' has been proved inferior to the English and Scandinavian ways , although they disapprove of the socialistic features of the <WSD>latter</WSD> . 
Meaning of the word marked with <WSD> tags:  referring to the second of two things or persons mentioned (or the last one or ones of several)