Skip to main content

Chavs II

Following on from yesterday’s post, I have another criticism of Jones basic thesis that the demonization of the working class is due to deindustrialisation and Margaret Thatcher.  In my opinion, Jones ignores the long-term evolution of the working class.  Why were the working class enfranchised in the first place?  Why did democratic governments redistribute wealth from the rich to the poor?  Why have the working class been under attack?  Why have the working class been effectively disenfranchised?

One possible explanation provided by Hickson and Thompson goes as follows: the working classes were enfranchised as they were required to defend the country in the era of mass warfare and large citizen armies.  The enfranchisement of the working classes in Britain begins in the late nineteenth century, and coincides with the rise of Imperial Germany.  It is completed in the aftermath of World War I, and between 1918 and 1946 large-scale redistribution occurs.  This was a simply a transfer from those who had benefited from the sacrifices of working-class men and women. 

However, the rise of high-technology and nuclear warfare means that nations no longer need mass-citizen armies for their defence.  Consequently, the rich no longer need or care about the working class.  The demonization of the working class highlighted by Jones may simply be one manifestation of this phenomenon.

Popular posts from this blog

The CEO: The Rise and Fall of Britain's Captains of Industry

Michael Aldous and I had our book The CEO: The Rise and Fall of Britain's Captains of Industry published a few weeks ago. You can find out more about it and buy it at Cambridge University Press's website . It is also available at Amazon , Waterstones , and Barnes & Noble .  The CEO has already been reviewed in The Sunday Times , The Observer and Financial Times .

How Valuable Are Connections?

Daron Acemoglu, Simon Johnson, Amir Kermani, James Kwak and Todd Mitton have written a paper on whether firms connected to Timothy Geithner benefited from these connections. They do so by looking at how stocks of these firms reacted to the announcement that he was a nominee for Treasury Secretary in November 2008. They find that there were large abnormal returns for connected firms. Below is the paper's abstract and the full paper is available here . The announcement of Timothy Geithner as nominee for Treasury Secretary in November 2008 produced a cumulative abnormal return for financial firms with which he had a connection. This return was about 6% after the first full day of trading and about 12% after ten trading days. There were subsequently abnormal negative returns for connected firms when news broke that Geithner's confirmation might be derailed by tax issues. Excess returns for connected firms may reflect the perceived impact of relying on the advice of a small ne...

The Railway Mania

My colleague and former PhD student Gareth Campbell has created a website about the British Railway Mania - click here . This episode has been described by the Economist as probably the greatest bubble in human history. Gareth's website provides background on the Mania and posits some explanations for the 'bubble'. In his explanation of why the bubble happened, Gareth places a lot of emphasis on investor myopia regarding future dividends and uncalled capital. His study of investors during the episode does not support the view that this episode was fuelled by naive and irrational investors.