This volume examines the major trends in public finance in
developed capitalist countries since the oil crisis of 1973. That
year's oil shock quickly became an economic crisis, putting an end
to a period of very high growth rates and an era of easy finance.
Tax protests and growing welfare costs often led to rising debt
levels. The change to floating exchange rates put more power in the
hand of markets, which corresponded with a growing influence of
neo-liberal thinking. These developments placed state finances
under considerable pressure, and leading scholars here examine how
the wealthiest OECD countries responded to these challenges and the
consequences for the distribution of wealth between the rich and
the poor. As the case studies here make clear, there was no simple
'race to the bottom' in taxation and welfare spending: different
countries opted for different solutions that reflected their
political and economic structures.
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