The Economy Before the affirmation of Britain as the most important industrial world power, thanks to the Industrial Revolution (1780-1830), the Country was basically rural.

The colonial empire Colonies let Britain improve its

commercial wealth increasing its import/export activity.

The transformation of the Country into an industrial one became particularly evident in the growth of slums and industrial suburbs.

However British worldwide dominance diminished in the 20th century especially at the end of World War II.

Current Economy Nowadays economy is characterized by

‘boom and burst’ cycles. Traditionally the two main political

parties (Conservative and Labour) have opposite approaches to economic matters.

The former supports and favours the free market, while the latter believes in the centralization of the economy managed by the state.

Liberal Market In between 1979- 1997, the two parties

reached a compromise accepting a combination of privatization and state management in order to foster a cooperation between the public and the private sectors.

Those who encourage privatization believe in an improvement of efficiency and in the reduction of government money.

Business Every citizen can contribute to the

British economic growth buying shares sold by the Stock Exchange.

The shareholders become owners of the companies in which they invest their money.

To get good results, companies must be run successfully.

Takeovers and merges Takeovers and merges especially

occur in large companies. To prevent unfair trading conditions

which could harm the workforce, it has been made a Competition Commission to control the risk of a possible monopoly.

Fair Trading.

Deindustrialization Globalization, cheaper prices and low-cost

manpower have been the reasons of the decline of many British manufacturing industries.

The productions of textiles, steel, coalmining and iron were considerably reduced between late ‘70s and early ‘80s.

Inflation and unemployment consequently came.

Britain slowly came out of recession between 1993-94.

Devaluation Britain is the sixth largest economic

world power. The reduction of the pound’s

exchange value had pros and cons: it helped exports, but discouraged people to buy foreign products.

Britain has not changed its currency.

Social class Social mobility seems to be still very

low and difficult. Class division remains a controversial

and perculiar aspect of English society.

According to the critics, this system is based on high levels of inequality.

Classes can be schematically divided into three big groups: the aristocracy, the middle class and the working class.

Social class Another level can be added:

underclass which identifies those who never worked, or the long-term unemployed.

According to polls, most Britons declare to belong to the middle class.