Action in adversity: Responses to unemployment in Britain and Germany

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Abstract
A ‘satisficing’ model of response to adversity is used to compare the reaction of Britain and Germany to the common stimulus of large and visible increases in structural unemployment since the mid‐1970s. Initially, both countries responded similarly, spending lots more money on existing programmes. However, as dissatisfaction persisted, responses differed: British governments sought to achieve satisfaction by a trial‐and‐error search, introducing (and repealing) many programmes. By contrast, Germany tried virtually no new measures. The conclusion considers why the two governments should respond differently. It rejects explanations of economic differences or party differences. Institutional differences linked to legal requirements and budgets ‐ reducing flexibility in Germany and facilitating it in Britain ‐provide a better explanation, indicating that state structure is an important independent influence on the capacity of a government to respond to signals of dissatisfaction.

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