Capitalism: concepts, history, and economic theory

Capitalism

The end of the Civil War represented for the United States one of the most challenging eras in its history. On the one hand, during this period the U.S. had gained independence and unity and was then a sovereign country; on the other hand, it experienced one of the most flourishing economic periods of its history. However, in terms of the economic situation, the start of the 20th century would mark the most serious crisis of the United States and of the world. The 1929 economic crack represented a difficult time in its history and it was only FD Roosevelt that would get the U.S. out of the economic slump.

One of the main reasons for which the Great Depression took place was the way in which the U.S. economy developed especially after the First World War. In this sense, the U.S. had been one of the victorious parts of the First World War, it in economic terms it was the sole winner of the war. By the end of the conflagration, the U.S. had established itself as the main international actor on the economic market because it was the only one who could offer financial help to countries such as Great Britain or Germany (Modern American Poetry, n.d.). However, the massive economic development of the 20s in the United States had no correspondent in terms of markets and the goods produced in the United States exceeded the actual demand from abroad. Therefore, at a certain point the industry of the United States tended to produce less and unemployment became a regular state of affairs. More precisely, "by 1932, U.S. manufacturing output had fallen to 54% of its 1929 level, and unemployment had risen to between 12 and 15 million workers, or 25-30% of the workforce" (Modern American Poetry, n.d.).

This situation had an overwhelming effect on the economies around the world because European ones in particular were dependent on that of the United States. In this sense, Germany, Great Britain, and France were deeply affected by the crisis which lasted well into the third decade of the century.

For the United States however, the coming in power of President Franklin Delano Roosevelt represented the solution for the reemergence of the economy and of the social life. More precisely, the program called "The New Deal" managed to reassess the priorities of the United States and give a different direction for the economy of the country. The program in itself included several aspects which were carefully taken into consideration. Therefore, on the one hand, the banking system was dealt with; on the other hand, taking into account the large number of unemployed people certain social measures were taken that would reduce it.

The banking system was the backbone of the economy and when the crisis took place, the entire system suddenly failed and measures had to be taken in order to stop the further depreciation of the system. Thus, "based on the assumption that the power of the federal government was needed to get the country out of the depression, the first days of Roosevelt's administration saw the passage of banking reform laws, emergency relief programs, work relief programs, and agricultural programs" (the Library of Congress, 2004).

In terms of unemployment, a new program was introduced which aimed at reducing the number of people without jobs. The Civilian Conservation Corps represented an initiative with two aims. On the one hand, it offered young people in particular new jobs, and on the other hand it fought against erosion of the soil, as the plan had initially been. More precisely "Accepting the Presidential nomination on July 1, 1932, New York Governor Roosevelt planned a fight against soil erosion and declining timber resources, utilizing the unemployed of large urban areas" (Civilian Conservation Corps Alumni, n.d). This was a useful endeavor as it helped the unemployment rate and the environment at the same time because it offered the possibility of the plantation of over 3 billion trees in less than ten years (Civilian Conservation Corps Alumni, n.d).