What is an Anglo Saxon Model in Economics?
The term Anglo Saxon derives its roots from the history of development in countries like United States, United Kingdom, Canada, Australia etc. Anglo Saxon model is also known as economic model of capitalism since it marks the beginnings of capitalism. This is a neo-liberal system of development and is a market based model.
Anglo-Saxon economies have favoured a more ‘residual’ welfare state, with reduced tax rates and flexible labour markets which incorporate high incentives to finding work.
Features of Anglo Saxon Model
The Anglo Saxon model emphasis fewer taxes and has fewer government regulations. It is based on ideas of Adam Smith. It has following features:
- Low levels of government regulation
- Low level of public services
- Low barriers to free trade
- Focus on private property rights
- Low level of taxes
- Minimum governance
- Less influence of unions
- Competition and free market as the driver of prosperity
- Focus on shareholders’ value
- Fixed quality outcome
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