NOW THAT THE SOVIET UNION is no more, there are two economic models on offer in the world–three, if you count Cuba and North Korea, which there is no reason to do since imitators are hardly lining up for that short-cut to impoverishment. The American model can broadly be described as one that emphasizes individual initiative, flexible labor markets, low taxes, and minimal regulation. The European model, which explicitly sees itself as an alternative to the red-in-tooth-and-claw capitalism of the United States, emphasizes collective responsibility, regulated labor and product markets, and high taxes to fund a generous safety net.
Then we have Great Britain, in which Tony Blair’s Labour party is attempting to find a “third way” between the U.S. and European models. When it comes to economic policy, it is Labour chancellor of the Exchequer Gordon Brown who has taken on the task of finding that third way.
