The Wealth Effect: How The Great Expectations Of The Middle Class Have Changed The Politics Of Banking Crises

Description

The politics of major banking crises has been transformed since the nineteenth century. Analyzing extensive historical and contemporary evidence, Chwieroth and Walter demonstrate that the rising wealth of the middle class has generated 'great expectations' among voters that the government is responsible for the protection of this wealth. Crisis policy interventions have become more extensive and costly - and their political aftermaths far more fraught - because of democratic governance, not in spite of it. Using data from numerous democracies over two centuries, and detailed studies of Brazil, the United Kingdom and the United States, this book breaks new ground in exploring the consequences of the emerging mass political demand for financial stabilization. It shows why great expectations have induced rising financial fragility, more financial sector bailouts and rising political instability and discontent in contemporary democracies, providing new insight to anyone concerned with contemporary policy and politics. Part I. Banking Crises and the Rise of Great Expectations: 1. Great expectations, banking crises, and democratic politics 2. Great expectations: banking crises, policy responses and politics 3. Household wealth and financialization in the United Kingdom, the United States and Brazil since the nineteenth century 4. The emergence of great expectations in the United Kingdom, the United States and Brazil Part II. Evolving Policy Responses to and Political Consequences of Banking Crises since the Nineteenth Century: 5. Changing expectations and policy responses to banking crises 6. Banking crises and voters over the long run Part III. Banking Crises, Policy and Politics in the United Kingdom, the United States and Brazil since the Nineteenth Century: 7. Banking crises in the United Kingdom in an era of low expectations 8. A banking crisis in the United Kingdom in an era of great expectations 9. Banking crises and politics in the United States before 1945 10. The 2007-2009 crisis and its aftermath in the United States 11. Banking crises in Brazil in an era of low expectations 12. Banking crises in Brazil in an era of rising expectations 13. Conclusion