1. Governing the British Economy What does this mean? What does this mean? The whole range of economic phenomena relating to production of goods and services The whole range of economic phenomena relating to production of goods and services Growth, stability (price, currency), unemployment, distribution Growth, stability (price, currency), unemployment, distribution Policy and implementation Policy and implementation Power and Constraints Power and Constraints Identifying success, rather than luck Identifying success, rather than luck 'Riding the economic cycle' 'Riding the economic cycle' 'Puzzling' and learning through making policy (Hall) 'Puzzling' and learning through making policy (Hall)

2. Two cases Heath Heath In 1974, the Prime Minister called an election asking "Who governs Britain?" They answered "Not you, Ted", albeit narrowly. The Conservatives polled more votes than Labour but held fewer seats. (BBC news) In 1974, the Prime Minister called an election asking "Who governs Britain?" They answered "Not you, Ted", albeit narrowly. The Conservatives polled more votes than Labour but held fewer seats. (BBC news) Gordon Brown's confusing move Gordon Brown's confusing move Taking away his own power? Taking away his own power?

3. Frameworks Power and Constraints Power and Constraints Ideas, Institutions, interests (3i) Ideas, Institutions, interests (3i) Hall's model (see later) Hall's model (see later)

4. Power and Constraints Power Power Hall claims the state has unrivalled power in making economic policy Hall claims the state has unrivalled power in making economic policy cf. the mechanistic model cf. the mechanistic model Howell contradicts this suggesting power moved away from state: down to firms and out to the international arena Howell contradicts this suggesting power moved away from state: down to firms and out to the international arena

5. Power and constraints II Constraints Constraints Ideological Ideological Unions Unions Special position: private workers, public workers, represent the most vulnerable to economic failure. Political but not governing Special position: private workers, public workers, represent the most vulnerable to economic failure. Political but not governing Institutions Institutions Global Economy – EU Global Economy – EU 'The model of capitalism' 'The model of capitalism' Inherited traditions Inherited traditions

6. The three I model Three different ways to explain policy change Three different ways to explain policy change Ideas Ideas Including, but not restricted to, ideologies Including, but not restricted to, ideologies Institutions Institutions Graham suggests that the highly centralised executive power in the UK was key in... Graham suggests that the highly centralised executive power in the UK was key in... King and Wood – models of capitalism King and Wood – models of capitalism Interests Interests

7. Hall's analysis Politicians have values Politicians have values From these they set their targets or goals From these they set their targets or goals Then they make choices to achieve them Then they make choices to achieve them There is a hierarchy of possible changes: There is a hierarchy of possible changes: Change the levels of a chosen instrument Change the levels of a chosen instrument Change the chosen instrument Change the chosen instrument Paradigm shift affecting all values, goals, instruments and levels Paradigm shift affecting all values, goals, instruments and levels

8. Interlude: the story of British Economic policy The post-war consensus. 'Butskillism' and Mr JM Keynes. Nationalisation The post-war consensus. 'Butskillism' and Mr JM Keynes. Nationalisation Wilson: Macmillan's 'You've never had it so good' is dead, Devaluation struggle, Beer and sandwiches at Number 10 Wilson: Macmillan's 'You've never had it so good' is dead, Devaluation struggle, Beer and sandwiches at Number 10 Heath, Wilson and Callaghan: Failures on all fronts and especially income policies and unions. 'Cap in hand' to the IMF. Culminates in 'the winter of discontent': several thousands of workers, causing bodies not to be buried, etc Heath, Wilson and Callaghan: Failures on all fronts and especially income policies and unions. 'Cap in hand' to the IMF. Culminates in 'the winter of discontent': several thousands of workers, causing bodies not to be buried, etc

9. Interlude II: the story of British Economic policy Thatcherism I: a bright new dawn: no more 'tax and spend'. The end of Keynes? Privatisation Thatcherism I: a bright new dawn: no more 'tax and spend'. The end of Keynes? Privatisation Thatcherism II: a terrible nightmare – Boom and Bust. Finance Ministers trodden underfoot. Armies of unemployed. Thatcherism II: a terrible nightmare – Boom and Bust. Finance Ministers trodden underfoot. Armies of unemployed. Prudent Gordon: Labour as the 'new tories': 'no more boom and bust', 'the golden rule', back to full employment? Prudent Gordon: Labour as the 'new tories': 'no more boom and bust', 'the golden rule', back to full employment? But where is Blair? But where is Blair?

10. Hall Revisited Hall’s is a limited analysis: government, even if central, still has to get ideas from somewhere Hall’s is a limited analysis: government, even if central, still has to get ideas from somewhere He suggests that consistent ideology allows government to govern rejecting others views He suggests that consistent ideology allows government to govern rejecting others views Pemberton looks at policy networks: relates involvement of actors to first and second or third order change Pemberton looks at policy networks: relates involvement of actors to first and second or third order change Howell contradicts the model altogether Howell contradicts the model altogether

11. International Post war austerity and rationing: bankrupted by saving Europe Post war austerity and rationing: bankrupted by saving Europe Oil crisis Oil crisis Cold war defence spending (cf. Germany, Japan) Cold war defence spending (cf. Germany, Japan) Protecting sterling in EMU Protecting sterling in EMU Stability and growth pact – but stricter Stability and growth pact – but stricter Aligning economic cycle to join Euro Aligning economic cycle to join Euro High % of trade with EU forces Eurozone shadowing? High % of trade with EU forces Eurozone shadowing? Staying out: £ becomes a hedging currency for $ + € Staying out: £ becomes a hedging currency for $ + €

12. What is government for? How much should we govern? How much should we govern? Government and control (traditional) Government and control (traditional) Markets (Thatcherism) Markets (Thatcherism) Regulation (New Labour) Regulation (New Labour) Sub-issues Sub-issues Clause 4 Clause 4 Deregulation Deregulation Market failures Market failures Redistribution (in secret?) Redistribution (in secret?)

13. Success or Failure Late 60s, early 70s generally viewed as failure Late 60s, early 70s generally viewed as failure But how do citizens remember Britain? Swinging 60s and smiling faces But how do citizens remember Britain? Swinging 60s and smiling faces Thatcher changed Britain Thatcher changed Britain Did she succeed in governing the economy Did she succeed in governing the economy Did she create a better Britain Did she create a better Britain New Labour govern ‘rationally’ New Labour govern ‘rationally’ They talk about evidence based policy: they get judged on evidence They talk about evidence based policy: they get judged on evidence Redistribution by stealth: good or bad? Redistribution by stealth: good or bad?