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The Economy of the United Kingdom

History: XIX Century


At the beginning of the year, the United Kingdom was not the same today, only England was its main economic engine. When the industrial revolution broke out in early 1800, the United Kingdom grew ever seen to date. That's when this nation became the world's most powerful economy in the nineteenth century. The mainstay of the economy was the coal industry that fed the factories of textiles and steel that was in the big cities: London, Manchester, etc. With the advent of the steam engine, Britain changed its main economy was now coal, railway engines and those big wheels for steam-powered ships.
With the rise of the railroad and steamship, other industries were growing into mid-nineteenth century. The textile industry as such, was the most demanded product exchange during this century. Had such demand for 1830 - 1850 was not enough cotton that was extracted from the North of England, it was then that there was an new economic expancin, the economy of this country could influence the economy of countries those who bought the raw material, in this case the United States of America and its colonies around the planet.

But the exchange of goods for raw materials was not enough for the great economy of the United Kingdom. Began to export and sell their products as such, without a trade. Poor countries on five continents, buying their products at low prices lower than their French and Spanish competitors. Many of these countries had been upset by the wars and interventions of the French forces. At low prices, thanks to the contempt he had for France by these wars, was what helped Great Britain to expand its products. The Royal Navy, with marked routes, were the owners of the oceans at that time, it helped that their textile products could reach their destinations in various countries.

Second Industrial Revolution: Capitalism


In the late 19th century created a new economic system, capitalism. This system was characterized by replacing the single trader, by entrepreneurs who were the owners of factories, employing hundreds of people and controlled the local markets. All this ended with the second industrial revolution, that's when the factories came into the hands of financiers. That capitalism ceased to be an industrial practice and became Financial Capitalism which led to the Corporations. Banks and Financial Houses in London had its peak during the end of 1800, and who controlled the majority of English industries. This had worried MPs and investors, as these financial houses also controlled assets in markets foreigners.Any action privaticacin foreign or imbalance in the economies of other nations could influence the British bank.

The Economy of the United Kingdom

XX Century
In the early twentieth century, world production was divided into 3, on the one hand the powerful United Kingdom who was still with the global control on the other side to a lesser extent, his brother across the ocean the United States of America and the like the latter, the great competitor in the UK, Germany. United Kingdom and Germany was militarily and economically growing, but could not compete openly as global banks and the majority of payments between nations were made by financial firms in England.

Postwar Economy
Despite the victory over Germany, the country entered an economic crisis caused largely by the large number of human losses, military and civilians. The country needed money to repair their buildings, to repair its military bases, to feed their families. During the decade of the twenties, post-war crisis lasted, which later would become the Great Depression. This crisis in the financial systems of England caused a loss of investors, many companies and people moved to America to get a better quality of life. The last day of October the Londoners rose up with the news, the stock market on Wall Street had collapsed. The British economy was on the line. Britain abandoned the "gold standard" that it was investing in this metal, the country quickly changed from a free market model of exchange to a more closed to protect their interests and local economy. These anti-crisis measures could not prevent the growth of unemployment, which reached its highest figure of 20% in 1933. The only industry that flourished in the interwar years was tourism, many Americans traveled to England to see the country.

WWII: Economy in War


During the early years of the war against Germany and the Axis powers, the United Kingdom became dark moments, the economy was not in his prime, hada 13% unemployment, had not yet recovered from the crisis of 1929. The soldiers were mobilized quickly to the front lines stationed in France. Most of the funds were intended for the production of war material: uniforms, ammunition, weapons, vehicles, among others. All the people of England, Scotland, Wales and Ireland did their share of work either by buying War Bonds, working in factories or going to the front.
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The Economy of the United Kingdom

In 1941 the English government imposed conscription for men, but women should do their part in the factories, building armaments. This war was costing a high price for the country, about 15.5 billion U.S. dollars.Exports during the war fell 37%, after that the government had estimated a total of 31.4 billion U.S. dollars to repair their cities reduced to rubble and revive its economy

A new Postwar
At the end of World War II, with the support of the United States of America, the UK managed to get by taking austerity measures during the 5 years, from there,the decade of the fifties and sixties was a time of economic growth. Although the country was no longer that powerful nation of the century, Britain maintained a growth rate of firm steps, close to 2.9% per year, which was not a cup as high compared with Germany or France.

Oil Crisis
In the early 70's global markets come down again, this time the oil crisis of 1973 shook England, plunging the nation into a new resesin. After several setbacks in the government and parliament, in 1975 the resesinhad come to an end, leaving consequence a fall of 1.1% of GDP, inflation of the currency and rising unemployment. Finally after all these tragedies, economic, and after the pound was devalued, the UK accepted a bailout from the IMF, which lent 2.3 billion pounds at the time.Several austerity measures were put to both the population and the government of the time.

Neoliberal Policy
The era of neoliberalism ranging from 1979 to present. During the decade of the eighties, in order to reduce taxes and to avoid deregulation of markets, privatized most enterprises. This resulted in losses and a fall of nearly 5% of GDP by the end of the decade. United Kingdom experienced during the eighties economic restructuring known as neoliberalism, which was to modernize the economy by reducing government spending (Privatizing enterprises) and opening up to global capitalism. This process was not easy, the unemployment rate increased during 1984 and madeconciderablemente late reached a record high 3.3 million unemployed due to closure of old factories. In the early nineties was beginning its slow recovery process from 1993 to 1997, was reduced

The Economy of the United Kingdom

by 50% unemployment. Since 1998, the UK experienced a gradual economic growth not seen since the days of 1900. Until 2008 the growth was approximately 2.68% annually. Most of the European Union, and it was not until the second quarter of 2008 when the current global economic crisis came, the country went back into recession. In that year, to safeguard banking institutions, the government had to nationalize several banks and financial firms. The Royal Bank of Scotland was one of these institutions nationalized and controlled by the Ministry of Finance. The recession hit again the jobs of the English, leaving about 1.5 million unemployed.

The New Recession


When in early 2008 it appeared that would be another year of growth, no one imagined that in the second quarter of this year, another obstacle would appear on the UK economy. The Recession of 2008, originated in the United States hit more heavily in developed countries, capitalist or socialist. In early 2009, the UK government gave an official announcement, the country was in recession. Unemployment increased to 5.2%, a figure very high in a first world country. Most affected were the young, who leapt out of universities and seeking their first job, they were almost 20% of the number of unemployed. 2010 was a year of growth, the country emerged for the first time in 2 years.Growing up in the four quarters, growing 2.4% in the year. No doubt this was the worst recession since the Second World War, but the country continued to grow by 1.1% in 2011. And it is expected to increase further during the 2012, it is said, is the year of the end of the economic crisis.