The American Capitalist History, Essay Example

The American nation has been built on the foundation of freedom and individual rights. For this reason, the United States has been heralded as the land of endless opportunity, defining its economyas one of ultimate economic freedoms. These fundamental economic freedoms that are enshrined within the American constitution have enabled the economy to soar to the top and define it as the global center of business.

Positive Aspect of Capitalism in the Unites States

The American economy has managed to achieve such fetes as a result of the capitalist principles that define economic activity within the nation. These capitalist principles are responsible for the country’s unprecedented economic growth in the late 1990s. From 1991 to 2001, the Dot Com Bubble propelled the computer industry. During this time, the economy grew by 22.5% and GDP grew by 2.1%. This enabled the United States to position itself as the hub of computer technology, something that is seen in the present day global economy.

Negative Aspect of the Capitalism in the United States

The capitalist principles within the American economy have led to some of the worst economic recession as a result of greed and corruption. Capitalism encouraged elements of greed and corruption to infiltrate every sector of the economy, especially the finance and financial services industry. This is evident in the great recession of 2008 to 2009. Most banks employed illegal practices, trading and encouraging the trade of toxic assets, giving such assets high ratings while benefiting from such activities.

The most surprising aspect about American economic history is the manner in which the financial sector has been allowed to gain considerable power. Financial institutions have gained the power to directly and indirectly influence politics to gain a foothold in the creation and alteration of economic policy.

The Gilded Age and Modern Day America

The Gilded Age was one of one of the most prosperous eras in American economic history. I believe that the numerous elements of Gilded are playing out today owing to numerous factors. The current economic, political and social landscape in the United States depict numerous similarities to the Gilded. One of the most evident characteristics that modern day America has in common with this era is the industrial and technological improvements. The US has recently experienced a surge in technological advancements in industrial production, the field of medicine and the application of computer technology. Furthermore, the country currently experiences a huge disparity between the rich and the poor, characteristic of the golden age.

I believe that capitalism will survive owing to one factor. Capitalism protect human rights and freedoms, including economic freedoms. In order for capitalism to fall, this aspect has to fail in the first place. Global human rights movements are currently very strong and ensure that human rights, including economic freedoms such as the right to own property, are observed and protected. In order for another economic philosophy such as socialism and communism to replace capitalism, it would have to contend with human rights groups that have gained much foothold within governments. Fundamental human rights have become an important tool in conducting international trade. Nations that have failed to respect these rights usually face trade and economic sanctions, which are imposed by the international community.