Author: NATHALY ANGAMARCA

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In the past few months, I have gained further insight into what the American business looked like at the start of the nation and how it revolutionized the business today. Although I had already collected the knoledge of the topics taught in class from my previous classes, what I enjoyed particularly in this class was that i was able to explore more on some of my favorite time periods and I was able to connect the dots of the knowledge I had from my macroeconomics class and my Black history class. We start by learning about slavery and its contribution to early capitalism in the United States. Throughout each period, we continue to redefine what capitalism means and how it is interpreted in different periods. Since the south depended on slavery for cash crops, the north was expanding Indsutrilization and creating revolutionary machinery that eventually gave them an upper hand during the civil war. Right after the civil war, the south experienced the reconstruction era and the start of the gilded age came right after. During the gilded age, we can see the life of both the super-rich and the super poor. While we have railroads millionaires and real estate moguls on the rise, workers working in the manufacturing factories start to experience the harsh conditions and the unfair benefits received by employers. Jumping forward a couple of years later we then explore the roaring twenties. A time when the nation felt revived after going through a war. I believe that without the great depression and the great market crash the new deal created by FDR wouldn’t have happened. To this day we are still able to receive the benefits that the new deal had offered.
What I have noticed and found surprising was that after every obstacle the nation experiences such as a market fall or a war, the country is pushed in a different direction and lifted economically. . After WW1 the roaring 20s began, after the great depression the start of ww2 began which brought more jobs. After WW2 the era of consumption and consumer culture began. Learning more about the history of business and economics is important for one to know because we are learning about past mistakes and important events that outlined the decisions made today at the government level and in our everyday life. This class gave me the resources and the knowledge to understand more about business history. A part of history I didn’t further look into until taking this class.

The author of “Reflation and Relief” elaborates on the key details of Frederick Roosevelt’s initiatives and reformation that led to the nation’s upbringing after the Great depression. The economic downfall became the worst time for many Americans due to the lack of jobs and money circulation. During a time of high unemployment rate and low GDP President Roosevelt started by adjusting the banking system days after taking office. The Banking act of 1933 increased federal reserve power and allowed banking regulation. The author says “ if the fall of the commodities cannot be checked, we may be forced to an inflation of our currency”. Roosevelt would have to cut dollars loose from gold by raising interest rates and making the act of borrowing money more expensive. By reducing the circulation of dollars’ convertibility to gold, the USA and other Latin American nations can maintain a gold reserve. If money would have been easy to borrow then there would have been more investment and more jobs around but The system’s bankers chose the gold standard over the relief of domestic troubles and Americans had to suffer for a short period.
The 1933 Emergency banking act required Americans to turn in their gold into the federal reserve and prevent them from having gold in large amounts. The 1933 Civilian conservation corps was also put in place for young men with no experience who are looking for jobs. A couple of months later FDR also passed the( FERA) Federal Emergency Relief Administration which directly worked on struggling Americans who necessitated cash relief and jobs. I believe that FDR’s initiatives and reformation did create an impact on the American people during a time when they required government assistance for survival and its long-term effect. The New deal, which was a series of laws passed by FDR either became “the worst thing the Roosevelt administration has done” or “ The greatest Accomplishment”. Although the increase of jobs rised even more at the start of the war, laws passed by FDR during the great depression did eventually change the way the banking system is managed today.

 

In White’s reading, the author emphasizes the question, why were many railroads built at a time where there was no demand for them or little to no need for them? At a time where the nation was just starting to function without the control of Europe and the constitution was just starting to take action, innovators like Rockefeller and Carnegie took over railroads and steel. Since the Louisiana purchase, Americans have been trying to expand west. Before railroads, Americans’ form of transportation was by walking or by horse which took days and even weeks to cross. With the arrival of railroads the author describes it as the “Epitome of Modernity”, which defined the age even if it had some failures. White explains that although Railroads with Mexico and Canada became a source of national pride and national discontent which was important since they formed an international network that lined three countries it also received criticism since they were very expensive and the demand for it was not strong yet. Since railroads were originally a public/Private enterprise and then became a private corporation, Financing meant that they had to reach the government with heavy loans. This led to the government to attack while also protecting their workers in the name of the public good. Railroad also failed in the political system and image. Politicians used railroads in order to gain popularity in campaigns without realizing how expensive and counterproductive it can be. Many started to notice that railroads became corrupt and this influence was the start of the modern corporate lobby. Railroads also had social failures such as the production of an abundance of crops, cattle and natural resources beyond what the market can absorb. Production yielded great environmental and social harm and the nation was not prepared to handle it. White stated reasons as to why railroads were too ahead of their time but he also understood the great influence it will have on the United States and on the world.

A Very Short Introduction by Walter Friedman

1. How does this reading add to your knowledge of the subject, or challenge or contradict what you previously thought about this aspect of American or global history?

As grade school students we start by learning about Christopher Columbus’s voyage through the ocean blue in the year 1492. Then we enrich our knowledge with the history of colonization and trade done in the early years of our nation. Although grade school history’s class curriculum is not intended to go in-depth on a particular event in history, the class is then just covered on the surface of important events. In a “Very short introduction” by Walter Friedman, the author tosses us with a meticulous analysis on Trade, Commerce, and early manufacture that become important pillars in the growth of our nation. European countries’ interest in the new world grew more as they saw the value in cash crops, trade, and the vast land occupied by their native neighbors. 

With the Era of mercantilism on the rise, Great Britain’s influence and control in their colonies led to more exports than imports. While cash crops like tobacco, cotton, and sugar were run in the south, the north led the whale oil and fur business. One of the ways North Englanders were able to increase their profit in the whale oil industry was by exploring technology. They realized that by increasing the chip size and attaching harpoons on the boat instead of log floats they were able to hold on and catch two whales at a time. Friedman says “By the 1930s, American fisheries were annually producing about 4.7 million gallons of fine sperm oil, 5.8 million gallons of regular whale oil, and 1.6 million pounds of whalebone” Pg 25. The fur trade industry also saw an increase in production as their connection with the natives, dutch, English, and French people from the north grew. By staying connected with native Americans they gained valuable geographical and trapping animals skills. 

As the country’s population increased, demand for production also went up. Early manufacturers started with textiles mills, firearms, and the clock business. When I went over chapter 3, I found it interesting that the clock business was known as a luxury good in the early years. Only producing 25 clocks a year for 25 dollars. Technology plays a huge influence in the growth of this country and as we see today technology has continued to influence us just as much as it did back then.