How Different Systems Of Production And Their Contributing Socioeconomic Institutions Characterize Different Economic Periods?

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This theory is used to explain how different systems of production and their accompanying socioeconomic institutions characterize different economic periods (Blau, 2003). The SSA theory accepts crisis as a part of the capitalist cycle, and expects the market to collapse for new opportunities for growth and capital gains.
At the end of the 19th century and in the early and mid-20th century, there have been three major economic collapses that shaped the structure and operation of the USA. Reich (2009) notes the Depression of the1890s due to the devaluation of the dollar and agricultural crisis was resolved politically in the election of 1896 and economically by the merger wave of 1897-1903. During this phase companies providing similar services merged to create monopoly over their lines of production such as railroads and electricity. The Federal Reserve System conceptualized in 1908 was created in 1913 with the purpose of maintaining the value of American currency and controlling bank credit. While created by the government the institution represents ideology and theory in practice. Prior to Congress oversees the entire Federal Reserve System. The reserve must work within the objectives established by Congress though the Federal Reserve maintains autonomy to carry out its responsibilities without political pressure. Each of the Reserves parts—the Board of Governors, the regional Reserve Banks, and the Federal Open Market Committee (FOMC) operates independently of the federal

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