A SHORT HISTORY OF CAPITALISM “The Thatcher Era” by Jeffrey E. Garten YALE School of Management November 5, 2008

FIVE ERAS 1890’s – 1914 1914 – 1945 1945 – 1980’s 1980’s – 2008 2008 - ?

GOLDEN AGE OF CAPITALISM: 1890’s – 1914 Quantum increase in trade Quantum increase in capital flows Era of modern communications Huge waves of immigration

Breakdown of political order Communism and fascism THE ERA OF STATISM: 1914-1980’s Breakdown of political order Communism and fascism Protectionism and the 1930’s

Bretton Woods Institutions New Deal, Great Society in U.S. THE ERA OF STATISM: 1914-1980’s World War II John Maynard Keynes Bretton Woods Institutions New Deal, Great Society in U.S.

Trade unionism in Europe Commanding heights THE ERA OF STATISM: 1914-1980’s Socialism in Europe Trade unionism in Europe Commanding heights

THE RISE OF MARGARET THATCHER Rise of the politician Political philosophy Britain on the eve of the Thatcher election

THE THATCHER REVOLUTION Individualism Market Government

THE THATCHER REVOLUTION Fiscal policies Privatization Battle with unions

THE THATCHER REVOLUTION Cold war – global political context Religious fervor – moral dimension Politics as conflict

Intellectual dominance of ideas GLOBAL IMPACT Reaganism Former Soviet Union Developing countries Intellectual dominance of ideas

The desire for more regulation 2008 – THE END OF AN ERA The financial crash of 2008 The desire for more regulation The feeling that materialism and consumption got out of hand The need for more balance between finance and real production

Summit meeting November 15, 2008 THE NEXT CAPITALISM What’s different now? More power centers, more views, more voices Green revolution 1980’s – 2008 New global institutions Summit meeting November 15, 2008

A SHORT HISTORY OF CAPITALISM “The Thatcher Era” by Jeffrey E. Garten YALE School of Management November 5, 2008