Demand, dysfunction and distribution: The UK growth model from neoliberalism to the knowledge economy

Theories of ‘growth models’ explain capitalist diversity by reference to shifting drivers aggregate demand in different national economies. This article expands the growth models framework beyond its conventional focus on debt-driven and export-driven demand, through an ideational analysis Thatcher’s vision a property-owning democracy, Blair’s knowledge-driven agenda. Drawing policymakers’ statements, it shows how these hypothetical differed from model that ultimately prevailed. Using data distribution wealth wages, highlights both approaches failed generate sustainable demand; case, because insufficiently broad capital ownership, lucrative knowledge work. indicates explanations dysfunctional need consider not just split income between labour capital, but also households.