English Language and English Language and Culture for BusinessCulture for Business

Dr. Peter CullenDr. Peter Cullen

Module IIModule II

The History of British CultureThe History of British Culture

What is Culture?What is Culture?

�� M. Arnold M. Arnold (1869)(1869): : Culture from above Culture from above –– learning the canon to learning the canon to

improve society and avoid the anarchy of improve society and avoid the anarchy of ““popular culturepopular culture””..

�� R. Williams R. Williams (1960)(1960): : Culture = lifestyle expressing certain Culture = lifestyle expressing certain

significance and value ascribe not only to art and significance and value ascribe not only to art and ““high culturehigh culture””, ,

but also to institutions and everyday behaviour.but also to institutions and everyday behaviour.

�� NOTE: NOTE: definitions of culture are motivated by social definitions of culture are motivated by social

factors.factors.

WHICH SOCIAL FACTORS ARE IMPORTANT IN ITALY?WHICH SOCIAL FACTORS ARE IMPORTANT IN ITALY?

WHICH SOCIAL FACTORS HAVE BEEN IMPORTANT IN WHICH SOCIAL FACTORS HAVE BEEN IMPORTANT IN

BRITAIN?BRITAIN?

What is Culture?What is Culture?

�� Learning culture:Learning culture: Pierre Bourdieu and Pierre Bourdieu and fieldfield, , habitus, doxahabitus, doxa

FieldField:: the arena of social interaction the arena of social interaction –– verticle verticle and horizontal and horizontal –– constituted by the constituted by the relational differences of social agents.relational differences of social agents.

HabitusHabitus: : lasting aquired schemes of perception, lasting aquired schemes of perception, thought and action internally developed by thought and action internally developed by

social agents in reaction to objective social agents in reaction to objective conditions (i.e. of field).conditions (i.e. of field).

DoxaDoxa:: deepdeep--founded, unthought beliefs that founded, unthought beliefs that inform an agentinform an agent’’s actions in the s actions in the fieldfield. . Universal Universal

concepts. These propagate the structure of the concepts. These propagate the structure of the field.field.

Bourdieu and CultureBourdieu and Culture

�� HabitusHabitus reconciles the reconciles the objectiveobjective (field) and the (field) and the

subjective (doxa)subjective (doxa)..

�� Objective realities Objective realities are subjectively assimilated by the are subjectively assimilated by the

individual social agent, creating a subjective agreement individual social agent, creating a subjective agreement

about external social structures about external social structures –– field.field.

�� Key concept: Key concept: Culture is learned behaviour.Culture is learned behaviour.

Learned Behaviour in Britain Learned Behaviour in Britain ––1945 1945 -- 20072007

Major themes:Major themes:

the fall of Empirethe fall of Empire

AngloAnglo--American relationsAmerican relations

transition from industry to servicestransition from industry to services

immigrationimmigration

classclass

gendergender

racerace

tradition vs. innovationtradition vs. innovation

generationgeneration

legitimacylegitimacy

1945 1945 –– Bombed into DemocracyBombed into Democracyquote: J.B. Priestlyquote: J.B. Priestly

�� Massive warMassive war--time output had broken down class and time output had broken down class and gender relationships: 6,000,000 enlisted, 250,000 killedgender relationships: 6,000,000 enlisted, 250,000 killed

�� 1940:1940: Dunkirk evacuationDunkirk evacuation

375,000 BEF.375,000 BEF.

�� 1940 1940 -- ““Battle of BritainBattle of Britain””

1941:1941: RAF vs Luftwaffe.RAF vs Luftwaffe.

English cities English cities

heavily bombedheavily bombed

children evacuatedchildren evacuated

countryside.countryside.

�� 1941:1941: Atlantic Charter Atlantic Charter –– US entry only if Empire US entry only if Empire dismantled.dismantled.

1945 1945 -- Bombed into DemocracyBombed into Democracy

�� 19411941:: First First ““Keynesian budjet passed in Parliament =Keynesian budjet passed in Parliament =

commitment to fullcommitment to full--employment to keep the employment to keep the economy afloateconomy afloat

�� 1942:1942: Beveridge Report Beveridge Report –– ““cradle to gravecradle to grave”” state state assurance of welfare, NHS = Labour assurance of welfare, NHS = Labour committed to postcommitted to post--war social war social reconstruction.reconstruction.

�� 1945:1945: ChurchillChurchill’’s Conservative party considered s Conservative party considered patronising and outpatronising and out--dated (war heroism)dated (war heroism)

Conservatives negotiate an emergency loan Conservatives negotiate an emergency loan from the US government and hope that the USfrom the US government and hope that the US

will will ““view the world through British spectaclesview the world through British spectacles””..

War and Social ChangeWar and Social Change

�� Shift towards social importance of the working class.Shift towards social importance of the working class.

�� Labour (after Beveridge Rpt.) promotes Keynesian fiscal Labour (after Beveridge Rpt.) promotes Keynesian fiscal intervention, direct control of manpower, state control over intervention, direct control of manpower, state control over means of production = means of production = NHSNHS (1948), (1948), NationalisationNationalisation, power , power to to UnionsUnions..

�� Note: Rationing continued until 1954, as part of Note: Rationing continued until 1954, as part of reconstruction planning.reconstruction planning.

�� Hoggart, Williams, E.P. Thompson comeHoggart, Williams, E.P. Thompson come

from this collectivist experiencefrom this collectivist experience

= British intellectual socialism.= British intellectual socialism.

PostPost--War Cultural Studies in the War Cultural Studies in the UKUK

�� Emphasis onEmphasis on culture of labour culture of labour , not , not economy of laboureconomy of labour

�� This is a break with preThis is a break with pre--war concepts of class.war concepts of class.

�� Thompson and Hall Thompson and Hall are are working class.working class.

�� This movement promotes This movement promotes adult educationadult education as opposed to as opposed to elitist elitist university educationuniversity education..

Question: Question: WHAT IS WHAT IS CLASSCLASS IN BRITISH SOCIETY?IN BRITISH SOCIETY?

Problem: Problem: education from below vs. education from education from below vs. education from above.above.

Social Hierarchy: Class, Caste, Social Hierarchy: Class, Caste, Order, Rank, ???Order, Rank, ???

�� Caste Caste –– informed and structured by religion (i.e. India)informed and structured by religion (i.e. India)

�� Order Order –– informed and structured in monarchical/Imperial informed and structured in monarchical/Imperial societies (feudalism)societies (feudalism)

�� Rank Rank –– military hierarchy sometimes applied to social military hierarchy sometimes applied to social orderorder

�� Class Class –– social hierarchy related to the social hierarchy related to the ““means of means of productionproduction”” (Marx et. Al.)(Marx et. Al.)

Working Class and Culture: 1950Working Class and Culture: 1950’’ss

�� WarWar--time pop culture = cinema, dancingtime pop culture = cinema, dancing

�� Question: Question: rural England vs Industrial Englandrural England vs Industrial England

shift in mass cultural consumption toshift in mass cultural consumption to

the major cities: London, Birmingham,the major cities: London, Birmingham,

Manchester, Newcastle.Manchester, Newcastle.

�� The working class recognises itThe working class recognises it’’s own importance to thes own importance to the

country country –– cultural creation of the workingcultural creation of the working--class anticlass anti--hero.hero.

((i.e. i.e. Look Back in AngerLook Back in Anger and and The Loneliness of the Long Distance The Loneliness of the Long Distance

RunnerRunner) and the ) and the ““angry young manangry young man”” in the late 1950in the late 1950’’s.s.

�� The aristocracy is forced into business investment to The aristocracy is forced into business investment to preserve its wealth and standing preserve its wealth and standing –– BBC, British AirlinesBBC, British Airlines

Working Class YouthWorking Class Youth

�� Britain in the 1950Britain in the 1950’’s is grim (s is grim (rationing, social split rationing, social split

between working class, middle class, upper classbetween working class, middle class, upper class))

�� Factory work is grim Factory work is grim –– energy is supplied by coal energy is supplied by coal and emerging nuclear energy and emerging nuclear energy –– sparking CND sparking CND protestprotest

�� Economic growth in the late 1950Economic growth in the late 1950’’s undermined s undermined the Labour party = dissaffecting labour with itthe Labour party = dissaffecting labour with it’’s s leadershipleadership

�� Youth needed a form of self expression: musicYouth needed a form of self expression: music

Youth Culture 1958 Youth Culture 1958 -- 19681968

�� British youth turn to Black music and Black British youth turn to Black music and Black

hybrid music like Elvis.hybrid music like Elvis.

�� Teddy Boys = RockabillyTeddy Boys = Rockabilly

�� Rockabilly is inspired by American country and Rockabilly is inspired by American country and

blues (Johnny Cash, Dwayne Eddy, Carl Perkins, blues (Johnny Cash, Dwayne Eddy, Carl Perkins,

Little Richard) and interpreted in local working Little Richard) and interpreted in local working

class bands class bands

i.e. Crazy Cavan and the i.e. Crazy Cavan and the

Rhythm RockersRhythm Rockers

Youth Culture 1958 Youth Culture 1958 -- 19681968�� Mass media Mass media –– Radio and TV Radio and TV –– could only approach socially could only approach socially

acceptable bands acceptable bands –– like the Beatles and later the Rolling Stones.like the Beatles and later the Rolling Stones.

�� The Beatles were inspiredThe Beatles were inspired

by Chuck Berry and Roy by Chuck Berry and Roy

Orbison (rockabilly light)Orbison (rockabilly light)

Liverpool 1958Liverpool 1958

�� The Rolling Stones wereThe Rolling Stones were

inspired by Chuck Berryinspired by Chuck Berry

and Muddy Watersand Muddy Waters

(rock (rock –– blues)blues)

London 1962London 1962

Mods and RockersMods and Rockers

�� Angry young men Angry young men –– baby boomer rebellionbaby boomer rebellion

split on stylesplit on style

Rockers: Rockers: rural, manual labour, working class, rural, manual labour, working class, motorcycles (BSA and Triumph), motorcycles (BSA and Triumph), rockabilly, leather jacketsrockabilly, leather jackets

Mods: Mods: urban, pretensions of sophistication, urban, pretensions of sophistication, scooters, ska, R&B, early reggae.scooters, ska, R&B, early reggae.

�� The The ““Second Battle of HastingsSecond Battle of Hastings”” = 2 day Mods vs = 2 day Mods vs Rockers gang fight in Brighton (theyRockers gang fight in Brighton (they’’d all gone on d all gone on holiday there!)holiday there!)

The British Invasion 1964 The British Invasion 1964 -- 19671967

�� British Bands, particularly the Beatles and the British Bands, particularly the Beatles and the Rolling Stones become massive successes in the Rolling Stones become massive successes in the USUS

�� 11°° the Beatles on Feb 7, 1964. the Beatles on Feb 7, 1964. They went on the Ed They went on the Ed Sullivan show with the song Sullivan show with the song ““I Want to Hold Your HandI Want to Hold Your Hand””

�� Followed by Manfred Mann Followed by Manfred Mann (Do Wah Diddy Diddy)(Do Wah Diddy Diddy), The , The Animals Animals (House of the Rising Sun)(House of the Rising Sun), The Troggs , The Troggs (Wild (Wild

Thing)Thing), and Donovan , and Donovan (Sunshine Superman)(Sunshine Superman)

�� This gained British performers access to massive This gained British performers access to massive American markets American markets –– and becoming rock nand becoming rock n’’ rollroll

Conservative SuccessConservative Success

�� Growth in the 1950Growth in the 1950’’s was presided over by the s was presided over by the Tory government. Labour was lost.Tory government. Labour was lost.

BUTBUT

�� Growth in the UK was much slower than in Growth in the UK was much slower than in France, FDR, US, and JapanFrance, FDR, US, and Japan

�� The Suez Crisis (The Suez Crisis (1957 UK, French and Israeli attempt to 1957 UK, French and Israeli attempt to

block Suez nationalisation by Egypt) block Suez nationalisation by Egypt) left bitter taste for UK left bitter taste for UK foreign relationsforeign relations

�� Popular culture became decidedly Popular culture became decidedly ““antianti--establishmentestablishment”” in the 1960in the 1960’’ss

Education in Britain Education in Britain –– 19601960’’s and s and 19701970’’ss

�� Schools indicate classSchools indicate class

�� Accent indicates classAccent indicates class

�� Geography indicates classGeography indicates class

��

�� Popular culture after Popular culture after ’’6464--’’6767

became antibecame anti--classclass

Education in Britain Education in Britain –– 19601960’’s and s and 19701970’’ss

�� University indicated classUniversity indicated class

�� The fall of Empire meant anThe fall of Empire meant an

influx of immigrants from the influx of immigrants from the

Commonwealth (India, Pakistan, Africa)Commonwealth (India, Pakistan, Africa)

�� How to incorporate them in the British National How to incorporate them in the British National State?State?

�� How to deal with How to deal with aspiring aspiring working classes?working classes?

Richard Hoggart and the RedRichard Hoggart and the Red--BricksBricks

�� Born in Leeds 1918Born in Leeds 1918

�� AtAt Leicester (1959 Leicester (1959 –– 1962) 1962) *1957*1957

Birmingham (1962 Birmingham (1962 –– 1973) 1973) *1900*1900

London (Goldsmiths 1975 London (Goldsmiths 1975 --1983) 1983) *1836*1836 *1990*1990

�� Oxbridge (Ox. and Cam.) should Oxbridge (Ox. and Cam.) should notnot be the be the universal universal custodianscustodians of British cultureof British culture

�� Concerned that Concerned that ““popular culturepopular culture”” would become would become dede--valued by valued by ““mass culturemass culture”” imported from the imported from the US. Including mass mediaUS. Including mass media

Immigration and Enoch PowellImmigration and Enoch Powell

�� Enoch Powell conservative Minister of Health 1968 Tory gvEnoch Powell conservative Minister of Health 1968 Tory gv

�� Late Late ’’60s sees significant black immigration from former 60s sees significant black immigration from former

colonies and fears race problems as in the UScolonies and fears race problems as in the US

�� Powell gives speeches against LabourPowell gives speeches against Labour’’ss

introduction of the 1968 Race Relations Actintroduction of the 1968 Race Relations Act

citing Virgil that citing Virgil that ““the Tiber would run redthe Tiber would run red

with Bloodwith Blood”” if immigration was uncheckedif immigration was unchecked

�� Much of his protest was aimed at equalityMuch of his protest was aimed at equality

in housing applicationsin housing applications

Racism?Racism?

Raymond WilliamsRaymond Williams�� Born in Wales Born in Wales –– 19211921

�� Went to Cambridge with Eric Hobsbawm and became a communist Went to Cambridge with Eric Hobsbawm and became a communist –– graduating in 1946graduating in 1946

�� Was a tutor in Adult Education at OxfordWas a tutor in Adult Education at Oxford

�� Returned to Cambridge in 1961 and was Professor from 1974 Returned to Cambridge in 1961 and was Professor from 1974 ––19831983

�� In In Culture and Society Culture and Society (1958) he argues that the notion of (1958) he argues that the notion of ““cultureculture”” developed in response to the industrial revolutiondeveloped in response to the industrial revolution

““culture is ordinaryculture is ordinary””

�� In In The Long RevolutionThe Long Revolution (1961) he argues that culture is both (1961) he argues that culture is both traditional and creative at the same time traditional and creative at the same time –– zeitgeistzeitgeist

�� Maintains that Mass Media allows greater possibility for culturaMaintains that Mass Media allows greater possibility for cultural l learning, criticising detractors as learning, criticising detractors as ““too selectivetoo selective””. Cultural learning . Cultural learning can create consensuscan create consensus

E.P. ThompsonE.P. Thompson�� Born in Oxford in 1924Born in Oxford in 1924

�� Educated at Cambridge where he founded the Communist Party Educated at Cambridge where he founded the Communist Party Historians Group with Hobsbawm and Hill in 1946 Historians Group with Hobsbawm and Hill in 1946 –– founding founding Past Past and Presentand Present in 1952in 1952

�� Taught at LeedsTaught at Leeds

�� Wrote Wrote The Making of the English Working ClassThe Making of the English Working Class (1963) as a social (1963) as a social history of the development of working class culture and identityhistory of the development of working class culture and identityfrom the 1700from the 1700’’s on.s on.

�� He concludes that He concludes that classclass is not a is not a ““thingthing”” or a or a ““categorycategory””, but rather , but rather a process in which real people live in real contextsa process in which real people live in real contexts

�� He wants to tell the history of the He wants to tell the history of the ““forgotten heroesforgotten heroes”” of English of English industrial development industrial development –– ““everyday peopleeveryday people””

�� He holds, however, that culture creates conflictHe holds, however, that culture creates conflict

The New LeftThe New Left�� Hoggart, Williams, Thompson, Hobsbawm, Hill, Perry Anderson, Hoggart, Williams, Thompson, Hobsbawm, Hill, Perry Anderson,

and Eric Wolfe form the and Eric Wolfe form the ““New LeftNew Left”” –– British postBritish post--Marxist Marxist members of the Communist Partymembers of the Communist Party

Founded the Founded the New ReasonerNew Reasoner (1957) to discuss leftist ideas (1957) to discuss leftist ideas thatthat

did not did not agree with Soviet social practices agree with Soviet social practices –– they are the they are the dissidentdissident

left protesting the Soviet invasion of Hungary and Stalinismleft protesting the Soviet invasion of Hungary and Stalinism

The The New ReasonerNew Reasoner becomes becomes The New Left ReviewThe New Left Review in 1960, in 1960, under the editorship of Perry Anderson under the editorship of Perry Anderson –– Thompson leaves the Thompson leaves the group and allies himself with Williams in the late 1960group and allies himself with Williams in the late 1960’’ss

�� = break between the = break between the ““First New LeftFirst New Left”” (Thompson and Williams) (Thompson and Williams) and the later New Left of Anderson (focused on the aristocratic and the later New Left of Anderson (focused on the aristocratic trajectory of English cultural development)trajectory of English cultural development)

�� Influenced undergraduates to criticise and contrast the Influenced undergraduates to criticise and contrast the intellectual authority of traditional education intellectual authority of traditional education –– including including institutions institutions

1968 1968 –– 1980 Cultural Revolution?1980 Cultural Revolution?

�� 1967 1967 –– BritainBritain’’s application to join the EEC is vetoed by Fr. Pres. s application to join the EEC is vetoed by Fr. Pres. De Gaulle because the Sterling De Gaulle because the Sterling ““served as a reserve currency, and served as a reserve currency, and British consumption of cheap European products made it British consumption of cheap European products made it incompatible with EEC membershipincompatible with EEC membership

�� Harold WilsonHarold Wilson’’s Labour government faced: retreat in Rhodesia, s Labour government faced: retreat in Rhodesia, massive trade deficit, and dockworker strikes in Liverpool and massive trade deficit, and dockworker strikes in Liverpool and London = economic confidence failed and the Sterling was deLondon = economic confidence failed and the Sterling was de--valuedvalued

�� Poor Labour Gov.t must now negotiate with the Trade Unions the Poor Labour Gov.t must now negotiate with the Trade Unions the party was originally designed to supportparty was originally designed to support

�� 19701970’’s = stagflation. Transition period in technology and business s = stagflation. Transition period in technology and business process. Dockland strikes (Miners strikes (1973), nationalism inprocess. Dockland strikes (Miners strikes (1973), nationalism inIreland and Scotland, Ireland and Scotland,

�� 19801980’’s Thatcher and Reagan solidify s Thatcher and Reagan solidify ““free marketfree market”” economics and economics and undermine Labour politics undermine Labour politics –– the working class becomes the working class becomes conservativeconservative

1980 1980 -- 20072007�� Various agents in society now apply Hoggart and WilliamVarious agents in society now apply Hoggart and William’’s s

concept of concept of ““cultureculture””: i.e. Business culture, Sports culture, Student : i.e. Business culture, Sports culture, Student CultureCulture

�� Cultural StudiesCultural Studies provided the basis for anglophone understanding provided the basis for anglophone understanding of foreign culture, global culture, and world systems (although of foreign culture, global culture, and world systems (although this was driven more by the French and Americans and received this was driven more by the French and Americans and received badly by the British left academics)badly by the British left academics)

�� Mass Media provides instruments that make cultural Mass Media provides instruments that make cultural understanding central to successful businessunderstanding central to successful business

�� Old Old ““class boundariesclass boundaries”” are deare de--politicised as the economy shifts politicised as the economy shifts away from protectionsim. away from protectionsim. ““LeftLeft”” and and ““RightRight”” (Tory and Labour) (Tory and Labour) definitions become muddied.definitions become muddied.

�� ““ThatcherismThatcherism”” rere--aligns British society in the 1980aligns British society in the 1980’’s. Greater s. Greater social risk and greater economic gain. Fully assimilated in the social risk and greater economic gain. Fully assimilated in the 19901990’’s current decades current decade

Structuralism and PostStructuralism and Post--structuralismstructuralism

�� Structuralism = analytical interest in the structures of Structuralism = analytical interest in the structures of society society –– well adapted to socialism and communismwell adapted to socialism and communism

�� Post Post –– structuralism = analytical interest in behaviour and structuralism = analytical interest in behaviour and psychology of social agents psychology of social agents –– more flexible application more flexible application ––growing out of sociological trend toward growing out of sociological trend toward ““functionalismfunctionalism””Talcot Parsons)Talcot Parsons)

�� Foucault, Derrida Foucault, Derrida –– deconstructionism = the breaking up of deconstructionism = the breaking up of a text into its culturally informed constituent parts, a text into its culturally informed constituent parts, therefore leaving each part and its contribution open to therefore leaving each part and its contribution open to interpretation: emphasis on dichotomies and discourseinterpretation: emphasis on dichotomies and discourse

�� Tends to be antiTends to be anti--empirical and vague.empirical and vague.

Margaret Thatcher Margaret Thatcher –– ““The Iron LadyThe Iron Lady””

�� Conservative Party leader since 11 Feb 1975.Conservative Party leader since 11 Feb 1975.

�� 19 January19 January 19761976, she made a scathing attack on the Soviet Union, , she made a scathing attack on the Soviet Union, stating:stating:

The Russians are bent on world dominance, and they are rapidly aThe Russians are bent on world dominance, and they are rapidly acquiring the cquiring the means to become the most powerful imperial nation the world has means to become the most powerful imperial nation the world has seen. The men in seen. The men in the Soviet Politburo do not have to worry about the ebb and flowthe Soviet Politburo do not have to worry about the ebb and flow of public opinion. of public opinion. They put guns before butter, while we put just about everything They put guns before butter, while we put just about everything before guns.before guns.

�� Became PM in May 1979 after Became PM in May 1979 after ““the winter ofthe winter of

discontentdiscontent”” –– labour unrest and shortages.labour unrest and shortages.

�� ““ThatcherismThatcherism”” –– reduce the role of thereduce the role of the

state in the economy = increase intereststate in the economy = increase interest

rates to slow money supply (curb inflation)rates to slow money supply (curb inflation)

use indirect tax (VAT) use indirect tax (VAT) –– hurting businesshurting business

and industry and pushing up unemploymentand industry and pushing up unemployment

BUT centralise power in the hands of the BUT centralise power in the hands of the

national government national government –– and personally to and personally to

Mrs. ThatcherMrs. Thatcher

Thatcherism and the 1980Thatcherism and the 1980’’ss�� ThatcherThatcher’’s monetarism and foreign policy usually fit well s monetarism and foreign policy usually fit well

with US Pres. Ronald Reaganwith US Pres. Ronald Reagan’’s ideas of the free market s ideas of the free market world.world.

�� Except FalklandExcept Falkland’’s war (1982) which saw Britain enforce their s war (1982) which saw Britain enforce their sovereignty in the Falkland Islands (claimed by Argentina)sovereignty in the Falkland Islands (claimed by Argentina)

�� NUM NUM (National Union of Mineworkers)(National Union of Mineworkers)

launched strikes in 1983 after Thatcherlaunched strikes in 1983 after Thatcher’’ss

rere--election election –– they were badly managedthey were badly managed

and over the year broke into splinter groupsand over the year broke into splinter groups

The Tory govt. closed all but 15 of the coalThe Tory govt. closed all but 15 of the coal

mines in the UK (which were sold in 1994)mines in the UK (which were sold in 1994)

�� 19871987--89 fought against inclusion in the89 fought against inclusion in the

EEU on principle of EEU on principle of ““small govt.small govt.””

�� Supported GorbachevSupported Gorbachev’’s reforms in USSR and convinceds reforms in USSR and convinced

Ronald Reagan that he was Ronald Reagan that he was ““someone we can dosomeone we can do

business withbusiness with””..

The Business of ThatcherismThe Business of Thatcherism

�� AntiAnti--corporatist/statist moodcorporatist/statist mood in the 1980in the 1980’’s = do s = do away with away with ““monolithic bureaucracymonolithic bureaucracy””

�� Nigel Lawson Nigel Lawson –– Chancellor of the Exchequer introduces Chancellor of the Exchequer introduces significant cuts in public spending and taxes to create significant cuts in public spending and taxes to create incentives for investmentincentives for investment

�� The social gap widensThe social gap widens: 1985 : 1985 –– richest 6% of pop. richest 6% of pop. Holds 25% of GDPHolds 25% of GDP

poorest 20% holdspoorest 20% holds

++--5% of GDP5% of GDP

�� Global incentives to Global incentives to ““multinationalisemultinationalise”” helped the economy helped the economy grow up to 1987 (labour and production are moved overgrow up to 1987 (labour and production are moved over--seas in many cases) with annual growth at +seas in many cases) with annual growth at +--4% and 4% and falling inflationfalling inflation

The Business of ThatchersimThe Business of Thatchersim�� North Sea oil bolsters the balance of paymentsNorth Sea oil bolsters the balance of payments

�� Unemployment is high, but is not a political issueUnemployment is high, but is not a political issue

�� Nigel LawsonNigel Lawson’’s 1987 budget, however, ignores long term stress on s 1987 budget, however, ignores long term stress on the balance of paymentsthe balance of payments

taxes hit sales and corporate returns taxes hit sales and corporate returns –– not thenot the

individual = great incentive for private gainindividual = great incentive for private gain

�� ThatcherThatcher’’s government cuts the power of Local Governments government cuts the power of Local Government

(Local Government Act 1985) thereby removing socialist (Local Government Act 1985) thereby removing socialist oppostition at the city leveloppostition at the city level

�� Media and arts institutions were stocked with party friends and Media and arts institutions were stocked with party friends and sympathisers (Rupert Murdoch in the press)sympathisers (Rupert Murdoch in the press)

�� University funding was seriously cut and universities were placeUniversity funding was seriously cut and universities were placed d on shorton short--term profit basis for reviewterm profit basis for review

�� Watchword = wealth generationWatchword = wealth generation

19871987

�� October 1987 = massive stock market crash, killing 24% of October 1987 = massive stock market crash, killing 24% of

stock value in 1 day.stock value in 1 day.

�� BUT Nigel LawsonBUT Nigel Lawson’’s March 1988 budget allowed only two s March 1988 budget allowed only two

tax brackets 40% for the rich and 25% for all other income tax brackets 40% for the rich and 25% for all other income

brackets = private bleed on business revenue and no state brackets = private bleed on business revenue and no state

support. Consumerism and consumer credit WAY UP.support. Consumerism and consumer credit WAY UP.

�� 1987 1987 –– 1989 = unemployment up AND inflation up to 8.9%1989 = unemployment up AND inflation up to 8.9%

�� Thatcherite monetarism had problems.Thatcherite monetarism had problems.

New LabourNew Labour

�� 1989 1989 –– Labour distanced from the trade unions and Labour distanced from the trade unions and

nationalisation.nationalisation.

�� They applied a policy of They applied a policy of ““new realismnew realism””: favoured the : favoured the

consumer, curbed union power, promised law and orderconsumer, curbed union power, promised law and order

-- by 1988 +20% of adults owned sharesby 1988 +20% of adults owned shares

-- by 1990 +66% of residents owned their homeby 1990 +66% of residents owned their home

�� Labour adapted to represent the property ownerLabour adapted to represent the property owner

John Major Tory PM 1990John Major Tory PM 1990--9797

Tony Blair Labour PM 1997Tony Blair Labour PM 1997--20072007

The 1990The 1990’’s s -- 19971997

�� Tory commitment to American alliance vs. IraqTory commitment to American alliance vs. Iraq

(Major has been on the Carlyle groups European Advisory Board si(Major has been on the Carlyle groups European Advisory Board since nce

1998 1998 –– after his terms in office)after his terms in office)

�� Treatment of domestic issues =Treatment of domestic issues =

-- 1993 1993 ““Back to BasicsBack to Basics””, affermation of law, order, , affermation of law, order,

education education –– interpreted as interpreted as ““family valuesfamily values”” and and

defaced in the wake of Tory minister scandalsdefaced in the wake of Tory minister scandals

-- Britain exits the Exchange Rate Mechanism and loses Britain exits the Exchange Rate Mechanism and loses

more than a billion more than a billion ££ trying to prop up the trying to prop up the ££n n (caused by (caused by

currency speculators unfavourable to the currency speculators unfavourable to the ££/$ rate)/$ rate)

-- Beginning of talks with Gerry Adams and the IRA Beginning of talks with Gerry Adams and the IRA

disarmamentdisarmament

1997 1997 -- 20072007

�� Tories still infighting about EU and leadershipTories still infighting about EU and leadership

�� Blair moves Labour to proBlair moves Labour to pro--market policies and is market policies and is ““Tough on Tough on CrimeCrime””

�� Wins the May 1997 election by a landslideWins the May 1997 election by a landslide

�� Increased public spending in health and Increased public spending in health and

education, but enacted marketeducation, but enacted market--orientedoriented

reforms in management of themreforms in management of them

�� Supported devolution in Scotland and WalesSupported devolution in Scotland and Wales

�� Helped create peace talks in IrelandHelped create peace talks in Ireland

�� Staunch supporter of BushStaunch supporter of Bush’’s post 9/11s post 9/11

““War on TerrorWar on Terror””

TOOK LABOUR TO THE CENTRETOOK LABOUR TO THE CENTRE

Mr. BrownMr. Brown

�� 1997 1997 -- 2007: Chancellor of the Exchequer2007: Chancellor of the Exchequer

�� July 24, 2007 July 24, 2007 –– became Labour Party leaderbecame Labour Party leader

�� July 27, 2007 July 27, 2007 –– became PM of GB and NI became PM of GB and NI

�� As chancellor: As chancellor:

granted independence to the Bank of granted independence to the Bank of

England in monetary policy (interest rates)England in monetary policy (interest rates)

33% to 28% Tax cut for large business33% to 28% Tax cut for large business

24% to 19% cut for small24% to 19% cut for small--medium businessmedium business

expanded govt. spendingexpanded govt. spending

overall growth in UK overall growth in UK –– 2.7%2.7%

(in Europe growth = 2.1%)(in Europe growth = 2.1%)

Unemployment fell from 7% to 5.5%Unemployment fell from 7% to 5.5%

In Europe it is 8.1%)In Europe it is 8.1%)

Mr. BrownMr. Brown�� Growth Brown states that his Chancellorship had seen the longestGrowth Brown states that his Chancellorship had seen the longest

period of sustained economic growth in the period of sustained economic growth in the history of the United history of the United KingdomKingdom

�� AntiAnti--Poverty The Poverty The Centre for Policy StudiesCentre for Policy Studies found that the poorest found that the poorest fifth of households, which accounted for 6.8% of all taxes in 19fifth of households, which accounted for 6.8% of all taxes in 199696--7, accounted for 6.9% of all taxes paid in 20047, accounted for 6.9% of all taxes paid in 2004--5. Meanwhile, their 5. Meanwhile, their share of state benefit payouts dropped from 28.1% to 27.1% over share of state benefit payouts dropped from 28.1% to 27.1% over the same periodthe same period

�� Tax According to the Tax According to the OECDOECD UK taxation has increased from a UK taxation has increased from a 39.3% share of 39.3% share of gross domestic productgross domestic product in 1997 to 42.4% in 2006, in 1997 to 42.4% in 2006, going to a higher level than Germany.going to a higher level than Germany.[48][48] This increase has This increase has mainly been attributed to active government policy, and not simpmainly been attributed to active government policy, and not simply ly to the growing economy. to the growing economy.

�� Pensions The Conservatives have accused Brown of imposing Pensions The Conservatives have accused Brown of imposing ""stealth taxesstealth taxes". A commonly reported example resulted in 1997 ". A commonly reported example resulted in 1997 from a technical change in the way from a technical change in the way corporation taxcorporation tax is collected, the is collected, the indirect effect of which was for the indirect effect of which was for the dividendsdividends on on stockstock investments investments held within held within pensionspensions to be taxed, thus lowering pension returns to be taxed, thus lowering pension returns and contributing to the demise of some pension funds. The and contributing to the demise of some pension funds. The Treasury contend that this tax change was crucial to longTreasury contend that this tax change was crucial to long--term term economic growth. economic growth.

Mr. BrownMr. Brown�� Higher educationHigher education In 2000, Brown started a political row In 2000, Brown started a political row

about about higher educationhigher education (referred to as the (referred to as the Laura Spence Laura Spence AffairAffair) when he accused the ) when he accused the University of OxfordUniversity of Oxford of of elitismelitismin its admissions procedures, describing its decision not to in its admissions procedures, describing its decision not to offer a place to offer a place to state schoolstate school pupil Laura Spence as pupil Laura Spence as "absolutely outrageous". "absolutely outrageous". Lord JenkinsLord Jenkins, then Oxford , then Oxford ChancellorChancellor, said "nearly every fact he used was false." , said "nearly every fact he used was false."

�� AntiAnti--racism and popular cultureracism and popular culture During a diplomatic During a diplomatic visit to visit to IndiaIndia in January 2007, Brown responded to in January 2007, Brown responded to questions concerning perceived questions concerning perceived racismracism and and bullyingbullying against against BollywoodBollywood actress actress Shilpa ShettyShilpa Shetty on the British on the British reality TVreality TVshow show Celebrity Big BrotherCelebrity Big Brother saying, "There is a lot of support saying, "There is a lot of support for Shilpa. It is pretty clear we are getting the message for Shilpa. It is pretty clear we are getting the message across. Britain is a nation of tolerance and fairness." He across. Britain is a nation of tolerance and fairness." He later said the debate showed Britain wanted to be "defined later said the debate showed Britain wanted to be "defined by being a tolerant, fair and decent country."by being a tolerant, fair and decent country."

Britain in Iraq Britain in Iraq –– 2007 2007

�� Gordon Brown: Gordon Brown:

"We will not allow people to separate us from the United "We will not allow people to separate us from the United

States of America in dealing with the common challenges States of America in dealing with the common challenges

that we face around the world. I think people have got to that we face around the world. I think people have got to

remember that the remember that the relationship between Britain and relationship between Britain and

AmericaAmerica and between a and between a British prime ministerBritish prime minister and an and an

American presidentAmerican president is built on the things that we share, the is built on the things that we share, the

same enduring values about the importance of same enduring values about the importance of libertyliberty, ,

opportunity, the dignity of the individual. I will continue to opportunity, the dignity of the individual. I will continue to

work, as Tony Blair did, very closely with the work, as Tony Blair did, very closely with the American American

administrationadministration." ."