DEFINITION of 'Anglo-Saxon Capitalism'
A form of capitalism that is usually associated with the United Kingdom and the United States, but also characterizes the economies of such countries as Canada, Australia, New Zealand and Ireland. It traditionally has heightened free-market tendencies, characterized by less regulated financial and labor markets. It differs from its counterpart, continental capitalism, which is more state-controlled and focused on wealth redistribution. Most of the countries in continental Europe including France, Italy and Germany possess a form of the continental economic model.
BREAKING DOWN 'Anglo-Saxon Capitalism'
Advocates of the Anglo-Saxon economic model argue that it encourages innovation and creates competitive advantages that promote greater overall prosperity. Those who support the continental model maintain that it produces less inequality and poverty at the lowest margins of a society.