Global Economy Vs United States Essay

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The end of the Second World War showcased a devastated world with the former economic powerhouses of Europe in disorder. In contrast the United States of America emerged as the global economic powerhouse. America's aim was to reconstruct and establish a post-war global order that cemented American hegemony. This essay will argue that revolving global reconstruction and development around the surpluses of the United States led to the most golden period of capitalism, where growth in both economic and social spheres was unprecedented and is unlikely to be repeated. The stability and effectiveness of the Bretton Woods institutions and the Marshall Plan helped produce massive growth that lifted the global economy into a full-fledged recovery, away …show more content…

Fordism has been used to describe how the industries of this time with large scale industrial production, segmented and standardised production into jobs that anyone could do. The idea of organising social forms of life around mass production industries facilitated class compromise and the development of a relationship between the state, industry and labour unions which enhanced job security and provided steadily increasing wages. Increased industrial productivity by workers led to companies like General Motors tying their wages to productivity increases (Alexander and Embrick 2008, 286). In turn, secure employment and remuneration growth created the bridge that linked mass production with mass consumption (Pietrykowski 2010, 1149). This framework lead to a 60% increase in personal consumption in the US from 1945 to 1950 (Levy and Murnane 1992, 1337). Post war governments also invested in their citizens, in education, health, public works and other social wage initiatives. Places such as Britain provided the National Health Service with comprehensive free health care (Padgett and Paterson 1991, 129). Education loans were available for returning soldiers as well as welfare investment. Governments also heavily invested in building social and public infrastructure such as housing and

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