Emergency of USA As a New Capitalism Super Power
The period after the end of the Second World War saw the emergence of the United States as the pre-eminent military and economic power in the world. Every part of the world came under the purview of US interests. The US also viewed herself as a great “moral force” in the world. Many Americans liked to think that the period in which they were living could quite legitimately be described as the “American Century”.
Decline of European capitalism
Before the emergence of USA Britain is a nation that was leading economically. there are reasons that led to this nation and other European states collapse economically and giving chance to USA.
Factors which led to the decline of European capitalism
1. First and second world war
Participating in the first world war and the second, it made European nations to decline because they spent a lot of money in war.
2. The great depression of 1929 - 1933
This weakened Europe Economy. For example, in France the Great depression arrived later and lasted longer than anywhere. On the older land USA despite that she was badly affected she implimented the immediate measure to solve the problem.
3. Decline of colonial system
Many Africans and Asians colonies started to demand independence. British invested in those colonies, so its independence means that, British has to lose her market and invest.
4. Too many colonies
European countries had many colonies. These colonies were a huge burden on serving them. they spent a lot of money and that's why they fall.
Impact of the decline of European capitalism
1. The rise of USA as a super power of the World
This was due to the fact that, USA was not active participant in first and second world war
2. Decolonization of African countries
This was due to fail of colonial officers to run their colonies
3. Spread of democracy in the World
Many African countries introduce lliberal democracy with multipartism.
4. Introduction of new policies in third world countries such as structural adjustment program.
Factors leading to the rise of USA capitalism
USA was a British colony which got her independence in 4 July 1776. from 20th century USA started to rise as a leading capitalist nation. Features which helped USA to rise are:
1. Nature of USA population
She had different people from different origin. They include: Jews, French, British, Africans, Indians, Arabs, Chinese etc. Those people came with different technologies, thus the rise of USA.
2. Capital obtained from Britain after independence
Britain had invested heavily in USA which includes industries, plantations, infrastructure which were taken by USA and helped them to become rich.
3. The World Wars
Both wars were not fought on USA land. She was a supplier of weapon which helped her to accumulate a lot of wealth. Also she joined late during the war, so she didn’t incur big loss.
4. The Marshal plan of 1948
This helped to rehabilitate the war effects through provisions of loan to European countries with high interest rate. This helped USA to accumulate a lot of wealth from European countries.
5. Slave trade
She was the major beneficial of slave trade. Slaves helped USA to become a leading capitalist nation because they supplied labour in the plantation and industries, also, they acted as source of market.
6. Political stability
USA concentrated on her issues without any civil war. Peace and stability enabled her to invest in economic ventures thus the rise of USA as a leading capitalist nation.
Impact of the rise of USA capitalism in the world
1. Decline of European capitalism
European countries had been substituted by USA in that position.
2. Boost to decolonization campaigns
USA used her economic and military influence to pressurize colonial powers to grant independence to the colonies. USA used Marshall Aid as a tool to influence Africa and Asia nationalism.
3. Control of world financial affairs
She had influence over the IMF and World Bank. She had many multinational cooperation like Coca-Cola. Also she was the commercial and financial centre from Europe to USA.
4. Existence of the cold war
The war was due to the rise of USA. USA wished capitalism to rule the whole world. This was different for the USSR who sought socialism. That’s why the cold war was inevitable.
5. USA became the leading supplier nation in the World
She dominated industrial production and in 1970s she had almost half of the world’s manufacturing industry.
6. Emergence of neo-colonialism
They developed new strategies for managing Africa. neo colonialism is the current system where, the investment systems in the country, benefit the Americans, European and other investor except Africans who own those resources.
USA’s economy between 1914 and 1949
The period from 1914 marked a great development in the economy of USA. America industry and agriculture developed tremendously, domestic market widened, high development of infrastructure, advancement of manufacture of arms, military air craft, ships etc were realized. In deed in the 1920s the USA was the richest and most powerful country in the world.
Factors leading to great boom of the 1920s and its subsequent impact in USA
Why did US economy grow so fast in the 1920’s?
1. Impact of the first world war
The war helped American industry to prosper. During the war, America faced little competition from leading European countries like Britain and Germany which were busy making war equipment like weapons to fight the war instead of exporting goods.
2. New technology
This included the start of: radio broadcasting in 1921, availability of electricity supplies, fertilizers for farm and invention of taking picture which boosted the film industry.
3. Possession of abundant natural resources
USA had an essential supply of natural resources such as timber, iron, coal, minerals, oil and land. These provided enough materials and energy to boost industry.
4. The impact of the motor industry
Throughout 1920s, the most important of the booming industries was the motor car industry. Between 1920 and 1929 the number of the Americans car rose from 8 million to about 24 million. The motor car industries stimulated other industries like Glass, leather, steel and rubber.
5. Hire purchase and credit system
These were introduced in order to help Americans people to purchase the new goods that were available. It means that a person could deposit on an item that he wanted and paid installments on that item. This encouraged the Americans to buy more and could afford expensive goods.
6. Government economic policies
The government charged low taxes which encouraged business owners to invest. Also the government protected US economy by introducing high tariffs for all imports.
The new deal
The new deal was President Franklin D. Roosevelt plan to pull the United States out of the great depression of 1930s which had begun after the collapse of New York Stock exchange.
Roosevelt became the president of USA on 4 March 1933; he said that, “something we have to fear its fear itself.”
Aim of the new deal
1. To prevent the economic hardship that had been brought by the great depression to the American people.
2. To create employment opportunity for the American people. This was through, creating conservation projects which could give employment to American people.
3. To avoid inflation and increase the purchase power of the people
4. To reduce and stop poverty. Poverty was caused by Great economic depression, many Americans become too poor to meet their needs
5. To end banking crisis. This was planned to ensure the financial management was well managed.
6. To stimulate agriculture. This is because agriculture was damaged by great economic depression.
Impact of the new deal
1. It created new employment activities.
2. It achieved in the banking sector
3. It achieved in reducing poverty
4. Led to establishment of trade unions. This helped in minimizing friction between capitalists and workers.
5. It avoided the spread of Great economic Depression
6. It created major political changes in USA where by the Democratic Party became the majority party replacing the Republican Party.
Relations which developed between USA and Japan after the second world war
After the defeat of Japan in World War II, the United States led the Allies in the occupation and rehabilitation of the Japanese state. Between 1945 and 1952, the U.S. occupying forces, led by General Douglas A. MacArthur, enacted widespread military, political, economic, and social reforms.
Why USA decided to create relationship with Japan?
1. The cold war
The success of the Communist revolution in China in 1949 intensified the cold war in Asia. On that situation, America needed a strong ally in south east Asia that will check on the spread of communism in Asia. For example: Korea and Vietnam. So Japan was this ally.
2. To avoid future war
Japan was danger to USA. As a matter of fact, creating friendship with Japan was a solution to bring peace and avoid future wars.
3. Great potential of Japan
Japan had great potential in industry, farming and fishing which made USA think of making with her future trade and economic partner. Fear developed that a rival Japan would impose a great challenge to USA trade and economic interest in the World.
4. To consolidate Japanese capitalism
USA wanted to revive a strong capitalist economy in Japan believing that it would be helpful in advancement of her imperialism in the far East.
Impact of US relations with Japan after the second world war
1. Japan was put under USA domination
Japan was occupied by American troops under the command of Governor MacArthur. America was to oversee the Japanese affairs. In the period USA used as her satellite state.
2. Development of Democracy in Japan
By the American influence, Japan adopted democratic constitution and a parliamentary system. By this constitution minister had to be members of parliament elected by the people and given rights to form law. Also different political parties were allowed to develop.
3. Economic recovery in Japan
Japan received American aid to restructure her ruined economy. She become one of the leading industrial nations of the World by being Worlds leading ship building nations and producer of electronic goods like music sets, watches and camera.
4. Expansion of American imperialism in Asia
USA used Japan as a base to spread her imperialism in the far East and check the spread of communism in that regions. For example, when America went to war in Korea in 1850 - 1853, she depended on using Japanese naval bases and on Japanese industry for war supplies.
5. There had adoption of English vocabularies in Japanese language as well as the western business goods started to use the language of Japan as well as the Japanese goods started to use English vocabularies in order to sold easier at home and at world market.
6. Japan was put under the USA domination until the end of USA rule in Japan in 1970’s.
