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US industrialization, According to Teixeira, US hegemony originated…
US industrialization
First stage
Growth of the textile and wood industries in the North, but overall small local businesses focused on non durable and simple durable goods, until the Civil War.
Before 1812: fairly low tariffs, much below what Alexander Hamilton advocated for, only increasing during the War of 1812 to fund armies.
After 1812: Large protectionism and interventionism, specially in the North. The South is against tariffs for it wants to export and buy cheap imports.
Prelude
At the beginning of the 19th century, the US was still an export focused economy, mainly of commodities.
The US had the advantage of never having a feudal structure, although the South had slavery, plantations and the “agrarian question” (taking of indiginous land for expansion).
The North had a culture of independent small properties, and both greater commerce and greater manufacturies.
As obstacles, the country had great availability of land, english competition and a lack of national unity.
Immigration resulted in the population going from 4 million in 1790, to 30 in 1860, to 90 million in 1890, all aiding in the workforce and consumer market.
Second stage
Unlike European capitalism, the American “Modern Capitalism” was more monopolistic and less reliant on imperialism, being very liberal on the inside, but protectionist on the outside.
Modernization and creation of a more sophisticated national industry, capable of producing durable goods.
Rise of large monopolies producers of oil, steel, energy, metallurgy, etc.
After the civil war, the government got stronger, the American banking system developed and the country adopted protectionism.
Gilded age
Railroads not only made the sale of goods easier and more profitable, they also led to the development of many other industries, such as telegraphs for better communication.
Better schools were created for their development, and banks grew with investments.
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This was also the age of unregulated capitalism and government corruption, leading to large monopolies and wealth inequality.
Such economic boom resulted in large changes in the workplace, the most famous being created by Henry Ford, which massively decreased production times for his cars and made him one of the wealthiest men in the world.
The expansion of monopolies accelerated in the 1880’s, due to their already big holdings in the market and practices such as cartels and trusts.
With the improvement in banking and the larger scale of business, the first corporations arouse from the largest companies at the time.
Such corporations even had their own banks, far more reliable than those belonging to other families.
World War 1
At the end of the 19th century, the US was quickly urbanizing, and many small farmers that were losing their business formed the Populist party.
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Woodrow Wilson lifted tariffs and reform the banking system of the US, giving more control to the government rather than big names.
The US tried to remain neutral at first in the War, but the German policy of unrestricted submarine warfare dragged them into it.
Despite this, it went back to isolation after the war, proposing the League of Nations but not joining it.
The US greatly profited from the war and its aftermath until 1929, and the government started working alongside big corporations, rather than against them.
The roaring twenties are marked by improvement of life quality and economic growth, specially in the industry of durable goods, which the US dominated.
The dollar grows in strength internationally due to the debt that Britain, the world’s main loaner, had acquired during the war.
World War 2
The war allowed the US to recover from the 1929 crash, and the country emerged as an intact hegemon among the destroyed powers. The role of the central government increased.
Initially, to expand its influence, the US suppresses the losers, promotes free trade with former British colonies and develops friendly relations with the USSR.
After the death of Roosevelt, the US seeks allies against the Soviets in the defeated countries, and develops the Marshall Plan to secure its relations.
The Bretton Woods system created a world economy based on the dollar, a sign of US hegemony.
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In the 60’s and 70’s a weaker dollar caused the US to take protectionist measures, resulting in many banks leaving the country.
The defeat in Vietnam hurt the prestige of the US, and the Oil crisis ended the Bretton Woods system.
According to Teixeira, US hegemony originated through 3 wars:
In WW2, it starts dealing with external issues and spreading its influence.
In the Civil War, they solve their internal disputes and start industrializing.
In WW1, it becomes the largest industry on the planet.
Amidst recession in the 70’s the US sought to value the dollar and increase its military spending to spread its influence once again.
Such measures helped the economy recover in the 80’s, but drastically increased national debt.
According to the author, the US cannot keep its hegemony forever, and its free market ideals make it specially hard to do so.
Other important industries were: oil, steel, machine parts, etc.
After the first world war, the US replaces Britain as the world’s largest manufacturer.
American imperialism was less focused on acquiring resources, preferring to secure its neighbours and the Pacific.
Although the South lost the civil war, they managed to remain influential, passing laws such as the Jim Crow Laws.
The state organizes the internal market and offers plenty of land for industry, creating a culture of mass production and mass consumption. Thus, the US industry was heavily modernized, Taylorist, full-time, etc.