essay about capitalism in the usa 1900 to 1940

Ages of American capitalism: a history of the United States

A leading economic historian traces the evolution of American capitalism from the colonial era to the present—and argues that we’ve reached a turning point that will define the era ahead.

Today, in the midst of a new economic crisis and severe political discord, the nature of capitalism in United States is at a crossroads. Since the market crash and Great Recession of 2008, historian Jonathan Levy has been teaching a course to help his students understand everything that had happened to reach that disaster and the current state of the economy, but in doing so he discovered something more fundamental about American history. Now, in an ambitious single-volume history of the United States, he reveals how, from the beginning of U.S. history to the present, capitalism in America has evolved through four distinct ages and how the country’s economic evolution is inseparable from the nature of American life itself.

The Age of Commerce spans the colonial era through the outbreak of the Civil War, a period of history in which economic growth and output largely depended on enslaved labor and was limited by what could be drawn from the land and where it could be traded. The Age of Capital traces the impact of the first major leap in economic development following the Civil War: the industrial revolution, when capitalists set capital down in factories to produce commercial goods, fueled by labor moving into cities. But investments in the new industrial economy led to great volatility, most dramatically with the onset of the Great Depression in 1929. The Depression immediately sparked the Age of Control, when the government took on a more active role in the economy, first trying to jump-start it and then funding military production during World War II. Skepticism of government intervention in the Cold War combined with recession and stagflation in the 1970s led to a crisis of industrial capitalism and the withdrawal of political will for regulation. In the Age of Chaos that followed, the combination of deregulation and the growth of the finance industry created a booming economy for some but also striking inequalities and a lack of oversight that led directly to the crash of 2008.

In Ages of American Capitalism, Jonathan Levy proves that, contrary to political dogma, capitalism in the United States has never been just one thing. Instead, it has morphed throughout the country’s history—and it’s likely changing again right now.

Levy, Jonathan

Random House

History11 - Capitalism: The American Experience 1907-1941: Overview

• Reconstruction Era
• Progressive Era
• Immigration
• USA Enters the War 1917
• Society & Culture
• Business & Politics
• Wall Street Crash
• FDR & New Deal
• Foreign Policy

Student Course Outline

• AC YR 11 MODERN HISTORY COURSE OUTLINE 2022/23

Course Focus

• Rise of capitalism in the USA- railways, post Civil-War reconstruction, immigrant labour, oil, mass production
• Role and impact of significant individuals
• Key ideas: capitalism, laissez-faire, consumerism, individualism, limited government, economic liberty, American Dream
• Impact of WW1, the 1920s, WWII until 1941 on American Capitalism; the growth of consumerism, shaping of American values: film, fashion, prohibition and the Jazz Age.
• Causes of the Great Depression, consequences for groups, effectiveness of political response: New Deal and impact upon capitalism
• Impact of capitalism upon African Americans, urban workers, rural workers, immigrants, industrialists, Native Americans; reasons for division
• Significance of capitalism in the period compared with other key ideologies, in particular, communism.

To be considered throughout the unit:

• External forces/International Relations
• Social/Cultural
• Practise USA Docs.
• Next: 1860-1907 >>
• Last Updated: Mar 13, 2024 4:30 PM
• URL: https://libguides.aquinas.wa.edu.au/capitalism

You are using an outdated browser. Please upgrade your browser or activate Google Chrome Frame to improve your experience.

HISTORY Gr. 11 T1 W5: Capitalism in USA 1900-1940

Capitalism in USA 1900-1940

Do you have an educational app, video, ebook, course or eResource?

Contribute to the Western Cape Education Department's ePortal to make a difference.

Home Contact us Terms of Use Privacy Policy Western Cape Government © 2024. All rights reserved.

• International
• Schools directory
• Resources Jobs Schools directory News Search

Capitalism in America 1900-1940

Subject: History

Age range: 16+

Resource type: Unit of work

Last updated

8 April 2024

• Share through email
• Share through twitter
• Share through linkedin
• Share through facebook
• Share through pinterest

Study material to help understand Capitalism in the USA 1900-1940

Capitalism in America during the period from 1900 to 1940 saw significant transformations, characterized by rapid industrialization, economic expansion, and social change. The early 20th century marked the rise of large corporations, such as Standard Oil and U.S. Steel, which dominated industries like oil, steel, and railroads, leading to concerns about monopolistic practices. The era witnessed the emergence of the assembly line and mass production techniques, epitomized by Henry Ford’s Model T automobile, which revolutionized manufacturing and consumer culture.

However, this period was also marked by economic volatility, including the Panic of 1907 and the Great Depression of the 1930s. The stock market crash of 1929 triggered a severe economic downturn, leading to widespread unemployment, poverty, and social unrest. In response, President Franklin D. Roosevelt implemented the New Deal, a series of government programs aimed at stimulating economic recovery, regulating financial markets, and providing relief to those affected by the Depression.

Despite these challenges, capitalism in America during this period fostered innovation, entrepreneurship, and economic growth, laying the groundwork for the country’s emergence as a global economic powerhouse. However, it also raised questions about income inequality, labor rights, and the role of government in regulating the economy, debates that continue to shape economic policy and social discourse in the United States today.

Tes paid licence How can I reuse this?

Your rating is required to reflect your happiness.

It's good to leave some feedback.

Something went wrong, please try again later.

This resource hasn't been reviewed yet

To ensure quality for our reviews, only customers who have purchased this resource can review it

Report this resource to let us know if it violates our terms and conditions. Our customer service team will review your report and will be in touch.

Not quite what you were looking for? Search by keyword to find the right resource:

• Society and Politics
• Art and Culture
• Biographies
• Publications

History Grade 11 - Topic 2 Essay Questions

Essay Question:

To what extent did Roosevelt’s New Deal succeed in mitigating the negative effects of the Great Depression in USA in the 1930’s?  Present an argument in support of your answer using relevant historical evidence. [1]

Introduction:

On 29 October 1929 (also known as “Black Tuesday”), the United States (US) stock market crashed which initiated the Great Depression. [2]   After winning the US elections and taking office in 1933, President Franklin D. Roosevelt sought to bring economic relief to the US during the 1930’s by implementing a series of reforms and restructures in what he called the ‘New Deal’. [3]   Although the ‘New Deal’ succeeded somewhat in relieving economic situations on a macro-level, the “New Deal”, in the long run, is considered a failure as it did not ultimately succeed in what it was set out to do, which was to recover the economy from its “depressed state”. [4]   This statement will be discussed by analyzing the two phases of the “New Deal”, as well as discussing the effects of some of the relief, recovery and reform programs implemented.

The First Hundred Days

When analyzing the legacy of the “New Deal”, it is important to understand that there were two phases of the deal, namely the “First New Deal” and the “Second New Deal”.  The First New Deal consisted mainly of the first three months of Roosevelt’s presidency and is referred to as the “hundred days”. [5]   Within the first hundred days, various relief programs such as the “Federal Emergency Relief Administration” (FRA), the “Civilian Conservation Corps” and the “Agricultural Adjustment Act” were implemented in order to create employment opportunities for Americans as well as providing some extent of economic relief for struggling citizens. [6]

Another significant program that was implemented during the hundred days, was the “National Industrial Recovery Act” (NIRA).  This recovery act allowed working Americans to unionize and in a sense bargain for better working conditions, as well as wages. [7]   Roosevelt felt that a significant part of the recovery process will come from decreasing competition through using set prices, wages and commodities. [8]   Mixed reviews came from the implementation of these recovery acts, as many felt that corporate heads were being disadvantaged by the state, and in some instance some corporations felt as though their competition became the US government itself. [9]   However, on the larger part, many felt that the hundred days and the “First New Deal” was relatively successful as it was marked by a decrease in unemployment and the stabilization of US banks.

The Second New Deal

In 1935, Roosevelt decided that the New Deal should take a more aggressive approach in the attempt to diminish the Great Depression. [10]   This phase is known as the Second New Deal.  One of the more prominent acts implemented was the “Social Security” Act which provided the elderly and widowed people with some financial support, allowed some unemployment and disability compensation and set a framework or minimum wages and maximum work hours. [11]   Furthermore, the “Works Progress Administration” (WPA) was implemented to provide the unemployed with opportunities in the public sector.  These opportunities included building bridges, schools and roads. [12]   To some extent, the Great Deal built a platform for more financial security and opportunity for the American citizens during the onslaught of the Great Depression with its housing, employment and financial interventions. [13]

Criticism of the New Deal

When analyzing some of the programs and acts implemented by the Great Deal, one also has to mention points of criticism.  One of the more popular points of criticism stems from the “interventionalist” and anti-competitive nature of the New Deal. [14]   Larger companies and the Supreme Court also felt that some of the reform initiatives were unconstitutional and did not go through the right channels to implement reform acts. [15]   However, with this criticism in mind, the main reason why the New Deal was deemed unsuccessful, is simply because it did not achieve what it set out to do.  The American economy and employment rates did not recover enough for the New Deal to have remedied the effects of the Great Depression.  Rather, American entrance into the Second World War stimulated more economic growth than the New Deal. [16]

Therefore, one could say that the New Deal mitigated the effects of the Great Depression to an extent where it improved the employment rate from 25% of 1933 to 17% in 1939. [17]   One could also say that some of the relief and reform acts were deemed successful as some of them, such as the Social Security Act, still remains today. [18]   The New Deal also led to a, albeit short-lived, coalition between “white working people, African Americans and left-wing intellectuals”. [19]   Many also argue that the New Deal built a surface for the future economy of America post-World War Two. [20]   However, with regards to the mitigation of the Great Depression itself, the New Deal ultimately did not succeed in ending the Great Depression and its effects.

This content was originally produced for the SAHO classroom by Sebastian Moronell, Ayabulela Ntwakumba, Simone van der Colff & Thandile Xesi.

[1] National Senior Certificate.: “Grade 11 November 2017 History Paper 1 Exam,” National Senior Certificate, November 2017.

[2] M, Johnston.: “The Economic Effects of the New Deal,” Investopedia [online].  Accessed 20 March 2021 ( https://www.investopedia.com/articles/investing/011116/economic-effects-new-deal.asp ).

[3] History.  Editors of History.: “New Deal,” History [online].  Accessed 20 March 2021 ( https://www.history.com/topics/great-depression/new-deal ).

[4] Johnston, M.: “The Economic Effects of the New Deal,” Investopedia [online].  Accessed 20 March 2021 ( https://www.investopedia.com/articles/investing/011116/economic-effects-new-deal.asp ).

[5] Britannica, T. Editors of Encyclopaedia.: “New Deal,” Encyclopedia Britannica [online].  Accessed on 20 March 2021 ( https://www.britannica.com/event/New-Deal ).

[6] Fiorillo, S.: “What were the New Deal Programs and what did they do?” The Street [online].  Accessed on 24 March 2021 ( https://www.thestreet.com/politics/new-deal-programs-14861940 ).

[7] History.  Editors of History.: “New Deal,” History [online].  Accessed 20 March 2021 ( https://www.history.com/topics/great-depression/new-deal ).

[8] Fiorillo, S.: “What were the New Deal Programs and what did they do?” The Street [online].  Accessed on 24 March 2021 ( https://www.thestreet.com/politics/new-deal-programs-14861940 ).

[9] J. Green.: “The New Deal:  crash Course US History #34,” Crash Course [YouTube Online].  Accessed on 23 March 2021 ( https://www.youtube.com/watch?v=6bMq9Ek6jnA&t=380s ).

[10] History.  Editors of History.: “New Deal,” History [online].  Accessed 20 March 2021 ( https://www.history.com/topics/great-depression/new-deal ).

[11] Britannica, T. Editors of Encyclopaedia.: “New Deal,” Encyclopedia Britannica [online].  Accessed on 20 March 2021 ( https://www.britannica.com/event/New-Deal ).

[12] History.  Editors of History.: “New Deal,” History [online].  Accessed 20 March 2021 ( https://www.history.com/topics/great-depression/new-deal ).

[13] D.M. Kennedy.: “What the New Deal Did,” Political Science Quarterly, (124), (2), 2009, pp. 265-267.

[14] M, Johnston.: “The Economic Effects of the New Deal,” Investopedia [online].  Accessed 20 March 2021 ( https://www.investopedia.com/articles/investing/011116/economic-effects-new-deal.asp ).

[15] History.  Editors of History.: “New Deal,” History [online].  Accessed 20 March 2021 ( https://www.history.com/topics/great-depression/new-deal ).

[16] History.  Editors of History.: “New Deal,” History [online].  Accessed 20 March 2021 ( https://www.history.com/topics/great-depression/new-deal ).

[17] Johnston, M.: “The Economic Effects of the New Deal,” Investopedia [online].  Accessed 20 March 2021 ( https://www.investopedia.com/articles/investing/011116/economic-effects-new-deal.asp ).

[18] Fiorillo, S.: “What were the New Deal Programs and what did they do?” The Street [online].  Accessed on 24 March 2021 ( https://www.thestreet.com/politics/new-deal-programs-14861940 ).

[19] History.  Editors of History.: “New Deal,” History [online].  Accessed 20 March 2021 ( https://www.history.com/topics/great-depression/new-deal ).

[20] D.M. Kennedy.: “What the New Deal Did,” Political Science Quarterly, (124), (2), 2009, p. 267.

• Britannica, T. Editors of Encyclopaedia.: “New Deal,” Encyclopedia Britannica [online], January 2021.  Accessed on 20 March 2021 ( https://www.britannica.com/event/New-Deal ).
• Fiorillo, S.: “What were the New Deal Programs and what did they do?” The Street [online].  Accessed on 24 March 2021 ( https://www.thestreet.com/politics/new-deal-programs-14861940 ). 
• Green, J.: “The New Deal:  Crash Course US History #34,” Crash Course [online].  Accessed on 24 March 2021 ( https://www.youtube.com/watch?v=6bMq9Ek6jnA&t=391s ).
• History.  Editors of History.: “New Deal,” History [online], November 2021.  Accessed 20 March 2021 ( https://www.history.com/topics/great-depression/new-deal ).
• Johnston, M.: “The Economic Effects of the New Deal,” Investopedia [online], January 2021.  Accessed 20 March 2021 ( https://www.investopedia.com/articles/investing/011116/economic-effects-new-deal.asp ).
• Kennedy, D.M.: “What the New Deal Did,” Political Science Quarterly, (124),(2), 2009, pp. 251-268.

Return to topic: Capitalism in the USA 1900 - 1940

Return to SAHO Home

Return to History Classroom

Collections in the Archives

Know something about this topic.

Towards a people's history

• Find Flashcards
• Why It Works
• Tutors & resellers
• Content partnerships
• Teachers & professors
• Employee training

Brainscape's Knowledge Genome TM

Entrance exams, professional certifications.

• Foreign Languages
• Medical & Nursing

Humanities & Social Studies

Mathematics, health & fitness, business & finance, technology & engineering, food & beverage, random knowledge, see full index, chapter 2: the capitalist boom of the 1920s: strengths and weaknesses in the us economy flashcards preview, history topic 2: capitalism in the usa 1900-1940 > chapter 2: the capitalist boom of the 1920s: strengths and weaknesses in the us economy > flashcards.

Strengths in the US economy

The capitalist boom in the 1920s

at the beginning of the 20th century, the US emerged as the worlds leading industrial power

• it was a huge country, with vast fertile plains, and many agricultural food crops were grown
• it had large supplies of natural resources such as coal, iron, and oil which were used in factories
• it had a big population, with many recent immigrants who were prepared to work hard and accept low wages which kept the cost of production low

Impact of WW1 1914-18

WW1 was another reason why the American economy and its industries grew rapidly at this time. American industries and banks supplied the European allies with the vital food, weapons, goods, and money they need to fight Germany. America also took over Europes overseas markets. During the war European trade was disrupted. By the end of the war, the USA had become the creditor nation European countries owed it 300 million dollars

Republican leaders and policies

In the 1920s, the US was governed by the republican party. President Warren Harding and President Calvin Coolidge both believed that government should not intervene in the economy should leave businesses alone to do their job Calvin Coolidge was vice president when Warren Harding was president. Harding died in 1923 while he was still president and Coolidge automatically became president

The Republican government in the 1920s

• introduced import tariffs which made it expensive to import foreign goods into the US which protected American industry and encouraged Americans to buy goods produced in America which helped the economic boom. But, foreign countries retaliated by placing similar tariffs on US goods which made it difficult for the US to sell its goods overseas and contributed to the problem of overproduction by the end of 1920
• Cut taxes so that people would have more money to spend and the wealthy would reinvest their money in the industry
• allowed trusts to develop. these were large corporations that joined together to form a single company which then controlled all the trade in a single product
• they did not approve of trade unions because they believed they interfered with the effective running of businesses. Employers were encouraged not to allow the formation of trade unions. They were also allowed to use violence to crush strikes which resulted in trade union membership declined in the 1920s meaning that most industries were able to pay workers low wages and force them to work long hours

New technologies and innovations

The US experienced a consumer revolution in the 1920s. Due to the economic boom, Americans bought more goods. The government allowed businesses to exploit the country’s vast natural resources to produce steel, chemicals, oil, machinery. These products became the basis of an enormous boom in consumer goods

new technologies and innovations included what?

• the start of radio
• The widespread availability of electricity which stimulated demand for electrical goods such as vacuum cleaner, refrigerator and washing machine
• the movie industry and the development of talking pictures
• the car industry, which pioneered mass-production

it also caused a boom in steel, glass, rubber, petrol, petrol stations, and insurance

Advertising and hire purchase

played a major role in the growth of American consumerism. Mass advertising made people feel luxury items were necessities. mail-order catalogs, posters, the radio and movie commercials all encouraged to buy them on credit hire purchase schemes were introduced, where people could buy goods and pay for them weekly installments, paying interest on the loans which encouraged people to get into debt, owing money to the banks and finance companies

Unit 2: Weaknesses in the US economy

5 percent of Americans received one-third of all personal income in the country, while 60% percent of families lived below the poverty line and could only afford the bare necessities

Problems of farmers

Agriculture was the worst affected industry of the 1920s

Farmers had done very well during world war one cuz they were able to sell their produce in European markets nut after the war, Europe began to increase its food production. Tariff barriers against American grain made it expensive to import and international demand for American wheat declined Overproduction was at the heart of farmers’ problems. |mporved machinery, especially the combine harvester and better fertilizers made American culture extremely efficient As a result, farmers were producing more than they could sell. The price of wheat collapsed and many farmers could not pay back the loans they had taken out to buy land and machinery. They lost their land and livelihood

Problems of African Americans

Black working on farms were the first to be laid off when the agricultural crisis hit. In the southern states, where more than 75% of blacks lived, they faced legalised discrimination under the Jim Crow laws. They were forced to use separate public facilities, go to separate and inferior schools and live in separate neighborhoods. They were also victims of the Ku Klux Klan, a group of white supremacists who use violence and intimidation to make sure the blacks did not forget their low social standards. The kkk also persecuted Catholics and JEWS

Who were the Ku Klux Klan

a group of white supremacists who use violence and intimidation to make sure the blacks did not forget their low social standards.

Problems of Native Americans

Native Americans also failed to benefit from the prosperity of the 1920s. The majority of the Native Americans were forced to live on reservations. These were areas set aside by the American government and were usually dry areas with poor soil which made it very difficult to make a living off the land. Land on reservations was a continual struggle with very few opportunities

Prejudice in America

Between 1900 and 1914, more than 13 million immigrants arrives in the USA from southern or easter Europe. In the 1920s the US government began to restrict the flow of immigrant who were mostly catholics and Jews and included Italians poles and Greeks. There were a number of reason why the immigrants were made to feel unwelcome. There were growing religious and racial prejudice and the government feared that new immigrants would take jobs from long established Protestant Americans. In addition, may new immigrants had socialist ideas and supported trade unions, which was seen as un American

Decks in History Topic 2: Capitalism In The USA 1900-1940 Class (7):

• Chapter 1: What Is Capitalism
• Chapter 2: The Capitalist Boom Of The 1920s: Strengths And Weaknesses In The Us Economy
• Chapter 3: American Society In The 1920s
• Chapter 4: The Causes Of The Wall Street Crash Of 1929 And Its Economic And Social Impact
• Chapter 5: The Election Of President F.D Roosevelt And His New Deal
• Chapter 6; Impact Of The Crisis Of Capitalism In The Usa On Other Parts Of The World
• Chapter 7: The Cyclical Nature Of Capitalism
• Corporate Training
• Teachers & Schools
• Android App
• Help Center
• Law Education
• All Subjects A-Z
• All Certified Classes
• Earn Money!

Snapsolve any problem by taking a picture. Try it in the Numerade app?