After privatised Keynesianism

Document type
Colin Crouch
Date of publication
16 November 2008
Thinkpiece; 41
Social Policy
Social welfare
Material type

Download (486KB )

This paper reviews Keynesian economic theory and argues that recent policy has been based on 'privatised Keynesianism' rather than neoliberalism. The author outlines the global politico-economic system since the second World War, with a focus on developments since the 1980s. The reliance on widespread unsecured debt which was vital to economic growth since this period contributed to the financial crisis of 2008. Once privatised Keynesianism had become a model of general economic importance, it became a curious kind of collective good. Given that necessary to it was irresponsible behaviour by banks in failing to examine their asset bundles, that very irresponsibility became a collective good. This in itself explains why governments had to bail out the firms involved, nationalising privatised Keynesianism. The paper goes on to address the question of how capitalism and democracy are to be reconciled now, and looks at the right, left and 'third way' political responses.

Related to Social Policy

The Duty to Build Beautiful

A collection of essays on embedding the beauty agenda in policymaking

Theory of change in ten steps

Report on a theory of change

IFS Green Budget 2019

Report on global economic growth

More items related to this subject

Related to Compass

The context for a world without poverty.

This paper aims to look at how poverty can be ended as well as getting the support and backing for policies and strategies that could make a world without poverty possible. With this project, the Webb

The very modern prince: the 21st century political party and the political formation

This article examines the process of transition away from the traditional progressive political party. The author argues that the left parties – both social democratic and

Universal Basic Income: an idea whose time has come?

This paper examines the desirability and feasibility of introducing a universal basic income (UBI) scheme in the UK. It analyses the merits of such a scheme, how it might be implemented and what role

Social democracy withouit social democrats?

This report seeks to understand the rise and fall of social democracy as a temporary blip made possible by a particular alignment of forces after the Second World War. It then briefly describes the

More items related to this publisher