User:Andy 1One/Capitalism in the United States

Capitalism in the United States
After World War II, the United States entered an unprecedented period of economic growth. War production had completed the recovery from the Great Depression, and hundreds of thousands of manufacturing jobs were filled by soldiers returning from Europe and Asia. Companies such as GM were able to prosper due to a lack of international competition. The economies of Japan, Germany, and Italy were crippled by the war, and would take years to return to stability.

Many American minds were sent to these countries to assist with this process. Policies were implemented to encourage growth, and soon they were all back on their feet. By the mid-1960s, products from these countries were being exported, and soon they found their way to American shores. Sold at cheap prices, these high quality goods began to directly compete with those made in the U.S. As a result, in 1971 we imported more than we exported for the first time since 1893. This increased competition led to rises in prices here at home, thus creating the storm known as inflation.

President Nixon took steps to combat inflation, but these inevitably failed. He abolished the gold standard, allowing future devaluation of the dollar. In the spirit of détente, he also reestablished relations with China. This of course came at the expense of business, and we now had another country to compete with. The problem was exacerbated by the OPEC oil embargo, and America experienced its worst recession in 35 years. Nixon’s resignation, the failure of the Ford administration, and Jimmy Carter’s inability to address the Iran hostage crisis reduced the nation to its lowest prestige since the Great Depression.

Since 1980, we have seen unparalleled growth in the use of business and personal loans. Ironically, the loans issued by banks actually have saved the U.S. economy from total ruin. Without their help, businesses today would have had no capital. Homeowners would have had no way to purchase their homes. Consumers would have no cash to purchase products. With the collapse of American industry, the credit system was the only thing supporting our economy. With its collapse, we are now almost entirely reliant on government spending to support our GDP.

There are steps we can take to solve our current economic woes and restore the capitalistic prosperity of the 1950s. First, we must abolish our free trade policies and place heavy tariffs on imported goods, especially those from China. This will allow American industries to sell goods at newly competitive prices, therefore increasing profits. These profits will allow for economic expansion, increased jobs, and higher wages. Employees will then be able to pay off their debts, including their mortgages. That will in turn allow for the housing market to recover.

Second, we must restore our infrastructure and create new energy policies. Investment in transportation, communication, and sanitation will further create jobs and utilize American resources and goods. Increased use of alternative energy will allow us to sustain our own resources. We will then be able to start to export coal, petroleum, and natural gas out of the country. These efforts may also lead to economic instability in potentially hostile nations such as China and Iran.

Lastly, we must ensure the prosperity of future generations by implementing FDR's “Second Bill of Rights”. This program requires equal employment for all with a wage that easily covers the cost of living. It calls for the promotion of small business and the elimination of unfair foreign competition. It guarantees quality housing, medical care, and education to all citizens. Finally, it provides the expansion of Social Security, not its depletion.