Global Capitalism and National Decline: The Thatcher Decade in Perspective

285 Pages·2022·15.274 MB·English

by  Henk Overbeek

Routledge Revivals
Global Capitalism and National Decline
First published in 1990, Global Capitalism and National Decline is a major
contribution to the study of British political and economic decline. The
author concentrates on the global nature of capitalism as the context for the
development of national capitalism, and on the relationship between internal
and external factors. A long-term view of British politics enables him to
demonstrate that competing popular explanations of Britain’s crisis and the
rise of Thatcherism in response to it, are in fact interconnected. The long
decline of Britain originating in the 19th century, the inherent weakness of
the post-1945 settlement, and the critical events of 1970s, acquire their
fullest meaning when seen as different ‘layers’ of one and the same historical
process. Henk Overbeek takes the story of Britain’s decline through to Mar-
garet Thatcher’s tenth anniversary in office. His book will be invaluable to
scholars and students of economics, politics, and history. it offers a clear
perspective on the problems of national decline within a global context, and
on Britain’s position in Europe and in the wider world.

Global Capitalism and National
Decline
The Thatcher Decade in Perspective
Henk Overbeek
Firstpublishedin1990
ByUnwinHyman
Thiseditionfirstpublishedin2022byRoutledge
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©HenkOverbeek1990
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ALibraryofCongressrecordexistsunderISBN:0044454139
ISBN:978-1-032-36897-9(hbk)
ISBN:978-1-003-33437-8(ebk)
ISBN:978-1-032-36898-6(pbk)
BookDOI10.4324/9781003334378
Global capitalism and
national decline
THE THATCHER DECADE
IN PERSPECTIVE
Henk Overbeek
London
UNWIN HYMAN
Boston Sydney Wellington
© Henk Overbeek 1990
This book is copyright under the Berne Convention. No
reproduction without permission. All rights reserved.
Published by the Academic Division of
Unwin Hyman Ltd
15/17 Broadwick Street, London W1V 1FP, UK
Unwin Hyman Inc.,
8 Winchester Place, Winchester, Mass. 01890, USA
Allen & Unwin (Australia) Ltd,
8 Napier Street, North Sydney, NSW 2060, Australia
Allen & Unwin (New Zealand) Ltd in association with the
Port Nicholson Press Ltd
Compusales Building, 75 Ghuznee Street, Wellington 1, New Zealand
First published in 1990
British Library Cataloguing in Publication Data
Overbeek, Henk
Global capitalism and national decline : the Thatcher
decade in perspective.
1. Great Britain. Economic conditions, history
I. Title
330.941
ISBN 0-04-445413-9
ISBN 0-04-445639-5
Library of Congress Cataloging in Publication Data
Overbeek, Henk.
Global capitalism and national decline : the Thatcher
decade in perspective / Henk Overbeek.
p. cm.
Includes bibliographical references.
ISBN 0-04-445413-9
ISBN 0-04-445639-5
1. Great Britain—Economic conditions—20th century.
2. Great Britain—Economic policy. 3. Capitalism—Great
Britain-—History—20th century. 4. Thatcher, Margaret. I. Title.
HC256.094 1989
338.941—dc20 89-16552
CIP
Typeset in 10 on 11 point Bembo
Printed and bound in Great Britain by
Biddies Ltd, Guildford and King's Lynn
Contents
List of abbreviations page xi
List of tables and figures xiii
Preface xvii
Introduction 1
1 Long waves of class formation 11
Class formation in the world system 11
The temporal dimension of class formation 17
Class formation and the political articulation of class
interests 23
Capital fractions 23
Concepts of control 25
Generations in the bourgeoisie 29
2 The rise and fall of British hegemony 35
The making of the British class structure 35
The rise of British capitalism 36
The nature of the British state 37
The logic of priority 38
The class structure of the Pax Britannica 39
The heyday of British industrial capital 41
The aristocratization of the bourgeoisie 44
Britain's imperial decline 46
British foreign investment 49
The incorporation of the labour movement 51
The downfall of the Liberal Party 55
Towards the General Strike 57
3 Between New Deal and fascism: depression,
war and transition in Britain 59
The turn to protectionism 60
Corporate liberalism in the 1930s 63
vii
GLOBAL CAPITALISM AND NATIONAL DECLINE
The strength of the state monopoly bourgeoisie 68
The structure of the British economy during the 1930s 70
The declining industries 71
The Fordist industries 76
The balance of depression 80
The long decline: determination vs. contingency 81
4 The redefinition of Britain's
global position 1941-73 84
Global Fordism 84
Postwar reconstruction of the global order and the birth
of the 'special relation' 88
Britain's relationship with Europe 93
Early European integration projects 96
Suez and the special relationship 97
The move towards Europe 100
The world market and the British political economy in
the 1950s 105
The multinationalization of the British economy 105
The effects of City dominance for British monetary policy 106
5 The postwar Fordist offensives 112
The postwar Labour government 113
Nationalization 114
The establishment of the welfare state 119
The continued decline of Britain during the 1950s 122
Concentration and centralization of capital 123
Labour relations in the postwar decades 125
Modernization offensives in the 1960s 128
The rise of the Conservative corporate liberals 128
The Macmillan era 130
Labour back in power 132
The failure of Fordism 137
6 Global crisis and the rise of neo-liberalism 141
The crisis of the 1970s 141
Capitalism and crisis 141
The international context 144
Britain and the crisis 147
Weak state, strong City 151
The problem of union strength 152
Three options 154
The neo-liberal revolt in the Tory Party 155
The Heath years 155
Europe 156
viii