Anglo-Saxon model

The Anglo-Saxon model so called because this is the practiced in English-speaking countries such as the United Kingdom, the United States, Canada, New Zealand, Australia as well as Ireland is said to be a capitalist framework that emerged in the 1970s based on the Chicago school of economics, spearheaded in the 1980s in the United States by the economics of then President Ronald Reagan dubbed Reaganomics, & reinforced in the United Kingdom by then Prime Minister Margaret Thatcher dubbed Thatcherism. However, its origins are said to date to the 18th century in the United Kingdom and the ideas of the classical economist Adam Smith.

Characteristics of this model increase low levels of regulation and taxation, with the public sector providing minimal services. It also means strong private property rights, contract enforcement, and overall ease of doing business as well as low barriers to free trade.

History of Anglo-Saxon model

The Anglo-Saxon model came out in the 1970s from the Chicago School of Economics. The return to economic liberalism in the Anglo-Saxon countries is explained by the failure of Keynesian economic management to command the stagflation in the 1970s and early 1980s The Anglo-Saxon model was shown from the ideas of Friedman and the Chicago School economists and the conventional wisdom of pre-Keynesian, liberal economic ideas which stated that success in fighting inflation is dependent on managing the money render whilst efficiency in the utilization of resources and that unrestricted markets are the most efficient for this intention of combating inflation.

By the end of the 1970s the British post-war economic model was in trouble. After Labour failed to solve the problems it was left to Margaret Thatcher's Conservatives to reverse Britain's economic decline. During Thatcher'sterm in multiple the rank of the British economy and its society started to change. Marketization, privatization and the deliberate diminishing of the remnants of the post-war social-democratic model were any affected by the American ideas. The Thatcher era revived British social and economic thinking, it did non wholesale import of American ideas and practices. Therefore, the British shift to the correct did non develope the any real convergence toward American socio-economic norms. However, with time British approach, that European economies should be inspired by the success of the United States, built an ideological proximity with the United States. After a process of transferring policy from the United States it became obvious that a distinctive Anglo-Saxon economic model was forming.