The strength of the economy encouraged Americans to take out more loans and buy more stocks, making them susceptible to future changes in the economy. The freedom caused financial markets to crash globally which helped power the Great Depression. Another example of lack of government intervention was the robber barons, a term referring to the wealthy and powerful businessmen in the 18th century. They were also known as “pure capitalists”, because they believed in an economic system that involved minimal interference from the government. Those working for robber barons were beaten and threatened, and the working conditions were terrible.
However, back then numerous people didn’t comprehend just how much of an impact farmers had on their everyday lives. If you took farms away from the United States during this period of time, everything would have entirely crashed. Farmer’s had complications with making a living because the rates of being a farmer were so high, as it is stated in document B. The farmers were also being abused by the railroad companies and banks. Like it says in document F “Nothing has done more to injure the (western) region than these freight rates.” Out west the railroad companies took advantage of the people and often they would charge more than four times the Eastern rates.
The prosperity of the 1920’s did not prepare the Americans for the depression in the 1930’s. The stock markets crashed on October 29th, 1929 Americans expected president Hoover to help the nation back on its feet. However Hoover maintained a feeling laissez faire. Soon after Franklin Delano Roosevelt was elected president he created many programs to aid in the depression and to get the economy up and running. Although his programs did not have an immediate effect on the economy it created a long-term effect on the rest of American history.
The term "Gilded Age" was coined by Mark Twain and Charles Dudley Warner in their book The Gilded Age: A Tale of Today (1873). The term refers to the gilding of a cheaper metal with a thin layer of gold, with a hint of the "golden age" of a nation's glory. Many critics at the time complained that the era was marked by ostentatious display, crass manners, political corruption, and shoddy ethics.  Historians point out that it was a time of enormous industrial, urban and agricultural growth that attracted millions of eager workers from Europe. Railroads were the major industry, but the factory system and mining were important as well, and labor unions began to be important.
Americans were dedicated to free enterprise and the concept of laissez-faire. Little governmental inference in economy allowed small business, out of trust agreements, to fall prone to much larger businesses. Employers and employees did not share the same benefits. Industrial workers suffered from horrible conditions ranging from long hours to low wages. Farmers also failed to cope with the volatile and dynamic society of the gilded age as America transformed into an industrial nation.
Another reason for the disparity is that some economies are unable to provide substantial skills to participate actively in the global economy. Such countries provide obsolete and low valued talents such as weaving and farming, hence leaving them with limited opportunities for abundant economic growth. As a result, this has led to a misallocation of wealth as the rich constantly improve and develop themselves to enjoy the benefits of globalization, often capitalizing on the low skills and poorly paid workers. As such, in 2003, the richest fifth of the world’s population received 85% of the world’s income, while the poorest fifth received only 1.4% of the global income (Infoplease, 2005). One possible solution to ease inequality in the globalized world is through progressive taxation.
The failures of economic policies employed during the Great Depression left the American government more open to the ideas of Keynes. In the year 1929, the Wall Street stock market crash triggered a depression so severe, the likes of which have yet to be seen. The response by the American government at the time, led by president Herbert Hoover, was a ‘do nothing’ ‘laissez faire’ approach believing that the markets would right themselves, in allowing better businesses to take the place of the failed ones. This was not looked upon favourably because, as Clarke put it, “although market forces ensured a permanent tendency to a full employment equilibrium, market forces took time to operate”.  Where classical economists had argued that during a depression, governments should raise taxes and strive to balance the budget through reduced spending, Keynes contended that government should stimulate demand through reduced interest rates, tax cuts and
Causes of the Economic Boom in 1920 America After the fall of Germany and with it, the Triple Alliance in1918, many countries in Europe found themselves in poverty and serious debt. However, unlike these European countries, America had not been overly affected by the First World War. Despite America losing soldiers on the Western Front, no fighting took place on American soil, so little money was spent regarding building and agricultural repairs. In fact, America had prospered during World War One. Whilst Britain and Germany fought one another, the USA sold goods to many countries which had previously been supplied by the warring nations.
Is the poverty of poor countries in any way due to the wealth of the rich? Up until the 19th century, the world had never experienced prolonged economic growth. Instead, their business cycle would rely on the harvest quality of each year. Nowadays, economic growth is due to several variables of which many economists such as Solow and Ramsey have used in models and theories to explain why some countries have grown more than others. The big question is why Britain followed by Europe and the US were the first to industrialise and take the first foot steps out of being impoverished nations and why countries such as India have taken longer to do so.
Who is benefiting from outsourcing? Investor, shareholders, and American consumers profit from outsourcing. However, the countries that the jobs are outsourced to benefit the most, for example, housing jobs for foreign companies boost the economy by increasing employment at the expense of millions of American jobs. For decades, jobs have been moving away from the United States. James Park (2010,