Government Business Relations in USA and Europe - Business Assignment Help

Assignment Task :

Slide 1 - Government Business Relations in USA and Europe

This topic surveys the states of Europe and the United States in order to gain a broad understanding of the mix of historical and ideological reasons that have produced such variation between business and government models.  It will also address the important question of whether the states or Europe and America, despite their traditional differences, are now converging towards a very similar liberalist model of government business relations.  

Slide 2 - Regulatory model

In the US, the regulatory model has brought about relations between government and business and labour that are competitive.  Government interaction is predominantly through regulation, not through public provision or enterprise or control or key factors of production.  Business has economic power, but limited political power because of lack of organisation and fragmentation.  

Slide 3 - USA con’d

There is a strong ideological commitment to small government to free market ideologies.  This has particularly come about after the end of the new deal of the 1950s with the shift back to the neoliberal model as introduced by Ronald Reagan.  Under this model there has been significant lowering of taxes, industry regulation, and the shift was underpinned by Reagan’s belief that allowing wealth through business to expand would ‘trickle down’ to the rest of the society. 

Slide 4 - USA con’d

So the small government factor has also led to a hollowing out of cities and decaying infrastructure, things such as bridge collapses and what was demonstrated with the impact of Hurricane Katrina on New Orleans.  There has also been significant losses in manufacturing cities, such as former cities of Detroit and Indianapolis.  This deregulation of financial markets under this model also contributed to collapse and the need for bailouts as with less regulatory oversight of companies that had become ‘too big to fail.

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