The Disorders of Contemporary Capitalism

The aim of this study is to consider the three great 'disorders' of contemporary capitalism (Streeck, 2016): rising inequality, lack of economic growth and rising public and private debt within the context of contemporary Britain. These 'disorders' have been exacerbated by the Great Financial Crash of 2007/8 and its aftermath, and today show little sign of being resolved or even addressed. For rather than the Great Financial Crash leading to new opportunities for social and political change, the post-crisis situation is characterised by ever more aggressive forms of neoliberal governance that co-ordinate and regulate society through the economisation and marketization of all areas of life, and do so to serve the interests of an elite few. This is demonstrated, for example, by the post-crash actions of the Bank of England, whose use of quantitative easing and so-called 'emergency' low interest rates to revive the economy had the deliberate effect of inflating the value of assets. This favoured asset-holders and further entrenched the inequality caused by the increasing share of national wealth owned by the top 1%. [...]
The three disorders can be regarded as part of the fundamental and inherent inegalitarian dynamic of capitalism that requires constant intervention and regulation by the state. If this intervention and regulation does not occur then the danger is that British democracy and the social state will be undermined as, following Aristotle, a large middle class constitutes the bulwark of democracy and is at the heart of the social contract. Investigation of the evolution and current levels of the disorders in the British context will provide valuable factual and statistical information that can be used in the second part of the study, which is concerned with attitudes towards the disorders and their potential resolution. [...]
The key research questions of this project are:
- Are current levels of inequality, growth and debt historically anomalous?
- What are the likely implications of current levels?
- How are policy discourses created relative to economic conditions?
From a methodological perspective the study will be a mixture of quantitative and qualitative research methods. In order to tie together the three disorders of capitalism a detailed breakdown and meta-analysis will be required. Secondary analysis of existing data is the primary method by which this will be achieved, using high-quality data sets that are based on large representative samples. The sources addressed will be official statistics from the British government, as well as international organisations such as the World Bank, the IMF and the OECD. Data such as levels of government debt, government spending, unemployment and other important statistical data will be used. There is also a wide range of secondary literature that will require consideration, including work by authors such as Piketty (2014). An analysis of both contemporary and historical data will be necessary to determine the historical perspective. In addition more informal data, using publications such as the Sunday Times Rich List, will be analysed as this will give an insight into more popular views around wealth and inequality. [...]
This is an important study as to some extent we are seeing the breakdown of the social contract between capital and labour whereby the 'masses' accepted the inequities of the capitalist system in return for a reasonable income and job security. The continued existence of the social state depends on a renewal of public confidence and the insight gained into the perceptions of the public - and therefore the possible policy responses of the political left - will help in understanding how this can be achieved.