World Economy from 1850 Until Today

3262 WordsNov 18, 201214 Pages
Analyze the development of the world economy from 1850 until present day. Constantly changing, the world economy will never be the same as it was a year ago, a month ago, or even a day ago. It might repeat itself in a similar manner or proceed in cycles but because of globalization it never stagnates and there is endless activity. Two hundred years in the past, our society and economy was radically different and went through multiple phases to reach where we are today. Though the boundaries of these phases cannot be specifically defined, the world economy from 1850 until present day can be roughly split up into three different stages. The first stage being British dominance, the second being American domination, and lastly globalization…show more content…
Indeed Europe colonized Africa and Asia only after the Industrial Revolution and European industries got a lot of raw materials from their colonies. Reliable transportation and military technology from the Industrial Revolution made colonization a very easy task, thus leading to Imperialism. The ideas of Karl Marx, the founder of communism and an opponent of industrialization, blamed the capitalist society for imperialism; “imperialism is the highest form of capitalism”. Marx believed in a cycle, which would always lead back to a communist revolution because of the tension between the proletariat and the ruling bourgeoisie class. He wanted a “dictatorship of the proletariat” in which case the class divisions would disappear and everyone would be equal. Nonetheless, Karl Marx was not the only influential figure who had his own opinions on how a country and its economy should function. Adam Smith, a philosopher of modern capitalism, had very different thoughts from Marx. His basic ideas revolved around minimum state intervention and maximum free trade. Smith was a free market capitalist and visualized a country where the government cuts it’s spending and lets the economy recover, grow, or fail. In the middle of these two poles lie the theories of John Maynard Keynes. According to him the government should invest money (unlike free market capitalists) so

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