Evolution of the US Nation - Essay Example

R.Preeti 13/8/2009 Evolution of the Nation Many internal changes affected America in the years from 1865 to 1945. In a Describe the social, economic, and political causes and consequences of industrialization, urbanization, and The Great Depression. Be sure to address the following questions: a. What were the causes of the Economic Collapse of 1873 The Economic Depressed succeeded the Civil War in America and hence the period was quite synonymous with the weakening fo the economy. "A depression is usually accompanied by a financial panic or a crash of the stock market as investors lose confidence and refuse to buy stocks or make loans." [Consult the First Annual Report of the United States Commissioner of Labor, on "Industrial Depressions" (1886); Jones, Economic Crises and Periods of Industrial and Commercial Depression (New York, 1902). The New International Encyclopedia, Dodd,Mead and Company-New York. Copyright: 1902-1905 21 Volumes.] The causes are many. Firstly, the Railway Transportation hit rock bottom and locomotive transportation came to a stand-still. Secondly, fires engulfed a number of cities and people suffered immensely. In fact, many buildings were razed to the ground. Thirdly, the Coinage Act of 1783 brought about a huge change in the silver prices. Gold and Silver could no longer be mined. This not only affected the internal economy, but foreign relations as well. Debts of farmers increased and this affected the lower middle class. The Army Cavalry had to fight the Apaches and there was a huge emergency, when they were required to pull the wagons by hand. This had a big impact as well. In addition to this, the immense growth of the Railways saw most of the financial resources channelized to the sector, leaving the economy in the dumps. Big banks like Jay Cooke and Co. had invested majorly in the railways and couldn't meet the bonds they were supposed to clear. Besides all of this, the fiscal policies of the then President and the other entrepreneurs made things worse. So much so, that Jay Cooke and Co. went bankrupt. All these causes led to the Economic Depression of 1873, which not only affected the internal and external affairs of the United States. b. What caused the rise of American industry Initially, the American factories were run by using hydel power from the fast flowing rivers in Northern America. However, after the Civil War, rail links were laid between Southern and Northern America. Then, industrialisation, which was catching up in the rest of the world, took over the United States. This happened because of steam-powered manufacturing in factories, which succeeded water-powered factories. When the fast-flowing rivers were situated in Northern America, factories were located in the region. However, since steam-power was universal, the factories began to sprout everywhere, leading to industrialisation. Then, the first cotton industry came up, followed by wool processing. Mills came up everywhere and this initiated the first phase of industrialisation in America. Since Britain and the rest of the developed world were taking to industrialisation, America couldn't stay far behind and thus, industrialisation was brought about in the U.S, leading to the agricultural sector taking a backseat. c. What impacts did big business have on society, economics, and politics The Age of Industrialisation paved way for the establishment of big industrial houses. These houses grew by leaps and bounds and became establishments that help immense power and contributed immensely to the economy of America. These industries had huge impact on the society and the political economy. For instance, the agricultural sector went down and the farmers were rendered either jobless or left with little work. Then came the political economy that underwent a huge change. These big industrial units came to command the economy of the country which relied on these industrial units. Carnegie, Rockefeller and Cornelius were such industrialists who came to dominate the scene. They not only took to industrial activities, but also society-related work, liek building public library, research centres and the like. "One of the captains of industry of 19th century America, Andrew Carnegie helped build the formidable American steel industry, a process that turned a poor young man into one of the richest entrepreneurs of his age." [Retrieved from www.pbs.org, 1999] Thus, these big businesses dominated the society, economics and politics and had a huge influence on them. d. How did new inventions, westward expansion, and federal laws contribute to making the United States, The World's Breadbasket The United States came to known as the World's Breadbasket, owing to the great quantity fo production and opportunities for all and sundry. The low population and large amount of natural resources, strategic geographical position and the economic growth helped the country emerge as the World's Breadbasket. A number of inventions, like the steam engine and the locomotive, new machinery to be used in factories and several other industrial inventions led to the growth of industrialisation in the country. In addition to this, citizens from developing countries who wanted to make their fortunes came over to the United States. Migration from India, Canada, Africa and the like led to the westward march, wherein these migrants were used as labour and they could make their fortunes for themselves. Thus, the problem of low population was solved. The federal laws were particularly conducive to the country's progress and production, as the government encouraged capitalism and helped industries expand and grow. Thus, the United States emerged as the World' s Breadbasket, especially when the other economies of the world were busy warring against each other. e. What were the social, economic, and political consequences of urbanization in the United States The consequences of Urbanisation were many. Like every coin has two sides, so did this aspect have positives and negatives. The positive effects were many. Urbanisation saw the strengthening of the economy fo the United States and the strengthening of the military base as well. It brought about great levels of comfort and better conditions of livelihood for the Americans. It also promised great prospects for the migrants. It led to high levels of production and thus, saw a steady rise in its positioning in the world. The shift from outdated agricultural methods to highly industrialised methods was indeed monetarily rewarding. Politically, capitalism gained an upper hand and the industries were on a boom. However, the negative effects of urbanisation cannot be denied. The shift from agriculture saw those who worked in this field suffer. Farmers were debt-ridden and couldn't cope with the sudden shift. Produces went in waste. It brought about a divide socially and economically. It also brought about a divide politically, when few people formed groups to protest against this phase of industrialisation and wanted justice to be meted out to the farmers. Rapid urbanisation led to an upheaval and the economy couldn't' catch up with the sudden progress/ Thus, these were the consequences of rapid urbanisation. f. What were the three main elements of the Progressive Movement, and what was the significance of the Progressive Era "The Progressive name derived from forward-thinking or "progressive" goals that its supporters sought to advance." [Retrieved from www.eagelton.rutgers.edu, Eagleton Institute of Rutgers, 2004]. The three main elements of the Progressive Era were, the reform of the socio-economic condition of the Americans. The industrialisation process had brought in a number fo changes and these had to be addressed as soon as possible. The social change brought about in the society were related to women suffrage; attaching importance to women and bringing about equality of genders. The economic aspect that was dealt with, paved way for the legislation on taxes, under which the clause dealing with income tax was amended. The political aspect dealt with the direct election of senators, that had an impending effect. The press gained importance and exposed scandals and the agricultural sector was given aid to overcome the sudden downfall brought about because of industrialisation. g. What caused the Great Depression The Great Depression was a big event in the history of the world and the United States. One fo the biggest causes of the Great Depression, was over-production and under-consumption. Industrialisation brought in an era that saw a huge production of goods. This was way below the consumption mark. The consumption was less because the public did not possess enough capacity to consume as much as the production mark. This difference brought ni a huge impact and cause the deflation of the economy. Banking was another sector that was structurally flawed and thus, bankruptcy and lack of debt-riddance measures paved way for the deflation. A number of banks were debt-ridden and couldn't rise above this. "As stock prices continued to fall during the early 1930s, banks closed, businesses failed, and unemployment rose sharply, doubling from 4 million in 1930 to 8 million in 1931. By 1932, there were 12 million without jobs--one of every four workers." [Retrieved from www.eagelton.rutgers.edu, Eagleton Institute of Rutgers, 2004] The breakdown of international trade before the First World War and during the Inter-war period also led to the deflation of economies worldwide, including the United States. In addition to this, poor policy-making by the economists of the United States was another potent cause for this deflationary situation. Thus, debt, decline of international trade, high industrialisation and poor policy-making were prime causes for the Great Depression. h. What was the significance of President Roosevelt's New Deal on American politics and society Roosevelt initiated a number of policies and programmes between 1933 and 1938, which were called the New Deal. "The New Deal Roosevelt had promised the American people began to take shape immediately after his inauguration in March 1933. Based on the assumption that the power of the federal government was needed to get the country out of the depression, the first days of Roosevelt's administration saw the passage of banking reform laws, emergency relief programs, work relief programs, and agricultural programs." [Retrieved from www.eagelton.rutgers.edu, Eagleton Institute of Rutgers, 2004] These policies and programmes were brought about, to provide relief to the masses who were subject to the Great Depression. It brought about a great shift in the functioning of the government and the economy in general. For instance, a number of legislations on monetary aspects and fiscal measures were brought under the power of the federal government. His policy governed all aspects of civilian life. He brought about programmes to help the agricultural sector, the industrial sector, the artisans and musicians, the banking sector and the like. Therefore, the New Deal is extremely important and significant owing to its impact on all these sectors and on life in America in general. It paved way for better living conditions, better economic conditions and better socio-politico-economic scenario. REFERENCES Vinay Kumar Malhotra, 'International Relations', Anmol Publications Britannica Encyclopaedia First Annual Report of the United States Commissioner of Labor, on "Industrial Depressions" (1886); Jones, Economic Crises and Periods of Industrial and Commercial Depression (New York, 1902). The New International Encyclopedia, Dodd,Mead and Company-New York. Copyright: 1902-1905 21 Volumes. Website: www.pbs.org, 1999 Website: www.eagelton.rutgers.edu, Eagleton Institute of Rutgers, 2004 Read More