Topic #3: What has been the trajectory of American capitalism from the Gilded Age through the Clinton presidency? How did it change over time?
One thing that is certain is that American capitalism has changed drastically over the years. From industrial steel plants and oil giants, to modern companies like Wal-Mart and Apple. However, a general overlook at the basis of capitalism, shows that it has gone full circle. Capitalism was based on a theory of Laissez-faire, meaning little intervention. But over the course of American history, there have been periods where government has become more prominent, and then where it has minimal intervention. From the Gilded Age, through the great depression and right up to the Reagan/Clinton era, American …show more content…
There was little federal intervention, as business leaders like Andrew Carnegie and John D. Rockefeller were able to build enormous sums of wealth through their companies. There were no personal or corporate income taxes, and these business superpowers grew without limitation. One aspect that speaks volumes about the type of capitalism going on was the cutthroat completion. Companies battled for the market share and tried to bring order to the hectic marketplace, but their various attempts often failed as individual companies became obsessed with maximizing profits. Companies battled to control entire industries and become monopolies. At this time government intervention was seen as a threat to liberty. When demands by workers to enforce an eight-hour workday arose in order to protect the laborers, people called it a misuse of political power. It is interesting to see how free and unrestrained the economy was, and if this would last. In this era, government intervention took a back seat as individualism drove the economy …show more content…
Ronald Reagan trimmed the welfare state and got back to limited government intervention. Reagan trimmed taxes as he explained that, “the right to earn your own keep and keep what you earn” was “what it means to be free”(Page 1050). Reagan believed that by cutting taxes Americans would work harder, as they would be keeping more of their money. In addition, he belived everyone would benefit from increased business profits. Bill Clinton completed Reaganism, and continued the era of small governmet. In his 1996 State of the Union Address he stated that the “era of big government is over”(Class Notes). He too wanted to pull the government back and let capitalism naturally take over. These presidents ratified the fact thatlLaissez-faire was back. This era brought back similar images of The Gilded Age, where greed pushed the economy. Individualism again triumphed and government intervention was scaled
One thing that is certain is that American capitalism has changed drastically over the years. From industrial steel plants and oil giants, to modern companies like Wal-Mart and Apple. However, a general overlook at the basis of capitalism, shows that it has gone full circle. Capitalism was based on a theory of Laissez-faire, meaning little intervention. But over the course of American history, there have been periods where government has become more prominent, and then where it has minimal intervention. From the Gilded Age, through the great depression and right up to the Reagan/Clinton era, American …show more content…
There was little federal intervention, as business leaders like Andrew Carnegie and John D. Rockefeller were able to build enormous sums of wealth through their companies. There were no personal or corporate income taxes, and these business superpowers grew without limitation. One aspect that speaks volumes about the type of capitalism going on was the cutthroat completion. Companies battled for the market share and tried to bring order to the hectic marketplace, but their various attempts often failed as individual companies became obsessed with maximizing profits. Companies battled to control entire industries and become monopolies. At this time government intervention was seen as a threat to liberty. When demands by workers to enforce an eight-hour workday arose in order to protect the laborers, people called it a misuse of political power. It is interesting to see how free and unrestrained the economy was, and if this would last. In this era, government intervention took a back seat as individualism drove the economy …show more content…
Ronald Reagan trimmed the welfare state and got back to limited government intervention. Reagan trimmed taxes as he explained that, “the right to earn your own keep and keep what you earn” was “what it means to be free”(Page 1050). Reagan believed that by cutting taxes Americans would work harder, as they would be keeping more of their money. In addition, he belived everyone would benefit from increased business profits. Bill Clinton completed Reaganism, and continued the era of small governmet. In his 1996 State of the Union Address he stated that the “era of big government is over”(Class Notes). He too wanted to pull the government back and let capitalism naturally take over. These presidents ratified the fact thatlLaissez-faire was back. This era brought back similar images of The Gilded Age, where greed pushed the economy. Individualism again triumphed and government intervention was scaled