Emma Barrett
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Beset with the economic and political conditions of the 1970s, the Conservatives in opposition and early office were, according to insider Sir Adam Ridley, ‘dealing with what they thought were existential problems, about the survival of capitalism’. This chapter introduces the concept of ‘survival capitalism’ as a term for the responses and strategies that were developed by a myriad of actors and institutions in reaction to seemingly existential threats. They crafted these using networks of influence to ensure capitalism not only survived but thrived in a challenging period of global economic change. Ultimately, this led to the expansion of capitalism as it became an agent of change, driving popular capitalism. The chapter argues reforms were culturally informed and highly contingent while the role of capital was complex; it was harnessed by the nation state for reasons of statecraft and not simply a vector for change. The literature on Thatcherism, conservatism, neoliberalism, the City and the Big Bang is explored, and the stock market system explained. Methodologically, the focus is on archival sources and oral histories. The benefits of attending to culture and intent are expounded. Both cut across structure and agency and take account of circumstances, ideas, policies, culturally constituted institutional preferences and objectives, actions and reactions. Finally, structure is explained. The book begins with the authorities – the Government and the Bank of England – before moving to the London Stock Exchange which forms a bridge with two case study chapters on elite stockbrokers Cazenove and Lloyd’s of London.

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‘Survival capitalism’ and the Big Bang

Culture, contingency and capital in the making of the 1980s financial revolution

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