The economic performance of the UK compared to Japan since 1990 has Essay - 1

The economic performance of the UK compared to Japan since 1990 has clearly demonstrated the superiority of the Anglo Saxon model over State Led Capitalism. Discuss - Essay Example Where as in state led capitalism, the productive forces are directed and controlled by the government in a capitalist manner. It is a social system combining capitalism with state ownership. Anglo Saxon economic model encourages innovation, competitiveness, and promote overall prosperity, and produces less inequality and poverty at the lowest margins of a society. It creates more jobs and delivers better working conditions as seen in UK where working condition is better than Japan. When people invest their own money, they have a chance to make profit by best efforts. Here production utilises at optimum level as the individual interest is involved. Competition pushes the producer to take up productive steps such as new technology, cost cutting, and use of best supply chain for making good profit (Schmidt, Vivien A., 2002). Other than these advantages, this economy also proves some disadvantages. This model of economy is responsible for a life of low wages and long hours for its employees. It creates inequality in society as the more talented and innovative people build strong financial position compared to less skilled individuals. Adding, poverty rates which were substantially higher in recent years in UK, where the economy is basically followed by Anglo Saxon economy model (Schmidt, Vivien A, 2002). State led capitalism economy advocates for the principle of individual rights. Consistent and rapid economic growth is the proven outcome of this economy. Human welfare is common in this economy. Its decentralised system of coordination is the greatest strength of its economy. But it has also some negative factors in its model. Because of more government intervention, social evils like nepotism, corruption, poor management may hurt the growth rate. In United Kingdom, Anglo Saxon model has allowed higher incomes for low paid workers, and at the same time it enhanced