After reading Chavs, I reread the work of Charles Murray on the underclass. As an undergraduate, I was fascinated by the work of Charles Murray, the controversial American political scientist and libertarian, who documented the rise of the underclass in the United States. In the early 1990s, he was invited by the Institute of Economic Affairs to study Britain’s underclass. Murray, who perceived himself as standing in a long line of classical liberals, was very definite about the causes of the rise of Britain’s underclass – the undermining of the family structure as well as social welfare programmes. You can read his study, as well as several critiques of it, by clicking here. Please be aware that some of Murray’s work (particularly The Bell Curve) needs to be read with discernment.
My colleague and former PhD student Gareth Campbell has created a website about the British Railway Mania - click here . This episode has been described by the Economist as probably the greatest bubble in human history. Gareth's website provides background on the Mania and posits some explanations for the 'bubble'. In his explanation of why the bubble happened, Gareth places a lot of emphasis on investor myopia regarding future dividends and uncalled capital. His study of investors during the episode does not support the view that this episode was fuelled by naive and irrational investors.