About this video
- Video Title: British Enterprise
- Channel: pokachan
- Speakers: None explicitly named.
- Duration: 00:44:25
Overview
This video explores the historical evolution of British corporations and their governance within the broader context of Britain's economic history, industrialization, and political economy. It traces the development of the British capitalist system through the 19th and 20th centuries, touching on factors like rising wages, industrial revolution, population growth, and shifts in economic policy.
Key takeaways
- Early Economic Development: Significant economic development and rising real wages in Britain occurred gradually, even before the full onset of the Industrial Revolution, driven by trade, specialization, and organizational capabilities.
- Industrial Revolution's Impact: The Industrial Revolution accelerated income growth and was closely tied to the availability of power sources like coal and innovations such as the steam engine.
- Population Growth: Britain experienced substantial population growth during the 19th century, coinciding with industrialization, though the rate of growth later slowed with increased urbanization and education.
- Political Economy Shifts: The repeal of the Corn Laws favored industrial interests over agrarian ones, opening Britain to cheaper food imports and facilitating capital accumulation, which bolstered London's financial dominance.
- Corporate Governance Evolution: British corporate governance evolved with a strong legal foundation, influenced by principles of shareholder value and, at times, characterized by the continued influence of founding families, contrasting with the U.S. model of separation of ownership and control.
- Influence of Milton Friedman: The ideas of Milton Friedman, emphasizing the social responsibility of business as increasing profits within legally defined constraints, are discussed in the context of Anglo-American economic thought.
- Information Asymmetry: The inherent information asymmetry between companies and the state is presented as a reason for the state to delegate responsibility to companies to act within market disciplines, especially in common law traditions.
- Post-War Changes and Thatcherism: Post-World War II saw a shift towards a welfare state and nationalization, followed by a significant move towards free-market policies under Margaret Thatcher, emphasizing privatization and market liberalization.
- Economic Rationalism: The concept of economic rationalism, where all economic actors are subject to market disciplines, is highlighted as a driving force behind policy changes in the late 20th century, with variations in its implementation across different countries.
