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    Current page location: Home > Answers > What is the difference between US capitalism and EU capitalism?
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    Lucky Swan
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    What is the difference between US capitalism and EU capitalism?

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    • Time:2018-11-05 14:06:43
    What is the difference between US capitalism and EU capitalism?
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    Krise Wu
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    EU capitalism depends on the country, but in general

    Europe has

    a) more SMEs i.e. privately owned businesses

    b) less dependent on stock markets for capital consequently banks tend to lend more to business

    c) more regulation and is generally less litigious as a result

    d) no distinction between laws i.e. law is law but US you have criminal, civil and commercial code.

    The EU single market imposes high standards on workers rights and harmonisation to try and prevent a race to the bottom on standards.

    EU countries like the US are mixed economies and politically there is more will for social programs such as welfare, health and pensions.

    Taxation tends to be higher accordingly.

    US capitalism

    a) while still having a lot of Mom and Pop businesses has a more developed capital markets so more listed small companies (i.e. Russell Index)

    b) more focus on the markets

    c) less regulated, regulation tends to be prescriptive rather than principle based and seems easier to circumvent. More litigious as redress is sort through courts rather than regulation, mediation or ombudsman.

    d) Law is a combination of criminal both statute and case law, civil and commercial codes.

    #1Floor 2018-11-05 17:00:16 Reply(0)
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