Capitalism refers to a form of economic system whereby the dynamics of the market are primarily controlled by individuals or privately owned corporations. Capitalist environment provides a free market and there is no government intervention in terms of means of production and distribution, since more power is vested in the economic system rather than the political system. It usually involves a small group of people who control the market trends and make significant economic decisions (Louis, 1985). The capitalist economy of the US between the 1865 and 1930 laid a framework for the present American economic system.
America’s economy was at the peak of capitalism during the late 19th century and early 20th century. During this period, several industries in the US began operating along capitalist lines (Louis 1985). Even the agricultural sector was subjected to the increasing forces of capitalism. Capitalism did not appeal to some Americans during the times and this resulted to the rise of anti-capitalist movements. One of the factors that significantly resulted in capitalism resistance was the rise of socialism in America. One of the organizations that were opposed to capitalism was the American labor movement. The objective of the union was to protect the rights of the workers, who were being oppressed by the capitalists in terms of low wages and poor working conditions and poor living standards. These labor movements were mostly German –Americans who used the ideologies of Karl Marx in attempt to fight capitalism and promote socialism in 1873. It is during this period that America experienced economic ‘panic’ that was known as the Great Depression; since there were no economic activities taking place due to the union strikes organized by the labor movements. This was characterized by severe union strikes organized by Karl Marxists and persistent price deflation. The economic depression experienced in 1873 resulted to a new dawn for the internationalists in the United States. Immediately after the economic depression, the Marxists led by socialist Karl Marx embarked on a series of demonstrations of unemployed workers, requesting for a more organized public works and benefits for every worker. According to the German Marxists, in the absence of a political system that was independent, the workers requirements could never be realized.
Studies of Louis (1985), the anti-capitalist movements were not successful in completely wiping out capitalism in the US. This was due to the fact there was no independent political system that would offer them support and this resulted to the labor unions being dissolved after a very short period of time. The efforts by the socialist movements were suppressed due to the fact that their tactics towards the abolishment of capitalism was not favorable in the US at the time due to lack of a stable political system. The capitalists had control over all things. As time went by, America experienced a socio-economic revolution that resulting to capitalist markets reducing gradually; due to diversification of the American economy ( Soialist Worker, 2008).
Generally, the capitalist system of administration laid a framework for the present American economic structure. America’s socio-economic system can be described as a mixed economy in that it has both capitalist characteristics and socialist characteristics. Most features of capitalism have not changed at all. Elements of capitalism are still present in American society. Means of production and distribution and production of goods in some sectors are still owned and controlled by the private sector.
References
Louis, H. (1985). A History of Industrial Power in the United States 1780-1930, Vol. II (University Press of Virginia), p. 415.Print.
Socialist Worker, (2008). The 1930s revival of US working class struggle.