Martin Rhodes
- Published in print:
- 2000
- Published Online:
- November 2003
- ISBN:
- 9780199240920
- eISBN:
- 9780191600180
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199240922.003.0002
- Subject:
- Political Science, Comparative Politics
In the UK, as in Australia and New Zealand, the ‘liberal’ post‐war welfare state was conceived as a minimal safety net under conditions in which full employment was to be ensured by (‘Keynesian’) ...
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In the UK, as in Australia and New Zealand, the ‘liberal’ post‐war welfare state was conceived as a minimal safety net under conditions in which full employment was to be ensured by (‘Keynesian’) macroeconomic policies. In the 1950s and 1960s, economic growth was constrained by stop–go policies trying to defend the pound as an international reserve currency in the face of inflationary wage pressures. After the dramatic failure of Labour economic policies in the crises of the 1970s, the (‘monetarist’) Conservative government of the 1980s succeeded in breaking the power of the unions and in stabilizing the currency at the expense of full employment, but did not fundamentally change the structure of the welfare state. After 1997, however, the ‘New Labour’ government set out to adjust the liberal welfare state to conditions in which government economic policies could no longer ensure full employment.Less
In the UK, as in Australia and New Zealand, the ‘liberal’ post‐war welfare state was conceived as a minimal safety net under conditions in which full employment was to be ensured by (‘Keynesian’) macroeconomic policies. In the 1950s and 1960s, economic growth was constrained by stop–go policies trying to defend the pound as an international reserve currency in the face of inflationary wage pressures. After the dramatic failure of Labour economic policies in the crises of the 1970s, the (‘monetarist’) Conservative government of the 1980s succeeded in breaking the power of the unions and in stabilizing the currency at the expense of full employment, but did not fundamentally change the structure of the welfare state. After 1997, however, the ‘New Labour’ government set out to adjust the liberal welfare state to conditions in which government economic policies could no longer ensure full employment.
Jamie Peck
- Published in print:
- 2010
- Published Online:
- January 2011
- ISBN:
- 9780199580576
- eISBN:
- 9780191595240
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199580576.003.0002
- Subject:
- Business and Management, Political Economy
This chapter presents a genealogy of neoliberalism as a free-market ideational program, from the early decades of the 20th century through to its consummation with state power in the 1970s. ...
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This chapter presents a genealogy of neoliberalism as a free-market ideational program, from the early decades of the 20th century through to its consummation with state power in the 1970s. Neoliberalism was born as a contradictory and contested project, specifically through a series of situated, sympathetic critiques of 19th-century laissez-faire. These were played out, most explicitly, through the work of the Mont Pelerin Society and its associated networks, though these have often been spaces of debate and contestation. In this sense, neoliberalism has always been an open-ended, plural, and adaptable project. At the heart of this lies its contradictory embrace of liberty and order — what can be seen as its ‘Chicago School’ and ‘Ordoliberal’ faces of neoliberalism, respectively. Highlighting the constructed nature of neoliberalism's ideational project, the chapter exposes some of the ‘hidden hands’ that shaped this purposive critique of, and alternative to, Keynesianism.Less
This chapter presents a genealogy of neoliberalism as a free-market ideational program, from the early decades of the 20th century through to its consummation with state power in the 1970s. Neoliberalism was born as a contradictory and contested project, specifically through a series of situated, sympathetic critiques of 19th-century laissez-faire. These were played out, most explicitly, through the work of the Mont Pelerin Society and its associated networks, though these have often been spaces of debate and contestation. In this sense, neoliberalism has always been an open-ended, plural, and adaptable project. At the heart of this lies its contradictory embrace of liberty and order — what can be seen as its ‘Chicago School’ and ‘Ordoliberal’ faces of neoliberalism, respectively. Highlighting the constructed nature of neoliberalism's ideational project, the chapter exposes some of the ‘hidden hands’ that shaped this purposive critique of, and alternative to, Keynesianism.
Raymond Plant
- Published in print:
- 2009
- Published Online:
- February 2010
- ISBN:
- 9780199281756
- eISBN:
- 9780191713040
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199281756.003.0010
- Subject:
- Political Science, Comparative Politics, Political Theory
A central theme of this chapter is the role of monetary theory within the neo‐liberal account of the role of the state. For a neo‐liberal thinker such as Mises, monetary theory consists of a set of a ...
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A central theme of this chapter is the role of monetary theory within the neo‐liberal account of the role of the state. For a neo‐liberal thinker such as Mises, monetary theory consists of a set of a priori truths derived from the concept of money itself. Thus, the quantity of money theory or monetarism is not one hypothesis among others within economics, but has a more profound status and basis than that. Such a monetary theory when allied to the points made in the first part of Chapter 8 along with other economic theories (such as crowding out and neo‐liberal microeconomic theories) undermine in a fundamental way Keynesian ideas. Such ideas have been central to Social Democracy and again therefore such a critique of Keynes is an attempt to undermine a basic means of arriving at social democratic ends such as social justice which have already been the subject of critical analysis. One central role for the state from a neo‐liberal view is the provision of public goods that is to say goods which rely on cooperation to produce but which cannot be partitioned so that only those who cooperate in their production can benefit (clean air would be an example). The market will not produce such goods because each individual has a strong incentive from a rational utility maximizing point of view not to contribute and they will therefore not be produced. The details of this argument are considered and analysed.Less
A central theme of this chapter is the role of monetary theory within the neo‐liberal account of the role of the state. For a neo‐liberal thinker such as Mises, monetary theory consists of a set of a priori truths derived from the concept of money itself. Thus, the quantity of money theory or monetarism is not one hypothesis among others within economics, but has a more profound status and basis than that. Such a monetary theory when allied to the points made in the first part of Chapter 8 along with other economic theories (such as crowding out and neo‐liberal microeconomic theories) undermine in a fundamental way Keynesian ideas. Such ideas have been central to Social Democracy and again therefore such a critique of Keynes is an attempt to undermine a basic means of arriving at social democratic ends such as social justice which have already been the subject of critical analysis. One central role for the state from a neo‐liberal view is the provision of public goods that is to say goods which rely on cooperation to produce but which cannot be partitioned so that only those who cooperate in their production can benefit (clean air would be an example). The market will not produce such goods because each individual has a strong incentive from a rational utility maximizing point of view not to contribute and they will therefore not be produced. The details of this argument are considered and analysed.
Andrew Gamble
- Published in print:
- 2013
- Published Online:
- January 2014
- ISBN:
- 9780197264935
- eISBN:
- 9780191760365
- Item type:
- chapter
- Publisher:
- British Academy
- DOI:
- 10.5871/bacad/9780197264935.003.0002
- Subject:
- Political Science, Political Economy
This chapter analyses the future of the British economy. It argues that a political economy perspective is necessary to understand the debates surrounding economic growth, and reviews the way in ...
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This chapter analyses the future of the British economy. It argues that a political economy perspective is necessary to understand the debates surrounding economic growth, and reviews the way in which commentators have analysed the challenges facing public policy. The chapter then examines debates about the financial crash and the deficit, the role and size of the state, and the appropriate growth model. The major alternative approaches to growth currently under discussion lie between a return to the liberal financial model – dominant since the 1980s and sometimes termed ‘privatised Keynesianism’ – and greater government intervention to restore the role of the manufacturing sector, possibly involving a shift to a more European-style corporatism. The chapter concludes by considering three scenarios: a return to growth; a shift in the international environment that renders austerity permanent; and the imposition of radical changes to curb expansion and cut back carbon emissions to sustainable levels.Less
This chapter analyses the future of the British economy. It argues that a political economy perspective is necessary to understand the debates surrounding economic growth, and reviews the way in which commentators have analysed the challenges facing public policy. The chapter then examines debates about the financial crash and the deficit, the role and size of the state, and the appropriate growth model. The major alternative approaches to growth currently under discussion lie between a return to the liberal financial model – dominant since the 1980s and sometimes termed ‘privatised Keynesianism’ – and greater government intervention to restore the role of the manufacturing sector, possibly involving a shift to a more European-style corporatism. The chapter concludes by considering three scenarios: a return to growth; a shift in the international environment that renders austerity permanent; and the imposition of radical changes to curb expansion and cut back carbon emissions to sustainable levels.
Julian E. Zelizer
- Published in print:
- 2012
- Published Online:
- October 2017
- ISBN:
- 9780691150734
- eISBN:
- 9781400841899
- Item type:
- chapter
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691150734.003.0008
- Subject:
- History, American History: early to 18th Century
This chapter examines fiscal conservatism under the Roosevelt administration. Fiscal conservatism has been linked to liberalism since the construction of the New Deal state. Indeed, a pragmatic ...
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This chapter examines fiscal conservatism under the Roosevelt administration. Fiscal conservatism has been linked to liberalism since the construction of the New Deal state. Indeed, a pragmatic alliance between liberals and moderate fiscal conservatives has played a key role in some of the most durable state-building efforts in U.S. history. This alliance produced bold federal initiatives in a nation historically resistant to centralized government. Building on the work of James Savage and David Kennedy, this chapter argues that fiscal conservatism constituted a key component of the New Deal during the years 1933–1938. It looks at two members of the administration who maintained pressure on Franklin Roosevelt to balance budgets: Lewis Douglas, who served as Director of Budget from 1933 to 1934, and Henry Morgenthau Jr., secretary of the treasury from 1934 to 1945. The chapter concludes with an assessment of Roosevelt's fiscal policy in relation to Keynesianism.Less
This chapter examines fiscal conservatism under the Roosevelt administration. Fiscal conservatism has been linked to liberalism since the construction of the New Deal state. Indeed, a pragmatic alliance between liberals and moderate fiscal conservatives has played a key role in some of the most durable state-building efforts in U.S. history. This alliance produced bold federal initiatives in a nation historically resistant to centralized government. Building on the work of James Savage and David Kennedy, this chapter argues that fiscal conservatism constituted a key component of the New Deal during the years 1933–1938. It looks at two members of the administration who maintained pressure on Franklin Roosevelt to balance budgets: Lewis Douglas, who served as Director of Budget from 1933 to 1934, and Henry Morgenthau Jr., secretary of the treasury from 1934 to 1945. The chapter concludes with an assessment of Roosevelt's fiscal policy in relation to Keynesianism.
Neil Brenner
- Published in print:
- 2004
- Published Online:
- October 2011
- ISBN:
- 9780199270057
- eISBN:
- 9780191699450
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199270057.003.0004
- Subject:
- Political Science, Political Theory
This chapter analyzes the political-economic geographies of spatial Keynesianism, the framework of national and local state territorial regulation that prevailed across much of western Europe during ...
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This chapter analyzes the political-economic geographies of spatial Keynesianism, the framework of national and local state territorial regulation that prevailed across much of western Europe during the ‘golden age’ of Fordist–Keynesian capitalism, roughly from the late 1950s until the late 1970s. It argues that spatial Keynesianism was composed of a variety of spatially selective political strategies through which western European national states attempted to manage the distinctive patterns of urbanization and uneven spatial development that crystallized across western Europe during the Fordist–Keynesian period. It analyzes the destabilization of spatial Keynesianism during the course of the 1970s, a development that opened up a political and institutional space for the subsequent proliferation of state rescaling strategies across western Europe.Less
This chapter analyzes the political-economic geographies of spatial Keynesianism, the framework of national and local state territorial regulation that prevailed across much of western Europe during the ‘golden age’ of Fordist–Keynesian capitalism, roughly from the late 1950s until the late 1970s. It argues that spatial Keynesianism was composed of a variety of spatially selective political strategies through which western European national states attempted to manage the distinctive patterns of urbanization and uneven spatial development that crystallized across western Europe during the Fordist–Keynesian period. It analyzes the destabilization of spatial Keynesianism during the course of the 1970s, a development that opened up a political and institutional space for the subsequent proliferation of state rescaling strategies across western Europe.
Franz Traxler, Sabine Blaschke, and Bernhard Kittel
- Published in print:
- 2001
- Published Online:
- October 2011
- ISBN:
- 9780198295549
- eISBN:
- 9780191685132
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198295549.003.0021
- Subject:
- Business and Management, HRM / IR, Political Economy
Because of the change from demand-side to supply-side policies, both liberal and corporatist labour relations underwent shifts in the period under consideratin in this book: from pluralism to ...
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Because of the change from demand-side to supply-side policies, both liberal and corporatist labour relations underwent shifts in the period under consideratin in this book: from pluralism to neoliberalism on one hand, and from classic to lean corporatism on the other. In the 1970s though, the experience of no form of coordinated bargaining did not match with empirical evidence. Nonetheless, uncoordinated bargaining outperformed peak-level coordination under low governability. Decentralized and uncoordinated bargaining and poorly organized labour relations thus proved to be more effective because they were more consistent with supply-side policies than with Keynesianism. The opposite, however, applies to classic corporatism. This chapter attempts to further explain these metamorphoses and shifts while also differentiating the different labour-relations regimes with one another in terms of coordination, bargaining, participation, centralization, and other such criteria.Less
Because of the change from demand-side to supply-side policies, both liberal and corporatist labour relations underwent shifts in the period under consideratin in this book: from pluralism to neoliberalism on one hand, and from classic to lean corporatism on the other. In the 1970s though, the experience of no form of coordinated bargaining did not match with empirical evidence. Nonetheless, uncoordinated bargaining outperformed peak-level coordination under low governability. Decentralized and uncoordinated bargaining and poorly organized labour relations thus proved to be more effective because they were more consistent with supply-side policies than with Keynesianism. The opposite, however, applies to classic corporatism. This chapter attempts to further explain these metamorphoses and shifts while also differentiating the different labour-relations regimes with one another in terms of coordination, bargaining, participation, centralization, and other such criteria.
Ewald Engelen, Ismail Ertürk, Julie Froud, Sukhdev Johal, Adam Leaver, Michael Moran, Adriana Nilsson, and Karel Williams
- Published in print:
- 2011
- Published Online:
- January 2012
- ISBN:
- 9780199589081
- eISBN:
- 9780191731150
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199589081.003.0005
- Subject:
- Business and Management, Finance, Accounting, and Banking, Political Economy
This chapter is concerned with the question how banking could generate (unsustainable) returns of 15–25 per cent on equity before the crisis? Our answer is that in wholesale banking, small return per ...
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This chapter is concerned with the question how banking could generate (unsustainable) returns of 15–25 per cent on equity before the crisis? Our answer is that in wholesale banking, small return per asset were beefed up through leverage while bonuses and profits were multiplied through the construction of ever more fragile latticeworks that were the result of bricolage and regulatory arbitrage. In retail banking, profitability was much less impressive and resulted mainly from cross selling and ramping up of transactions. These transformations were related to the emergence of a banking business model that was driven by shareholder value. A further aim of this chapter is to show how mainstream economics failed to understand banking and how the heterodox economists that got it right were right for the wrong reasons. The message is that finance and banking were not so much out of control as beyond control.Less
This chapter is concerned with the question how banking could generate (unsustainable) returns of 15–25 per cent on equity before the crisis? Our answer is that in wholesale banking, small return per asset were beefed up through leverage while bonuses and profits were multiplied through the construction of ever more fragile latticeworks that were the result of bricolage and regulatory arbitrage. In retail banking, profitability was much less impressive and resulted mainly from cross selling and ramping up of transactions. These transformations were related to the emergence of a banking business model that was driven by shareholder value. A further aim of this chapter is to show how mainstream economics failed to understand banking and how the heterodox economists that got it right were right for the wrong reasons. The message is that finance and banking were not so much out of control as beyond control.
Grahame Thompson
- Published in print:
- 2012
- Published Online:
- September 2012
- ISBN:
- 9780199694761
- eISBN:
- 9780191741289
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199694761.003.0013
- Subject:
- Business and Management, Organization Studies
The chapter analyzes the mergent ways companies are becoming overtly political actors and pursues the consequences of this for the future of the corporation. The discussion begins by analyzing the ...
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The chapter analyzes the mergent ways companies are becoming overtly political actors and pursues the consequences of this for the future of the corporation. The discussion begins by analyzing the relationships between owners and shareholders in the context of the legal constitution of corporations. The chapter moves on to take up ‘the debate’ about the divorce of ownership from control in the light of this thorough examination of the legal status of the corporation, in so doing revisiting the terms of that debate in the 1930s and 1940s that arose in the light of the Berle and Means’ book, The Modern Corporation and Private Property(1932). Subsequent to this it moves on to think about the possible future of the corporation and the potential for the reform of corporate governance in this light of current circumstances and trends in a post-crisis world.Less
The chapter analyzes the mergent ways companies are becoming overtly political actors and pursues the consequences of this for the future of the corporation. The discussion begins by analyzing the relationships between owners and shareholders in the context of the legal constitution of corporations. The chapter moves on to take up ‘the debate’ about the divorce of ownership from control in the light of this thorough examination of the legal status of the corporation, in so doing revisiting the terms of that debate in the 1930s and 1940s that arose in the light of the Berle and Means’ book, The Modern Corporation and Private Property(1932). Subsequent to this it moves on to think about the possible future of the corporation and the potential for the reform of corporate governance in this light of current circumstances and trends in a post-crisis world.
Peter Clarke
- Published in print:
- 1990
- Published Online:
- October 2011
- ISBN:
- 9780198202196
- eISBN:
- 9780191675201
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198202196.003.0017
- Subject:
- History, British and Irish Modern History, Economic History
Most of the extravagant claims about Keynesianism were generated posthumously rather than by the historical Keynes. True, he lent his sanction to a prospectus to ‘conquer’ unemployment in 1929. This ...
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Most of the extravagant claims about Keynesianism were generated posthumously rather than by the historical Keynes. True, he lent his sanction to a prospectus to ‘conquer’ unemployment in 1929. This was, however, defined as reducing unemployment to the level considered normal before 1914 — something under 5 percent on the official figures, as compared with 10 per cent in 1929. In 1930, he too spoke in terms of an unemployment disequilibrium and he too agreed that there were structural causes for British unemployment in a competitive world market, implying that wages must be too high. In retrospect, the 1960s can be seen as the peak of Keynesian prestige, from which there was nowhere to go but down. The post-war consensus in economic policy, maintaining full employment by demand management through fiscal changes and control of credit, was ostensibly derived from Keynes.Less
Most of the extravagant claims about Keynesianism were generated posthumously rather than by the historical Keynes. True, he lent his sanction to a prospectus to ‘conquer’ unemployment in 1929. This was, however, defined as reducing unemployment to the level considered normal before 1914 — something under 5 percent on the official figures, as compared with 10 per cent in 1929. In 1930, he too spoke in terms of an unemployment disequilibrium and he too agreed that there were structural causes for British unemployment in a competitive world market, implying that wages must be too high. In retrospect, the 1960s can be seen as the peak of Keynesian prestige, from which there was nowhere to go but down. The post-war consensus in economic policy, maintaining full employment by demand management through fiscal changes and control of credit, was ostensibly derived from Keynes.
