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Perceptions of the global financial crisis in the US, UK, Canada and Australia: a comparative editorial analysis of the legitimacy of finance

Published online by Cambridge University Press:  20 January 2017

John Mikler ,
Sundran Rajendra  and
Ainsley Dianne Elbra
Sundran Rajendra
Affiliation:
McKinsey and Company, European Private Equity Practice, London, SW1Y 4UH, UK
Ainsley Dianne Elbra
Affiliation:
Department of Government and International Relations, The University of Sydney, Sydney NSW 2006, Australia
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Abstract

The Global Financial Crisis (GFC) is seen as arising from a new social structure of accumulation that institutionalised a neoliberal form of capitalism post the 1980s. This gave rise to “financialization,” which has increased both the power of financial markets over other economic sectors, and of financial market actors over national governments. However, while the neoliberal ideology underpinning financialization had a global impact, it sprang from the leading free market economies of the US and UK and was most readily embraced by states sharing their institutional support for it, such as Australia and Canada. But to what extent has it been questioned in these states since the crisis? In this article we examine perceptions of the legitimacy of finance via a 6 year comparative study of editorials in the mainstream press over 2007–2012. We do so because shifts in perceptions of the legitimacy suggest the extent to which the GFC produced the potential for more fundamental institutional change. We find that rather than this legitimacy having been undermined, or transformed, existing viewpoints instead hardened over the period considered. This indicates that, despite regulatory reform, the power of finance remains relatively unchanged.

Type
Research Articles
Information
Business and Politics , Volume 18 , Issue 1 , April 2016 , pp. 1 - 25
Copyright
Copyright © V.K. Aggarwal 2016 and published under exclusive license to Cambridge University Press 

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