Cultural continuity in advanced economies. Britain and the US versus continental Europe

Abstract:

This book compares and contrasts the minimalist state intervention in social and economic matters of the USA and Britain with the interventionist and state reliance characteristics of the nations in Continental Europe.

The work is organised over six substantive chapters, the first of which is by way of introduction. Chapter two explores the eighteenth century experience, looking at the emergence of individualism and economic liberalism in Britain - through the championing of Adam Smith - and the international free trade ambitions of the American Colonies and their post colonial successors, as compared with the increasing centralisation and importance of the state’s role in determination of national economic policy. Chapter three covers the nineteenth century, highlighting the dominant influence of the Industrial Revolution and the Reform Act in Britain, which prospered through successful entrepreneurship as compared to the countries of continental Europe, which experienced the Industrial Revolution later and whose economic development remained subject to higher levels of state control. The fourth chapter looks at the impact of the most important industrial innovation of the nineteenth century - the railroad - and compares the experience of Britain with that of the USA, and of both with that of continental Europe, where right from the outset the railroad was considered a public service with pricing and funding strongly linked to taxes. However despite these differing approaches all three reached a similar level of railroad efficiency in the 1800s. Chapter five considers the twentieth century, examining the impact of two world wars, an apparent failure of capitalism and the rising threat of communism, with all three - Britain, the USA and Continental Europe - seeing an increasing public sector employment through the middle of the century but diverging experiences in the latter part of the century. The essential differences of economic philosophy remained at the end of the nineteenth century with Continental Europe developing the social compact and the USA and Britain continuing to opt for economic and social individualism.

The work will interest scholars and students engaged in economics, comparative politics and international affairs.