Does anyone know anything about the death of capitalism in the 1930's?

Question

and how it affected the US?

Answer 1

By difinision Depression (the main states are Regression, Boom and Depression) is the death state of an economic system. Therefore, the American capitalism really died during the Great Depression and the American capitalism was the leader of world capitalism. It regressed by the help of European capitalism thereafter. We can say that the world capitalism was severely sick in 1930s. The greatest effect on USA was millions of employees were out of jobs, the price of goods was at the minimum, the American debt was maximum, deflation was highest, and generally the market was sverely dysfunctioning properly. and hence the government had to go in and correct the market system.which was a turn around from the perfect free market policy the USA was driving at that time.

Answer 2

Since the Great Depression refers to an economic depression, the economic definition of depression is "A period of drastic decline in a national or international economy, characterized by decreasing business activity, falling prices, and unemployment." Depression definitely does not mean the death of an economic system otherwise our economy would have 'died' at least once about every decade, twice in the 80s.

What I think the reference to the death of captalism in the 1930s refers to is that to combat the Great Depression FDR used many socialist programs, such as workers programs. What the United States has now is really a mix of capitalism and socialism (in fact no country in the world is pure capitalism or pure socialism) but a lot of the socialist programs still around today were started during the time of FDR, such as social security. And I think the people at the time thought that the U.S. would become a lot more socialistic then it did. Of course WWII and the subsequent boom of the 50s is what largely turned this trend around.

Answer 3

Capitalism didn't die. Both fiscal and monetary policy were bad during that time period. A lot of reforms came out of that era as a result.

Answer 4

Sorry, capitalism is alive and kicking today. Actually, some the communist and socialist systems that boasted that they will bury capitalism are either dead or dying. Capitalism is flourishing because the old soviet bloc is now transitioning to capitalism.

Answer 5

The bankers took money out of circulation, therefore creating the depression. There were plenty of jobs to be done, like always, but without the money being circulated, they couldn't work. This also enables them to buy businesses dirt cheap.

Answer 6

The announcement of its death was premature.

Answer 7

It didn't die.