The Anglo – American Welfare Model

The Anglo-American welfare model has been lauded as the most effective model for its contribution to the growth of the United States economy. The model differs from those favored by the European economies in the way the employees are accorded freedom and status in an organization or institution. In European economies, the employees still have the status of an important figure in an organization. They receive maximum possible benefits from the organization and enjoy substantial freedom. On the other hand, the Anglo – American model aims at getting the most out of employees, but with minimal costs directed towards their welfare, Therefore, the model seeks to uplift the organization and the investors using employees as mere objects to bring about the change. It is more of a contractual association where the performance of an employee determines their longevity, pay, and benefits in an organization. There is a need for the medication of the Anglo-American Model to offer maximum protection for the employees' social welfare. 

The Anglo - American model traces its roots back to the 19th-century British Economic Theorists ("The Anglo-American Model: Fact or Fantasy?" n.d). Ideologically, the Anglo-American model favors neoliberalism. The investors in the economy have equal roles in the market and those make control the major share of the market wins the day. The free-market capitalism, therefore, has most of the organizations striving to outdo the other and control the market, and in the process, they tend to give less attention to employees as compared to the Continental Europe models ("The Anglo-American Model: Fact or Fantasy?," n.d). The background capitalist ideologies are thought to facilitate a faster growth rate in a country. It is thought that the US has a larger share of influence across the world because of capitalism. European models, on the other hand, are thought to be too democratic and thus derail development as lots of resources are channeled towards the employee welfare. 

The Anglo-American model requires some modifications to help protect the employees during their times at organizations and institutions. Employees are a core component of the organization and their efforts and ideas help bring about success. Successful organizations, as a result, contribute to the growth of a nation. The United States (US) has enjoyed growth over the past two centuries, except for times such as during the years of depression. Generally, the Anglo – American Model remains one of the most successful and has propelled the US to the top of charts in terms of economic growth. The US is a major exporter to countries across the world, thanks to a model that utilizes as much as possible as compared to the other models. Employees work hard to enjoy the benefits of their output. The incentive to earn more as the output increases is a good driver behind successful economies, such as the United States. However, this model does not fully protect the employee and they are at risk of losing a lot if the situation does not favor them. In the case that one fails to hit the targets, there is a high chance that they can be easily replaced, leading to constant job losses. Also, the contractual system does not guarantee employees longevity at their jobs and they risk minimal benefits after they reach their retirement ages ("The Anglo-American Model: Fact or Fantasy?" n.d). 

There is a need to modify the model and consider their freedoms, opinions, decisions, and beliefs. Though an employee's labor is a factor of production, they are humans who need care, considerable judgment, and objective approaches when handling them. Rarely does the Anglo – American model look at such issues as employees' long term social benefits. The model has its main focus on the growth of the organization but the drivers of that growth are not recognized. Today, there is a big disparity in income between the high ranking organizational employees and the low ranking ones. Directors and manager earn more while the field officers and those who do the core tasks earn very little. The inequality is usually brought about by the quest for an efficient system with generally a maximum production (Okun, 2015). There should be a modification to enable both the top level and low-income employees to enjoy have similar opportunities in the market. Today, the top earning employees earn more money and have a surplus which can be used to purchase property, invest, and save. On the other hand, the low-income employees earn what can hardly sustain their daily needs. They, therefore, live on limited budgets and may be forced to frequently borrow to get some basic needs. They lack adequate funds to save and invest and thus are at a disadvantage as compared to the high earners in the economy (Okun, 2015). 

There is a need for the modification of the Anglo – American economic model because it undervalues the employees. There is also a weak community system and generally, the public sector is neglected and the people are exploited by the mega companies. The model favors the investors to an extent that employees are seen as negligible and simply replaceable objects. Unlike the continental European model, the Anglo-American model does not take the employees' social welfare into consideration. Social welfare is overlooked, despite its importance and the role it plays in an employee's productivity over time. Also, the Anglo – American model is ideologically a product on capitalism, a system that sustains poverty among the poor and low-income employees. 

References

Okun, A. M. (2015). Equality and efficiency: The big tradeoff. Brookings Institution Press. Retrieved Aug 7, 2017 from: https://assets.aspeninstitute.org/content/uploads/files/content/docs/OKUN_EQUALITY_AND_EFFICIENCY_(AS08).PDF 

The Anglo-American Model: Fact or Fantasy? (n.d). Retrieved Aug 7, 2017 from: http://www.ciss.it/web/content/anglo-american-model-fact-or-fantasy