Skip to main content Accessibility help
×
Hostname: page-component-848d4c4894-8bljj Total loading time: 0 Render date: 2024-06-25T17:31:49.921Z Has data issue: false hasContentIssue false

1 - Introduction: the Crisis and Austerity Neoliberalism

Published online by Cambridge University Press:  10 March 2021

David Etherington
Affiliation:
Staffordshire University
Get access

Summary

But in banking, as in capitalism in general, it's one rule for the elite and another for the rest of us. On the day Deutsche Bank began making thousands of employees redundant, some managing directors at the company's office in the City of London were being fitted for suits that cost at least £1,200. Tailors from Fielding & Nicholson, an upmarket tailor, were pictured walking out of the bank's UK office with suit bags. Ian Fielding-Calcutt, the tailor's founder, and Alex Riley were there to fit suits for senior managers in spite of plans to cut 18,000 jobs worldwide. Deutsche's chief executive, Christian Sewing, has repeatedly said how much he regretted the decision to scrap a fifth of his global workforce. But it did not stop him paying out €50m in golden handshakes to top executives since 2018. (Roberts, 2019)

Estimates of the size of the UK bank bailout range between £289 billion and £550 billion – or nearly £10,000 for every British resident – exceeding the £203 billion of tax that the sector paid in the five years up to 2006–2007 … by the end of 2009 the total value of bailouts in the US, UK and euro area equalled $14 trillion, or almost a quarter of the world's gross domestic product. (Sayer, 2016: 229)

We know that there's appetite in the Conservative party for a bonfire of workers’ rights. (O’Grady, 2018)

Welfare reform employment relations and labour Discipline

The 2008 financial crisis and the near collapse of the financial system brought about a response from nearly all developed and developing capitalist countries that is referred to as austerity; this is generally viewed as a strategy for cutting back public expenditure in order to reduce public debts. This was based on thinking by the dominant elites that balancing finances was a crucial factor in bringing about further growth. Sacrifices had to be made for the greater good. We are now living in an age of austerity. While the term austerity is generally used to mean public expenditure cuts, as will be argued in this book, there is more to it. Richard Seymour defines austerity as comprising several elements (Seymour, 2014: 3–4). First, it is focused on reducing government budget deficits through a combination of public spending cuts and usually regressive tax hikes.

Type
Chapter
Information
Austerity, Welfare and Work
Exploring Politics, Geographies and Inequalities
, pp. 1 - 18
Publisher: Bristol University Press
Print publication year: 2020

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×