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American Capitalist History

The capitalism system supports innovation and economic growth of a region. Capitalism support dynamism thus entrepreneurs are always focused on the creation of the unique product. The innovativeness of firms and entrepreneurs creates a climate of economic expansion that does not only improve the infrastructural development in a region but also enhances the nation’s GDP. Advancement in the transportation system through creation or railroad, steamship witnessed in the 19th century in America was as a result of the capitalist system of governance. The emergence of skyscrapers and electric lights are as a result of the innovative nature of the capitalists. Despite the benefits of capitalist history, the system is not without certain drawbacks. Capitalism encourages individualism, corruption, and hyper-competitiveness that negatively affect the viability of an economy. Risky spending also associated with capitalism plunged the country into the Great Depression, a worst economic downturn ever witnessed in the American history.

One notable assertion that surprised me on the American economic development history was that the industrial revolution hit Europe before America. It would then be expected that Europe will be more developed and richer than America, however, that is not the case. As observed, America is still richer than most regions. Besides the industrial revolution process, I tend to believe that the entrepreneurial culture embraced in America also contributed to its economic development.

Capitalism focuses on the constant revolution of production and embracing uninterrupted social conditions that enhances the dynamism of the system. The vibrant nature of the system justifies its volatility and unpredictability. The dynamism of capitalism has been beneficial in the creation of raw wealth and capital. However, the system has failed to promote social equality that has consequently led to the polarization of wealth.

Capitalism is likely not to survive in the future. This is because as much as it leads to the creation of wealth, the polarization of the same, and social inequality achieved cannot release any viable economic system. Efforts put in place to address the effects of polarization have remained futile. Strategies such as the implementation of advanced tax codes and the creation of social safety systems have only undermined the benefits of capitalism other than addressing the issue of wealth polarization and inequality. The government faces a major challenge in dealing with the extremes of capitalism making the sustainability of the system questionable.

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