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Critically discuss the Golden Age of Capitalism in the United States
The Golden Age of capitalism was a period of economic expansion that began after the end of Second World War and ended in the 1970s recession (Chang 59). It was during this era when the Bretton Woods monetary system malformed. The golden age was marked by economic richness in the mid-20th century, which occurred mostly in the Western countries. Following, was a period in which demand for goods and services detonated, and major social changes took place. During the war, women filled the labor gap while other people returned home. Nevertheless, a good number remained in the labor force irrespective of receiving unequal payments. However, race issues began to explode while the retiring Asian and African American militias were forced to return home. However, the African Americans and the Asians were unable to put up with the Jim Crow and segregation laws. In 1968, the nation experienced riots and people protested against unfair laws, policing, and economic segregation. However, Golden Age of Capitalism was linked to the development of new international organizations such as the International Monetary Fund (IMF), the United Nations Industrial Development Organization (UNIDO), and Marshall Plan that contributed to rebuilding developing countries in Western Europe.
Particularly in the United States, changes in both customs and law enhanced the power of organized labor which resulted in the legacy of depression. The country's position in trade improved slightly after the end of the Second World War rather than during the Great Depression. However, the Keynesian economists contend that boom recession occurred after the implementation of the Keynesian economic policies. However, unemployment was virtually eliminated in the advanced capitalist countries of Western Europe, US, and Japan. As a result, output fluctuations were less compared to the previous periods (Cornwall). The Keynesian fiscal policy improved government spending during recessions and minimized government spending during the boom. Moreover, increase in prices led to financial stability (REUSS). When the Second World War ended, Americans lived in fear that the subsequent decrease in military spending could expose them to harsh experiences they once suffered during the Great Depression. In contrary, constrained consumer demand powered strong economic development in the post-war period. In addition, the rapid growth of the postwar golden age was more dependent on different market forces. Thus, there was a need for more set norms, convention and informal laws necessary to coordinate the actions of social partners in the Western countries.
The Golden Age of Capitalism saw the growth of delocalization. Developing countries traded in industrial goods and services in exchange for locally produced commodities. After colonization, the post-colonial nations rejected the free market trades that had been imposed. It was impossible to discuss matters concerning the economic performance of developing countries after independence between 1945 and 1973. However, as new countries were emerging from decolonization, demand for guidance pertaining development policies increased as well. This resulted in new trade relations among countries. The United Nations deliberation considered the issue of economic stability and long-term development challenges with great depth. However, members of states such as China, Argentina, Egypt, and Mexico had an obligation to support development efforts. Development economics provided countries with practical guidelines for planning and implementing strategies. Developing countries provided a platform for thoughtful replication within the economic domain which contributed to the success of different national strategies. The other notable event was the designation by the general assembly. The international community was incorporated by the First United Nations Development Decade (FUDD), through their campaign to support the less developed countries they managed to stabilize the economy. In the 1950s, the concern with development arose in response to national development in the south and the Cold War. Colonialism had already prevailed in Africa during the early history of the United States.
What role did it play in the Cold War?
During the cold war, the military-industrial complex increased due to increased demand to produce military equipment to be supplied during the war. The United States was embroiled in a Cold War with the Soviet Union as the Iron Curtain descended across the European countries. The government invested erudite weapons in order to maintain substantial fighting capacity. During this era, there was a variety of technological equipment that had been developed such as jet engines, electronics, computers, and microwave for military purposes. When the wars ended, these technologies were newly invested for post-war reconstruction as well as to meet consumer went up during wartime. Additionally, there was a significant change in the international economic system that facilitated economic development. Bretton Woods established two key institutions of the post-war financial systems such as the International Monetary Fund (IMF), the International Bank for Reconstruction and Development (IBRD), and the Marshall plan. The IMF was well-known in the Western European countries because it provided access to temporary funds to countries with balance of payments predicaments, which may result in financial panic followed by a deep recession. The I...