American Capitalism Essay, Research Paper

Capitalism – ?An economic and political system in which a country?s trade and industry are controlled by private owners for profit, rather than by the state.?America was an ideal breeding ground for capitalism, a relatively new country, in need of young entrepreneurs to kick start it?s already buoyant economy. The country was an ideal place to get rich quick, an idea that inspired the immigrants that poured into it each year. In America it seemed you could turn your rags to riches in no time at all. It?s this idea that fuelled the American Dream Capitalism was motivated in the 20s by the Republican government. They believed in non-interference or ?laissez faire?, the policy of letting businesses regulate themselves and to have any caps in how far or how much they go. The government thought that businessmen could work best in a climate made by themselves, not coordinated by the government. Americans believed in rugged individualism, the fact that anyone could make a fortune if they put in enough hard graft. Republicans helped American capitalism prospering by introducing tariff barriers, making it that all goods coming from abroad had to taxed heavily before entering the country, meaning that prices in the USA for those products raised so the foreign companies could still make a profit. When presented with two items of similar quality, one with ultra-inflated prices from England, and one with a cheap price from America, it?s likely that a normal person would choose the cheap American home brand product. By doing this Republicans helped the idea of American capitalism to prosper. As well as being the place to make a fortune, America also signalled freedom from persecution, in whatever form in came in. People facing religious or political persecution, or just plain poverty came to America to alleviate themselves from negative aspects of life. This was an important part of the American dream as it made many immigrants cross the seas to seek this liberty. On the surface American capitalism seemed to be helping the country no-end. There were several visible indications of the prosperity. Mass production meant that technological advances such as washing machines and hovers became available to many families. The inflating wages helped to fund the new streak of consumerism that swept the country, Americas wages were far higher than any comparitable jobs over the world. New motor cars were popping up all over the place, thanks to Henry Ford, a figure often used to symbolise the American dream as he was so successful, and even today is a household name. A newly founded advertising industry worked it?s tricky magic amongst the susceptible citizens, making goods seem all the more glamorous. Easy credit helped in the purchase of the goods once a person was dedicated to enriching their life with it. For those who lived far from shops and arcades came mail order catalogues and travelling salesmen, meaning people all over America could enjoy the wonders of consumerism. Prosperity could also been seen in the low unemployment rates, helped considerably by the roaring construction industry, turning cities around America in bristling concrete porcupines. Over all this opulence was the booming stock market on Wall Street, rising to an all time high, representing all that was American capitalism, rapidly increasing from strength to strength, unfortunately building on the unsteady foundation of a dream.In 1928 the number of people living beneath the poverty line ? those who do not earn enough to buy basic food, clothing and shelter- increased to an estimated 42% of America?s populace. There were certain groups who suffered the most. Farm income went from an overall amount of $22 billion in 1919 down to $13 billion in 1928. Farmers suffered as new machinery such as combine harvesters made farming more efficient, but farming started to produce far more food than was needed. During the war the surplus had been sold to Europe, but now European farmers could start growing enough for their own needs again. The price of grain collapsed and brought ruin to many small farmers. Farm labourers also lost out as they either lost their jobs, as they could no longer be supported, or because they became redundant due to new machinery. Not all farmers suffered. Big mechanised farms did well. It was commonly the smaller and poorer farmers who lost out. New immigrants faced discrimination from employers. They took whatever work they could. A large number worked in construction but only where there was a construction boom, but constructor worker?s wages only rose 4% in the 20s as there was a ready supply of new immigrants ready if the existing ones complained about wages. The unemployment rate amongst new immigrants remained high during the 1920s The biggest concentration of blacks was in the southern states where many stayed after slavery was abolished. Many blacks made their journey north to find work in large industrial cities such as Detroit. Black workers faced discrimination and white workers were more likely to be taken. Car factories only hired blacks in small numbers, trying to operate on an all white policy. Older industries were undergoing modernisation in the 1920s. Workers in the raw material industries ? cotton, coal, tin and copper ? were suffering. There was overproduction and wages fell. Old textiles were also faced with competition by new artificial fibres such as Rayon. Textile workers were amongst the lowest paid in the country and many lost their jobs anyhow as mechanisation could do the job quicker, cheaper and more efficiently with only a minimum of staff. Basically, the rich got richer and the poor got poorer.All this inequality in society, the rich-poor divide was about to be brought to a dreadful reality. As the Wall Street stock market grew and grew it became more and more unstable. The average man on the street knew nothing of the mechanism of the stock market, not knowing that anything that rose to that height would have to fall eventually. People kept on buying stocks and shares, kept on investing on this idea of an American dream, the reverie that any man could become rich if they tried hard enough. As the market swelled some people knew what was inevitable. Once they had told a few people, and those people had told a few more the rumour of a crash only needs a little time before it actually occurs. The stock market relies on the trust of its investors, be they small investors or huge companies, and when that trust is dispirited it?s only a matter of time before it all comes falling down above their heads. As the speculation went out of control, and companies overproduced and no longer made any more money, the whole market collapsed, and when a towering monolith such as this falls, it?s going to make a sizable dent. It triggered off the great depression, people lost all their money, all jobs were stopped, property was taken away and life became a nightmare to all involved. Of course, some people survived relatively unscathed, but, as normal, those people were the rich.The whole concept of an American dream could have worked if the country had taken their time, realised that there was no rush, if companies had expanded slowly and if people hadn?t been so interested in the stock market. Of course all these problems came from the idea of an American dream and people, being only human, are selfish and want to have more money, and more money is what is offered in a system of capitalism. The American dream soon turned sour and turned into an American nightmare. To want extent was American capitalism successful in delivering ?The American dream? in the roaring twenties? Capitalism – ?An economic and political system in which a country?s trade and industry are controlled by private owners for profit, rather than by the state.?America was an ideal breeding ground for capitalism, a relatively new country, in need of young entrepreneurs to kick start it?s already buoyant economy. The country was an ideal place to get rich quick, an idea that inspired the immigrants that poured into it each year. In America it seemed you could turn your rags to riches in no time at all. It?s this idea that fuelled the American Dream Capitalism was motivated in the 20s by the Republican government. They believed in non-interference or ?laissez faire?, the policy of letting businesses regulate themselves and to have any caps in how far or how much they go. The government thought that businessmen could work best in a climate made by themselves, not coordinated by the government. Americans believed in rugged individualism, the fact that anyone could make a fortune if they put in enough hard graft. Republicans helped American capitalism prospering by introducing tariff barriers, making it that all goods coming from abroad had to taxed heavily before entering the country, meaning that prices in the USA for those products raised so the foreign companies could still make a profit. When presented with two items of similar quality, one with ultra-inflated prices from England, and one with a cheap price from America, it?s likely that a normal person would choose the cheap American home brand product. By doing this Republicans helped the idea of American capitalism to prosper. As well as being the place to make a fortune, America also signalled freedom from persecution, in whatever form in came in. People facing religious or political persecution, or just plain poverty came to America to alleviate themselves from negative aspects of life. This was an important part of the American dream as it made many immigrants cross the seas to seek this liberty. On the surface American capitalism seemed to be helping the country no-end. There were several visible indications of the prosperity. Mass production meant that technological advances such as washing machines and hovers became available to many families. The inflating wages helped to fund the new streak of consumerism that swept the country, Americas wages were far higher than any comparitable jobs over the world. New motor cars were popping up all over the place, thanks to Henry Ford, a figure often used to symbolise the American dream as he was so successful, and even today is a household name. A newly founded advertising industry worked it?s tricky magic amongst the susceptible citizens, making goods seem all the more glamorous. Easy credit helped in the purchase of the goods once a person was dedicated to enriching their life with it. For those who lived far from shops and arcades came mail order catalogues and travelling salesmen, meaning people all over America could enjoy the wonders of consumerism. Prosperity could also been seen in the low unemployment rates, helped considerably by the roaring construction industry, turning cities around America in bristling concrete porcupines. Over all this opulence was the booming stock market on Wall Street, rising to an all time high, representing all that was American capitalism, rapidly increasing from strength to strength, unfortunately building on the unsteady foundation of a dream.In 1928 the number of people living beneath the poverty line ? those who do not earn enough to buy basic food, clothing and shelter- increased to an estimated 42% of America?s populace. There were certain groups who suffered the most. Farm income went from an overall amount of $22 billion in 1919 down to $13 billion in 1928. Farmers suffered as new machinery such as combine harvesters made farming more efficient, but farming started to produce far more food than was needed. During the war the surplus had been sold to Europe, but now European farmers could start growing enough for their own needs again. The price of grain collapsed and brought ruin to many small farmers. Farm labourers also lost out as they either lost their jobs, as they could no longer be supported, or because they became redundant due to new machinery. Not all farmers suffered. Big mechanised farms did well. It was commonly the smaller and poorer farmers who lost out. New immigrants faced discrimination from employers. They took whatever work they could. A large number worked in construction but only where there was a construction boom, but constructor worker?s wages only rose 4% in the 20s as there was a ready supply of new immigrants ready if the existing ones complained about wages. The unemployment rate amongst new immigrants remained high during the 1920s The biggest concentration of blacks was in the southern states where many stayed after slavery was abolished. Many blacks made their journey north to find work in large industrial cities such as Detroit. Black workers faced discrimination and white workers were more likely to be taken. Car factories only hired blacks in small numbers, trying to operate on an all white policy. Older industries were undergoing modernisation in the 1920s. Workers in the raw material industries ? cotton, coal, tin and copper ? were suffering. There was overproduction and wages fell. Old textiles were also faced with competition by new artificial fibres such as Rayon. Textile workers were amongst the lowest paid in the country and many lost their jobs anyhow as mechanisation could do the job quicker, cheaper and more efficiently with only a minimum of staff. Basically, the rich got richer and the poor got poorer.All this inequality in society, the rich-poor divide was about to be brought to a dreadful reality. As the Wall Street stock market grew and grew it became more and more unstable. The average man on the street knew nothing of the mechanism of the stock market, not knowing that anything that rose to that height would have to fall eventually. People kept on buying stocks and shares, kept on investing on this idea of an American dream, the reverie that any man could become rich if they tried hard enough. As the market swelled some people knew what was inevitable. Once they had told a few people, and those people had told a few more the rumour of a crash only needs a little time before it actually occurs. The stock market relies on the trust of its investors, be they small investors or huge companies, and when that trust is dispirited it?s only a matter of time before it all comes falling down above their heads. As the speculation went out of control, and companies overproduced and no longer made any more money, the whole market collapsed, and when a towering monolith such as this falls, it?s going to make a sizable dent. It triggered off the great depression, people lost all their money, all jobs were stopped, property was taken away and life became a nightmare to all involved. Of course, some people survived relatively unscathed, but, as normal, those people were the rich.The whole concept of an American dream could have worked if the country had taken their time, realised that there was no rush, if companies had expanded slowly and if people hadn?t been so interested in the stock market. Of course all these problems came from the idea of an American dream and people, being only human, are selfish and want to have more money, and more money is what is offered in a system of capitalism. The American dream soon turned sour and turned into an American nightmare. To want extent was American capitalism successful in delivering ?The American dream? in the roaring twenties? Capitalism – ?An economic and political system in which a country?s trade and industry are controlled by private owners for profit, rather than by the state.?America was an ideal breeding ground for capitalism, a relatively new country, in need of young entrepreneurs to kick start it?s already buoyant economy. The country was an ideal place to get rich quick, an idea that inspired the immigrants that poured into it each year. In America it seemed you could turn your rags to riches in no time at all. It?s this idea that fuelled the American Dream Capitalism was motivated in the 20s by the Republican government. They believed in non-interference or ?laissez faire?, the policy of letting businesses regulate themselves and to have any caps in how far or how much they go. The government thought that businessmen could work best in a climate made by themselves, not coordinated by the government. Americans believed in rugged individualism, the fact that anyone could make a fortune if they put in enough hard graft. Republicans helped American capitalism prospering by introducing tariff barriers, making it that all goods coming from abroad had to taxed heavily before entering the country, meaning that prices in the USA for those products raised so the foreign companies could still make a profit. When presented with two items of similar quality, one with ultra-inflated prices from England, and one with a cheap price from America, it?s likely that a normal person would choose the cheap American home brand product. By doing this Republicans helped the idea of American capitalism to prosper. As well as being the place to make a fortune, America also signalled freedom from persecution, in whatever form in came in. People facing religious or political persecution, or just plain poverty came to America to alleviate themselves from negative aspects of life. This was an important part of the American dream as it made many immigrants cross the seas to seek this liberty. On the surface American capitalism seemed to be helping the country no-end. There were several visible indications of the prosperity. Mass production meant that technological advances such as washing machines and hovers became available to many families. The inflating wages helped to fund the new streak of consumerism that swept the country, Americas wages were far higher than any comparitable jobs over the world. New motor cars were popping up all over the place, thanks to Henry Ford, a figure often used to symbolise the American dream as he was so successful, and even today is a household name. A newly founded advertising industry worked it?s tricky magic amongst the susceptible citizens, making goods seem all the more glamorous. Easy credit helped in the purchase of the goods once a person was dedicated to enriching their life with it. For those who lived far from shops and arcades came mail order catalogues and travelling salesmen, meaning people all over America could enjoy the wonders of consumerism. Prosperity could also been seen in the low unemployment rates, helped considerably by the roaring construction industry, turning cities around America in bristling concrete porcupines. Over all this opulence was the booming stock market on Wall Street, rising to an all time high, representing all that was American capitalism, rapidly increasing from strength to strength, unfortunately building on the unsteady foundation of a dream.In 1928 the number of people living beneath the poverty line ? those who do not earn enough to buy basic food, clothing and shelter- increased to an estimated 42% of America?s populace. There were certain groups who suffered the most. Farm income went from an overall amount of $22 billion in 1919 down to $13 billion in 1928. Farmers suffered as new machinery such as combine harvesters made farming more efficient, but farming started to produce far more food than was needed. During the war the surplus had been sold to Europe, but now European farmers could start growing enough for their own needs again. The price of grain collapsed and brought ruin to many small farmers. Farm labourers also lost out as they either lost their jobs, as they could no longer be supported, or because they became redundant due to new machinery. Not all farmers suffered. Big mechanised farms did well. It was commonly the smaller and poorer farmers who lost out. New immigrants faced discrimination from employers. They took whatever work they could. A large number worked in construction but only where there was a construction boom, but constructor worker?s wages only rose 4% in the 20s as there was a ready supply of new immigrants ready if the existing ones complained about wages. The unemployment rate amongst new immigrants remained high during the 1920s The biggest concentration of blacks was in the southern states where many stayed after slavery was abolished. Many blacks made their journey north to find work in large industrial cities such as Detroit. Black workers faced discrimination and white workers were more likely to be taken. Car factories only hired blacks in small numbers, trying to operate on an all white policy. Older industries were undergoing modernisation in the 1920s. Workers in the raw material industries ? cotton, coal, tin and copper ? were suffering. There was overproduction and wages fell. Old textiles were also faced with competition by new artificial fibres such as Rayon. Textile workers were amongst the lowest paid in the country and many lost their jobs anyhow as mechanisation could do the job quicker, cheaper and more efficiently with only a minimum of staff. Basically, the rich got richer and the poor got poorer.All this inequality in society, the rich-poor divide was about to be brought to a dreadful reality. As the Wall Street stock market grew and grew it became more and more unstable. The average man on the street knew nothing of the mechanism of the stock market, not knowing that anything that rose to that height would have to fall eventually. People kept on buying stocks and shares, kept on investing on this idea of an American dream, the reverie that any man could become rich if they tried hard enough. As the market swelled some people knew what was inevitable. Once they had told a few people, and those people had told a few more the rumour of a crash only needs a little time before it actually occurs. The stock market relies on the trust of its investors, be they small investors or huge companies, and when that trust is dispirited it?s only a matter of time before it all comes falling down above their heads. As the speculation went out of control, and companies overproduced and no longer made any more money, the whole market collapsed, and when a towering monolith such as this falls, it?s going to make a sizable dent. It triggered off the great depression, people lost all their money, all jobs were stopped, property was taken away and life became a nightmare to all involved. Of course, some people survived relatively unscathed, but, as normal, those people were the rich.The whole concept of an American dream could have worked if the country had taken their time, realised that there was no rush, if companies had expanded slowly and if people hadn?t been so interested in the stock market. Of course all these problems came from the idea of an American dream and people, being only human, are selfish and want to have more money, and more money is what is offered in a system of capitalism. The American dream soon turned sour and turned into an American nightmare.