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The following article was published in our article directory on November 10, 2010.
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Article Category: Business Management
Author Name: xia zihui
America's most intelligent people to give up the industrial and technology industries, but not engaged in more high productivity areas, such as legal, financial, consulting and non-profit activities
In the U.S., is very obvious signs of decline. Abuse of power, political polarization, and the costly financial crisis, have weighed heavily on the economic. Now, some experts worry that the U.S. will be suffering from "the British disease."
Trapped in slow growth, the United States today, as the British tired of World War II, will be forced to reduce its international responsibility. This emerging forces such as China will provide opportunities, but will also let the world in a period of geopolitical uncertainty.
Analysis of these prospects, understanding the nature of the British disease is important. It is not simply the United States and Germany after 1870, growing faster than the United Kingdom. After all, the rapid development of fully functional late-coming countries like China today. The problem is the United Kingdom in the 19th century did not lead the economy to a new level.
Britain from the first industrial revolution transform the old industrial action to slow the modern sector, which hinders the adoption of mass production methods. It also did not use the precise mechanical energy dependent, resulting in the assembly of typewriters, cash registers and motor vehicles, can not use machines manufactured parts. In other emerging industries, such as synthetic chemicals, fuel, telephone communication, too, in these areas, the British failed to establish a foothold.
Low-cost emerging economies, the rise of power, making textiles, steel and shipbuilding job losses in old industries is inevitable. But the British failed so special is that it has failed to turn those old 19th century a new industry into the 20th century industry.
U.S. will not repeat the same mistakes? To answer this question, we must understand the Kingdom of the reasons for the lack of technological progress. Generally accepted explanation is that the diligence and innovation in British cultural exclusion. Modern river in the United Kingdom, the industrious people have been incorporated into the ruling group. Starting from the mid-19th century, the most brilliant talents are into politics, not business. Promoted up from the store's business manager, said only a second-rate goods.
In fact, this so-called interpretation of the British decline, can not stand the test of time. There is no systematic evidence that British managers inferior.
In America today, could not find evidence of earlier problems. Silicon Valley's public companies have not complained about the lack of talented managers. Business, even to the MBA are a few car companies.
The decline of the UK, and the second is the generally accepted interpretation of the education system. Oxford and Cambridge was founded long before the industrial age, creating a prominent philosophers and historians, but not many scientists and engineers. But this argument does not apply to the United States, the University remains the world leader in attracting the world's science and engineering graduate students to the United States - many of which still remain in the United States.
Others interpreted the decline of the British role in the financial system. Bank of England grew up in the early 19th century, when the industry is not capital requirements, mainly for foreign rather than domestic investment and financing, which also makes the need for capital industry is difficult to grow.
In fact, that even the British favored foreign investment in domestic real evidence is weak. In any case, this history has nothing to do with the status of the United States, the United States is at the receiving end of foreign investment, rather than running side.
Failure to maintain the prosperity of the UK final explanation, attributed to economic policy. Britain did not establish an effective competition policy. In response to the needs of the collapse in 1929, it set up from the tariff barriers. There is no foreign competition, industry has become Gluttons. After World War II, the ruling Labor Party and Labor Party turns, leading to policies continue to retractable, increased uncertainty, resulting in a long-term financial problems.
This is the most convincing explanation of the British recession. 30 years for the financial crisis of the last century, the British failed to establish a coherent policy. The party did not work together to solve economic problems, but is still constrained to each other. Countries into the fighting. Politics has become difficult to control, policy volatility, economic even more unstable.
In short, the United Kingdom's failure is political, not economic. Unfortunately, this history is very similar to the situation with the United States.
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