Semantics maybe? Models of political economy

[Le Libérer]

In class yesterday, (Managing in Social Change) one of my class mates brought up the terms, Anglo-American political economy and the continental European model of political economy. I have googled those terms and nothing definitive pops up.

So, what constitutes Anglo-American political economy and the continental European model of political economy? I am assuming the two terms describe corporate governance of how to run corporations?

Thanks!

[Agent Equality]

He probably just means the American form of heavy capitalism and european social democracy. That's what comes to mind when I read it anyway

[Die Neue Zeit]

I don't think so (to the OP or the post above). The key words are "political economy," long since discarded with the rise of that heap of junk known as "economics."

It is said that part of Marxism is a critique of British political economy, when it fact it should be Scottish political economy. OTOH, Say's Law, which was criticized by Marx, was of a French economist. Likewise, the Physiocrats were the first political economists, but were based in France.

I think the models refer to debates within classical political economy until the demise of the Ricardian school.

[Q]

Depending on the context it could also refer to the popular dichotomy placed between the "anglo-saxon" (Reagan-Thatcher) model and the "Rheinland" (welfarestate, fordist) model of capitalism.

[Die Neue Zeit]

You're probably right. "Managing in Social Change" is probably not the kind of course conducive towards discussions on what I wrote above.

[Le Libérer]

What I initially thought was Anglo-American political economy meant the creation of many crappy jobs with lower wages, with many poor workers at the bottom and and huge profits to those at the top.
The continental European model of political economy would create fewer better jobs, and rely on heavy states to redistribute benefits to people or groups to keep order.

Of course choosing which one is better makes it interesting doesnt it? :)

[Blake's Baby]

Not really; unemployment in Germany is lower than in Britain for instance.

The distinction is between comparatively de-regulated markets, like the British banking sector and the 'flexible' labour market in the UK (millions on welfare and millions more in low-paid part-time jobs, while we work the longest hours on average in Europe); and more highly-regulated state interventionist economies like Germany, France or Italy.

Neither model works of course.

[Stirnerist]

At an outside I suppose it could describe something akin to the "Methodenstreit" between historicism and the more classically-liberal Austrian school.