Thursday, October 22, 2015

UK Economic System

The UK has a mixed economy that leans towards a free market with some government controlled parts.

The UK has fairly free economy; it is one of the freest countries in Europe. It’s economy was built on the foundation of open trading and an advanced financial sector. It is a powerful trading company. The UK also has efficient businesses and a free labor market. Several of the UK’s most prominent industries have been privatized, such as British Rail, British Airways, and British Petroleum.

"Historically a champion of economic freedom in Europe, the United Kingdom has developed its economy based on a strong rule of law, an open trading environment, and one of the world’s most advanced financial sectors. A relatively liberal labor market by European standards complements one of the world’s most efficient business environments."  (read more here)

However, the UK does have large rates of government spending, so the economy is still mixed between the public and private sector. The government provides many resources free for its citizens, such as healthcare, substantial welfare benefits, and education, among other things. This is funded by high tax rates. The highest individual UK tax rate currently is 45%.

There are also elements of a traditional economy still present in the UK, as they still have a Queen. The Queen brings in money from tourism, however there is still a large cost needed to provide for the Royal Family, so this section of the economy is very small.

UK Group: Ruby, Emily, Kayla

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