РефератыИностранный языкHiHistory Parallels In Economy Essay Research Paper

History Parallels In Economy Essay Research Paper

History Parallels In Economy Essay, Research Paper


As


one can see there are many striking parallels between the Gilded Age or the era


from the eighteen eighties to the eighteen nineties compared to the Silicon Age


of the nineteen eighties to the nineteen nineties. The preconditions for these


two massive economic booms share similar birth paths laid in laissez faire


policy, no regulation or deregulation and innovative booms. Before the 1880’s


there was no real conflict between the welfare of the American people and that


of its business units. That happy relationship lasted only until the 1880s. Big


business or Trusts, appeared in the United States during that decade. Once they


were established, it grew faster and to a larger size than it did elsewhere. One


reason was the absence of any countervailing force in America. A new country


made up almost entirely of immigrants, who needed jobs, big business was


welcomed and a favorable economic policy provided a catalyst for there birth.


These economic conditions gave rise to innovators, monopolists, and most


importantly, rugged individuals who changed the landscape of the worlds economy


forever. Their huge personalities went hand in hand with the vast size of their


empires. The problems big business raised provoked a powerful public response


that immediately moved into the realm of the political economy and provided for


a change in the leniency of laissez faire. In the closing years of the


nineteenth century, the United States became the only major industrial power to


enact legislation explicitly designed to curb the power of large corporations.


Congress passed the Interstate Commerce Act in 1887, the Sherman Antitrust Act


in 1890, and the Federal Trade Commission and Clayton acts in 1914. The Sherman


Antitrust Act remains the most stringent in the world. The nineteen eighty’s and


more importantly Ronald Reagan’s election victory was the catalyst for the


Silicon Age. Reagan and his re- clothed trickle down economics or "Reaganomics"


brought laissez faire to a maximum point. Not only did he repeal or lay off


enforcement of these anti trust and anti business laws, but went as far as


dropping the Governments case anti trust cases. The stagnant equity markets


began to take flight and the greatest bull market continues 15 years later.


Coupled with major tax cuts and financial market innovations, an era of


technological revolution appeared. This Era would witness innovations and Titans


the likes as we have never seen before. What we call the New Economy is truly


the dawn of a new age, a Silicon Age. The numbers have been impressive: a 70%


increase in real profits since 1990, inflation below 2%, 4.5% unemployment, plus


rising real wages, even for the lowest paid workers. The 1990’s have all the


ingredients in place for a further surge of innovation that could rival the


Gilded Ages. Over the next decade or so, the New Economy, so far propelled


mainly by information technology may turn out to be only the initial stage of a


much broader flowering of technological, business, and financial creativity. The


economy seems to be undergoing a wholesale rejuvenation. Businesses, financial


service firms, and universities are reinventing themselves. Even politicians and


policymakers are starting to grasp the new technological and economic


realities.(Business Week). The New Economy or Silicon Age of the 21st Century


Economy will still resemble the economies of old in market behavior though. Each


innovative surge creates economic and social ills, from recessions to


stock-market crashes to widespread job losses, and this one won’t be different.


But that’s the price a nation must pay to achieve the benefits of dynamic


change.

Сохранить в соц. сетях:
Обсуждение:
comments powered by Disqus

Название реферата: History Parallels In Economy Essay Research Paper

Слов:647
Символов:4415
Размер:8.62 Кб.