One.
After the Glorious Revolution, Britain easily won the Opium War in China, and on the European continent, it managed to break free from a long confrontation with France. Before the Glorious Revolution, Britain and France had been old rivals in European history. Britain is inferior to France, with a relatively small total area and population. However, after the Revolution, Britain gradually rose to prominence and engaged in a 127-year war with France. Eventually, Britain destroyed France's maritime power through its powerful military force, seized France's overseas colonies, and began the glorious 19th century.
This astonishing military rise was largely due to the increased borrowing capacity of the British. Although the UK's tax revenue is higher than China's, direct tax revenue accounts for only a small fraction of its fiscal revenue, and the vast majority comes from government bonds. Thanks to its strong financing capabilities, Britain was able to continue to win the war and eventually became the world's number one hegemon.
France's failure, on the other hand, stemmed from its limited borrowing. Although France** is willing to pay high interest rates, it is unable to attract enough investment due to its poor creditworthiness. The French tried to issue government bonds, but failed repeatedly. During the Napoleonic period, France borrowed only 1% of the British, which was evident in the Battle of Waterloo.
Two. Why is French borrowing restricted?Institutional differences are key. In the Middle Ages, France was a feudal state, and the power of the king was constrained by the nobility. Over time, however, the French kings tried to strengthen their power, expanding their territories through warfare. By the time of Louis XIV, the French monarchy was at its peak, and its power was almost infinitely expanded.
In contrast, the British constitutional monarchy limits the power of the king. After the Glorious Revolution, Britain introduced the Dutch national debt system, which successfully transformed "personal borrowing" into "public debt". The maturity of the parliamentary system in Britain and the confidence of the people in the country made it easy for Britain to access global investment and support the war with France.
Three. Why is the UK's credit so high?In borrowing, credit is the key factor. In European history, wars often required large sums of money, and kings sought to borrow money to support them. Initially, the king borrowed money on his personal creditworthiness, but this was limited by trust and the transience of the king's lifespan. As a result, the Habsburg Emperor skillfully introduced the national debt system into Europe, successfully borrowing large sums of money through the credibility of the parliament, the ability to repay debts, and the permanent existence of institutions.
Britain developed a full-fledged national debt system on this basis, while France struggled to borrow money. The capriciousness and lack of credibility of the French monarchy** system made it impossible to attract investors. The UK's transparency and credibility are so popular that not only its own citizens are actively buying government bonds, but even continental European investors, including France, are willing to invest in the UK.
Four. France's debt restrictions have led it to raise taxes and even sell its official titles to make up for its fiscal shortfall. Unlike England, parliamentary politics in France was immature and difficult to control the wayward behavior of the king. France's ** conference has not been held for more than 100 years, and the king's power is unchecked, resulting in the low credibility of French government bonds and the distrust of investors. Although France followed the example of Britain in issuing government bonds, it failed to succeed due to institutional shortcomings.
Therefore, with its advanced constitutional monarchy and mature parliamentary system, Britain has successfully developed a highly credible national debt system, which has provided strong financial support for its military rise. On the contrary, France's institutional lag and lack of credibility have become the root cause of its inability to borrow enough money. This institutional difference has enabled Britain to successfully counterattack in international competition and become the world's hegemon.
The above in-depth analysis of the development trajectory of Britain and France after the Glorious Revolution, especially highlighting the contrast between the two countries in the debt game, presents the profound influence of the system on the rise of the country. The following is a review of this analysis.
First of all, through the introduction of the historical background of Britain and France, the article clearly outlines their rise and fall after the Glorious Revolution. By comparing the data of the two countries in terms of national strength, taxation, political system, etc., readers can fully understand the reasons for the rise of Britain during this period. What is particularly commendable is that the article focuses on the issuance of government bonds and the differences between institutions, highlighting the decisive role of institutions in the fate of countries.
Secondly, this paper introduces the elements of the creditor's rights game into the analysis, highlighting the key contribution of borrowing capacity to the rise of the state. Through concrete examples, the reader can clearly see that the UK has successfully converted "personal borrowing" into "public debt" by introducing the Dutch government debt system, thus gaining an advantage in the international debt market. This profound institutional change provided a steady stream of financial support for Britain's rapid rise to military power. On the contrary, France's failure to overcome its institutional problems has made it credibility in the international debt market, which ultimately affects the development of its military power.
The article makes a strong critique of France under the monarchical system, and emphasizes its lack of an effective system to restrain the monarchy. Through the description of the wayward behavior of the French king, the reader has a deep understanding of the restrictions on the borrowing capacity of the French system. This is a revelation for the reader that the imperfection of the political system will not only affect domestic governance, but also have a profound impact on the country's position in international competition.
Finally, by discussing the key role of credit in borrowing, this paper provides readers with the intrinsic relationship between institutions and credit. The article uses the example of the introduction of the national debt system by the Habsburg emperors to clearly show how the national debt system successfully borrowed money through credit guarantees. This gives readers a deeper understanding of the shaping of credit by the system and the fundamental role of credit in national construction.
Overall, this article vividly illustrates the crucial role of institutions in the destiny of nations through an in-depth analysis of the history of Britain and France. The easy-to-understand writing style allows readers to easily understand historical events and think deeply about the role of institutional factors in the rise and fall of states. This not only provides readers with profound historical enlightenment, but also gives people a deeper understanding of the relationship between the system and the destiny of the country.
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