Schwartz Outlines

Schwartz Outlines - Schwartz Readings Chapter 8 American...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Schwartz Readings Chapter 8 American Hegemony was built on the subsequent petroleum, car, and assembly-line cluster. This allowed the US economy to continuously expand it productivity lead over the rest of the world from late 1890s until around 1960America’s inability to cope with the macroeconomic consequences of assembly-line production and to export that solution led in part to the Great Depression. The four problems caused by the leading sector o The diffusion of the assembly line out from the car industry and into allied industries like refrigerators, washers, dryers and radios meant that major portions of the economy became vulnerable to sudden changes in aggregate demand. o The return of displacement completion. US innovation of the assembly line threatened to displace the uncompetitive production systems of other countries. A European version of American-Style production did not emerge until after WWII o The Depression and memories of WWII food shortages closed the window for Ricardian strategies based on agricultural exports o Britain’s ability to use its import market and financial resources to organize trade and money collapsed in the 1930s. The US was the only plausible replacement as a hegemonic economy, but lacked the solid domestic backing that British financiers and textile exporters provided for Britain’s role. Global economic leadership went missing in the 1920’s because while the British wanted to continue playing hegemon, they could not afford to, while the US, which could afford the role, didn’t want to. State Power and interests ultimately reflect the power and interests of the social groups, supporting the state, and powerful loc of US business interests that sold little in global markets was indifferent to international problems. The war enhanced the US government’s ability to control its domestic economy and the global economy The war transformed the Federal Reserve system into a true central bank The war expanded the reach of income taxation to the bulk of the working class, giving the state an enormous and broad source of revenue Nationalist- made up of firms and farms oriented almost exclusively towards the domestic market. Examples: steel and iron firms, railroads, coal-miners, food-production- the Republican party represented this group Internationalists- car firms, electrical equipment makers, producers of electrically powered machinery, and oil firms o their incorporation of continuous-flow production processes made them extremely competitive in world markets- The Democratic Party represented this group Domestic political compromises determined the form and content of US hegemony. Britain was largely content to act unilaterally and rely on markets to enforce its interests.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 8

Schwartz Outlines - Schwartz Readings Chapter 8 American...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online