Golden Age of Capitalism - Essay Example

This was a time when commerce was being revolutionized with the emergence of new technologies in transport and communication which facilitated the international markets. Railroads and steamships were used for land transportation of goods. This gave birth to the international market with goods being transported between countries such as America and England. The development of international commerce in manufactures on such a scale was only possible because of an increase in international flows of capital and the international provision of financial services (Milward 22).

This was evident in post world war II economy of Europe. By 1950 more a great percentage of the income of foreign nations such Denmark was from foreign trade with other nations. The exchange rate between national currencies was stable despite the intensity among warring nations that was building up. As a result nations were able to prosper and grow economically and promote interdependence. The standard of living for many citizens was at the time much better and continued to improve with the increase in the national income per capita as a result of economic success.

Over the period 1950-70, the rate of growth of output in the construction sector was between 4 and 7 per cent a year over Western Europe as whole, and thus somewhat higher than the rate of growth of total output (Milward 52). This added to the success and economic dependence of nations after World War II. Thus different sectors of different nations that specialized in a trade to facilitate growth, rose considerably. The trade deficit with the dollar zone increased threefold between 1951 and 1957 (Milward 182).

This increased output and western Europe had a surplus that was unprecedented. Help extended to the citizens of a nation post war was crucial in establishing the state as a means for the people to better themselves. The sweeping reform of the German pensions systems in 1955-7 , a bid by the Christian Democratic Union for a long-term middle class electoral support, had little in common, for example with the extension of public welfare in Sweden or Norway except an adherence to the view that the stability of the state required a positive response to the demand for welfare (Milward 47).

This was important in conveying to the public that in accordance with the welfare policies in place, they too were to contribute to the growth of the economy in the countries mentioned. In my perspective, this was a time of great trials and tribulations, those getting richer were foreign investors, bankers and merchants. Governments dealt a hand, and immersed their economies in the growing world market. This period thus gave rise to a flurry of new job opportunities in transportation and communication.

The post-war reconstruction of nations aided by technological advancements was meant to rebuild the economy, promote industrialization and modernization. As a result of the success achieved in this endeavor, it was necessary for the governments to maintain it for purposes of achieving economic dependence. Political stability of this age put participating countries in the forefront of international trade, investments, travel and migration which increased more than any other period. It is incredible how nations were able to experience a period that was high in economic growth as a result of transportation and communication advancements.

This period was unique and cannot at this time be