It is striking that historians of the early nineteenth century have been relatively reluctant to consider relationships between economic policy and the consolidation of the British state. In today's context, the economic and political challenges posed by both European integration and resurgent nationalism have generated hotly contested controversies on the political economy of state formation. From the perspective of the United Kingdom, the prospect of political and administrative devolution has forced us to address the implications of political decentralization for regional economic development (and vice versa) and to consider in turn the impact of these dynamics on the political integrity of a multinational state. For Britain, the period between circa 1780 and 1850 was characterized by unprecedented economic growth, imperial crisis and acquisition, and political consolidation. In a metropolitan sense the most dramatic feature of this process was, of course, the creation of the United Kingdom of Great Britain and Ireland in 1800. Insofar as historians of early nineteenth-century Britain have examined the relationship between “state formation” and economic policy, however, they have tended to focus on the ideas, politics, and pressures surrounding the retreat of the state from economic intervention. Thus in more general accounts it became axiomatic that the nineteenth-century state shrank progressively from social and economic intervention, liberating commerce, and resting the fiscal system on secure but modest direct taxation.More recently, the relationship between the concept of “laissez-faire” and British state formation has been dramatically revised and refined by Philip Harling and Peter Mandler.
Labour Market Reforms and Changes in Wage Inequality in the United Kingdom and the United States