Economic history of Britain

The economic history of the United Kingdom deals with the economic history of England and Great Britain from 1500 to the early 21st century. (For earlier periods see Economy of England in the Middle Ages and Economic history of Scotland).

After becoming one of the most prosperous economic regions in Europe between 1600 and 1700, Britain led the industrial revolution and dominated the European and world economy during the 19th century. It was the major innovator in machinery such as steam engines (for pumps, factories, railway locomotives and steamships), textile equipment, and tool-making. It invented the railway system and built much of the equipment used by other nations. As well it was a leader in international and domestic banking, entrepreneurship, and trade. It built a global British Empire. After 1840 it abandoned mercantilism and practised "free trade," with no tariffs or quotas or restrictions. The powerful Royal Navy protected its global holdings, while its legal system provided a system for resolving disputes inexpensively.

Between 1870 and 1900, economic output per head of population in Britain and Ireland rose by 500 per cent, generating a significant rise in living standards. However, from the late 19th century onwards Britain experienced a relative economic decline as other nations such as the United States and Germany caught up. In 1870, Britain's output per head was the second highest in the world after Australia. By 1914, it was fourth highest. In 1950, British output per head was still 30 per cent ahead of the six founder members of the EEC, but within 50 years it had been overtaken by many European and several Asian countries. The economic history of the United Kingdom deals with the economic history of England and Great Britain from 1500 to the early 21st century.

During the 1500-1700 period many fundamental economic changes occurred, which paved the way to the industrial revolution. Especially after 1600, the United Kingdom took over the role of the leading economic region of Europe from the Mediterranean nations. The fundamental difference lay in the mainly privately owned enterprises in Great Britain in contrast to the arguably less successful state-owned economic systems in the Mediterranean.

Following the Black Death in the mid 14th century, and the agricultural depression of the late 15th century, population began to increase. The export of woollen products resulted in an economic upturn with products exported to mainland Europe. Henry VII negotiated the favourable Intercursus Magnus treaty in 1496.

...
Wikipedia