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The 1920s saw a mass rise in consumerism and production that would mark a new wave of daily life in the United States. Electrification, Ford's assembly line, marketing and advertising, and installment credit helped improve conditions for many middle-class individuals. Department stores, household products, radios, and clothing all became accessible and highly sought after. Mass markets, advertisements, and debt evolved out of the era, all of which are seen in capitalism today (Balleisen, 2014). -
On October 29, 1929, the New York Stock Exchange collapsed, triggering the most historic economic depression. The causes of the Great Depression included a culture of buying on margin, credit, the goal of returning to the gold standard, speculation, agricultural surpluses, and a lack of regulation within the financial sector. Unemployment rates, hunger, and misery spread quickly and exposed the true capabilities of unregulated capitalism (Levy, 371-384). -
When FDR was elected, he aimed to make changes to lift the United States out of the Great Depression. Within his first 100 days in office, he implemented various policies to regulate the financial sector, stabilize the economy, and restore public confidence. The creation of the Securities and Exchange Commission, the National Housing Act, and the Public Works programs are just some examples of policies from the New Deal. The ND helped transition the U.S. into a mixed economy (Kennedy, 251). -
When Japan struck Pearl Harbor, the U.S. entered WWII. Military Mobilization brought factories back to life, new jobs became available, women entered the workforce in high numbers, and productivity soared. The war illustrated the possibilities of American industry and pulled the U.S. fully out of an economic depression. The war also pulled the New Deal infrastructure into full effect and pushed the U.S. government to be known as "big government," with countless economic regulations (Levy, 461). -
This Act helped to create a large network of connecting highways throughout the United States. This was the largest public work project at the time, helping to transport goods, people, and troops, contributing to the growth of the National Market in the United States, and promoting efficiency. The Highway Trust Fund was also created, placing a gasoline tax to be utilized for roadwork, which is still in place today. The Act allowed for the rise of suburbia and new industries (National Archives). -
During the Israeli-Arab War, the OPEC Arab countries refused to export petroleum and cut oil production for the United States. This was a response to the nations supporting Israel, and the United States had funded the Israeli military in hopes of forcing peace discussions. The embargo was exacerbated by the already unstable oil industry, forcing the U.S. government to examine its dependence on foreign goods. Domestic energy and Middle East relations became a priority (Office of the Historian). -
President Ronald Reagan focused on supply-side economics. Tax cuts, deregulation, and less government spending marked the new Republican way. The belief was that if taxes were lowered, businesses and individuals would have more money to spend, boosting the economy. This moved the economy away from Keynesian and mixed ideals, with a push for a smaller federal government. Under these policies, inequality and the national debt expanded significantly, and are still large issues (Weidenbaum, 1-12). -
The Web dramatically changed everyday life and helped to restructure the global economy. Digital Services, consumption, and commodities made access for consumers and the growth of businesses reach unprecedented levels. Companies such as eBay, Amazon, Airbnb, and Spotify have emerged as examples of platforms that accumulate large amounts of capital digitally. The internet altered manufacturing practices and the finance sector, aiding in the reconfiguration of capital globally (Zook, 1-10). -
In 2008, the housing market in the U.S collapsed, leading to a large-scale financial crisis. "The Housing Bubble," credit, low interest rates, subprime mortgages, and risky investment products (MBs and CDOs), burst, exposing poor assets and creating an interbank freeze. Lehman Brothers bank failed, triggering massive panics, and the U.S. government was forced to provide bailouts and buy toxic assets. A lack of regulation in multiple industries is blamed for the global recession(Nelson 372-385). -
The COVID pandemic led to questioning capitalist systems in relation to inequality, government intervention, and the global supply chain. The debate about healthcare as a right vs. a privilege in the capitalist system was exaggerated by the crisis. Many capitalist governments became involved with private industry, going against the policies they advocate. COVID led to decreased buying and selling of goods and services, some argue, showing the instability of the market as a whole (Bagus, 1-4).