The Consumer, Credit and Neoliberalism

Governing the Modern Economy

By Christopher Payne

© 2012 – Routledge

228 pages | 10 B/W Illus.

Purchasing Options:
Paperback: 9781138807792
pub: 2014-06-23
US Dollars$54.95
Hardback: 9780415680110
pub: 2011-12-13
US Dollars$150.00

About the Book

This book is an investigation into the economic policy formulation and practice of neoliberalism in Britain from the 1950s through to the financial crisis and economic downturn that began in 2007-8. It demonstrates that influential economists, such as F.A. Hayek and Milton Friedman, authors at key British think tanks such as the Institute of Economic Affairs and the Centre for Policy Studies, and important political figures of the Thatcher and New Labour governments shared a similar conception of the consumer.

For neoliberals, the idea that consumers were weak in the face of businesses and large corporations was almost offensive. Instead, consumers were imagined to be sovereign agents in the economy, whose consumption decisions played a central role in the construction of their human capital and in the enabling of their aspirations. Consumption, just like production, came to be viewed as an enterprising and entrepreneurial activity. Consequently, from the early 1980s until the present day, it was felt necessary that banks should have the freedom to meet the borrowing needs of consumers. Credit rationing would be a thing of the past. Just like businesses, consumers and households could use debt to expand their stock of personal assets.

By utilizing the method of French philosopher Michel Foucault this book provides an original analysis of the policy ideas and political speeches of key figures in the New Right, in government and at the Bank of England. And it addresses the key question as to why policy-makers both in Britain and the United States did little or nothing to stem rising consumer and household indebtedness, instead always choosing to see increasing house prices and homeownership as a positive to be encouraged.

Table of Contents

1. Introduction: Neoliberalism and Governmentality 2. Constructing the Consumer 3. Diagnosing the British Economy 4. How to Govern the Economy 5. Governing for the Consumer 6. Misidentification and Crisis 7. The American Sub-Prime Homeowner Consumer 8. Conclusion: Problematising the Consumer

About the Author

Christopher Payne is currently a senior economist at Bloomberg Government in Washington D.C., USA.

About the Series

Routledge Frontiers of Political Economy

In recent years, there has been widespread criticism of mainstream economics. This has taken many forms, from methodological critiques of its excessive formalism, to concern about its failure to connect with many of the most pressing social issues. This series provides a forum for research which is developing alternative forms of economic analysis. Reclaiming the traditional 'political economy' title, it refrains from emphasising any single school of thought, but instead attempts to foster greater diversity within economics.

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Subject Categories

BISAC Subject Codes/Headings:
BUSINESS & ECONOMICS / Consumer Behavior
BUSINESS & ECONOMICS / Economic History
HISTORY / Europe / Great Britain
HISTORY / Modern / 20th Century
POLITICAL SCIENCE / Public Policy / Economic Policy