The transition of the US economy from a colonial economy to a complex industrial economy has seen the Americans build equally complex institutions to match that change. This has led to the Government getting more involved with the economic trends. This paper aims to give in insight into the Economic history of America and the criticisms of the current financial state. Stiglitz (2018) argues that the transition of America from being an industrial-based to a service-based economy largely contributes to the fiscal gap between the social classes of Americans. However, Ioannidis et al. (2020) explain that equality of opportunity in the US has increased over the years. Evidently, economic changes have resulted in societal diversity in the US society creating a need to revisit financial regimes.
Economic growth can be traced from the period of the first indigenous Americans to have settled in North America. The inhabitants of North America traded amongst themselves and never included outsiders or foreigners in their exchanges. They concentrated on land ownership and farming to earn a living. They also participated in small-scale handicraft production and the exchange of mainly gold. In South Carolina, the major cash crop was rice, and shipbuilding was the major non-agricultural economic activity. During this period, property such as land was communally owned, hence minimal division along economic lines.
The industrial revolution later started in Europe and spread to the US. Despite the urbanized industry being limited, there were several manufacturing industries still operational. The civil war in 1861-1865 saw a rapid economic, which furthered the need for innovative inventions to aid in more efficient operations development. The American economy matured in the 20th century, and the Business Barons were replaced by technocrats who were more capable of delivering the needed inventions. With Economic growth came a need for taxation, and disputes surrounding the tax laws were unavoidable.
Starting 1990 onwards, the American economy had shifted drastically and was on the rise. Few people were concerned with farming, and an increasing number of people sought employment in formal sectors. Stiglitz (2018) argues that the American economy became rigged3. He outlines that America moved from being an industrial-based economy to a service-based economy. The economic inequality in America is largely significant, and wealth is by far less equally distributed.
Conversely, in what they term the “American dream,” Ioannidis et al. (2020) explain how equality of opportunity in the US has increased over the years2. Pro American-inequality argues that the laws of supply and demand in a competitive market determine wages, interest rates, and the price of commodities2 (Ioannidis et al., 2020). Economists have also argued that the advance in technology is what has largely contributed to the increased innovative economic opportunities in the US. With increased access to education, basic needs, and social amenities, every American has an equal chance to compete in emerging economies. Civilization has also resulted in social awareness of human rights and reduced racial and ethnic discrimination practices that hindered economic equality.
From the readings, my perspective on industrialization, modernization, and technological advancement changed. I perceived economic advancement to only be beneficial, but the readings reveal some disadvantages. In addition, the readings reveal the current trends in economic shifts in the global economy today. I would apply them to study global economic shifts in relation to societal equalities.
References
Holder, Michelle, and Alan A. Aja. Afro-Latinos in the US Economy. Rowman & Littlefield, 2021. Web.
Ioannidis, Alexander G., Javier Blanco-Portillo, Karla Sandoval, Erika Hagelberg, Juan Francisco Miquel-Poblete, J. Víctor Moreno-Mayar, Juan Esteban Rodríguez-Rodríguez, Consuelo D. Quinto-Cortés, Kathryn Auckland, Tom Parks et al. “Native American gene flow into Polynesia predating Easter Island settlement.”Nature 583, no. 7817 (2020): 572-577. Web.
Stiglitz, Joseph E. “The American economy is rigged: And what we can do about it.”Scientific American 1 (2018). Web.