The Failure of Anglo-liberal Capitalism (Building a Sustainable Political Economy: SPERI Research & Policy)
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Colin Hay argues that the crisis in which we are still mired is best seen as a crisis of growth and not as a crisis of debt. It is a crisis of and for an excessively liberalised form of capitalism and the Anglo-liberal growth model to which it gave rise.
10.1057/9781137360519 - The Failure of Anglo-liberal Capitalism, Colin Hay Copyright material from www.palgraveconnect.com - Trial Access - PalgraveConnect - 2013-11-01 From Bubble Burst to Austerity The Failure of Anglo-liberal Capitalism depends on how it is perceived – specifically whether it is seen to signal an exhaustion of the paradigm or (as here) to emerge from a violation of its core precepts. Yet we need to be careful here. For the current debt crisis discourse – though firmly
patterns of economic performance since 2010 than, say, government or Office of Budget Responsibility (OBR) growth projections. What makes such a hypothetical test of expectations all the more definitive is that until recently the Cameron–Clegg Coalition has in fact talked far tougher on deficit reduction than its practice would suggest. As the National Institute for Economic and Social Research pointed out at the time, the 2010 Emergency Budget’s revised timetable for fiscal rebalancing in fact
PalgraveConnect - 2013-11-01 58 59 is suicidal and threatens only to produce a vicious circle of declining economic output. But this is not to suggest that there is a simple trade-off between deficit and debt reduction and growth promotion – merely that deficit and debt reduction must be made conditional on growth. Governments, in such a conception, would need to be clear about their strategy for securing growth and to make a strong public pre-commitment both to an explicit growth target and
www.palgraveconnect.com - Trial Access - PalgraveConnect - 2013-11-01 Index Index Davidson, Paul, 52 debt government, 19–20, 21, 24, 27, 40, 46, 58–9 household, 10–11, 15–16, 35 mortgage, 10, 11, 14, 24, 27, 53 deficit reduction, see austerity budget, 18–20, 46, 58–9 public sector, 12, 18–20, 42, 44, 45–6, 49 demographic change, 15, 29, 55 demutualisation, 24 depreciation, of sterling, 55 deregulation, 2, 4, 24 financial market, 2 divergence, 31 Dolphin, Tony, 42 equity release, 15 European
from this); second, through the contagion affects associated with their financial exposure to US assets and particularly their reliance on international lines of credit; and, third, through their exposure to a downturn in global trade volumes. Consider Britain, perhaps the most exposed of the first-wave economies to the effects of financial contagion by virtue of the sheer size and the distinctive character of its financial services sector and the reliance of its growth model on access to