Anglo-Saxon Economy - Disagreements Over Meaning

Disagreements Over Meaning

Proponents of the term "Anglo-Saxon economy" argue that the economies of these countries currently are so closely related in their liberalist and free market orientation that they can be regarded as sharing a specific macroeconomic model. However, those who disagree with the use of the term claim that the economies of the these countries differ as much from each other as they do from the mixed market economies of northern continental Europe.

Differences between Anglo-Saxon economies are illustrated by taxation and the welfare state. The UK has a significantly higher level of taxation than the US. Moreover, the UK spends far more than the US on the welfare state as a percentage of GDP and also spends more than Spain, Portugal, or the Netherlands, all of which are in mainland Europe. This spending figure is however still considerably lower than that of France or Germany.

Although the term refers to the macroeconomics of Anglo-Saxon countries, it isn't limited to English-speaking countries. The economies of Spain and some of the newer members of the EU are regarded by some as non-English-speaking examples of "Anglo-Saxon" economies.

In northern continental Europe, most countries use mixed economy models, called "Rhine capitalism" (a current term used especially for the macroeconomics of Germany, France, Belgium and the Netherlands), or its close relative the "Nordic model" (which refers to the macroeconomics of Denmark, Iceland, Norway, Sweden and Finland).

The debate amongst economists as to which economic model is better, circles around perspectives involving poverty, job insecurity, social services, and inequality. Generally speaking, advocates of "Anglo-Saxon capitalism" argue that more liberalised economies produce greater overall prosperity, while defenders of continental models counter that they produce lesser inequality and lesser poverty at the lowest margins.