Increased acceptance of imperialism echoes the capitalist nature of the international community. In other words, changes within capitalist conditions sparked changes within imperialism. Expansionism represented the ability to expand the United States’ capitalist market through an increase of trade, inexpensive raw materials, and labor. When wealth from undeveloped nations was exported back to the United States, it increased wages for working class Americans
John Hobson, an English economist, saw imperialism as inevitable, for powers of production outpace consumption resulting in more profit for the mother country (doc 2). The United States was involved in imperialism due to the Monroe Doctrine of 1823, which made the western hemisphere an American protectorate and their victory in the Spanish-American War making them a Pacific power. Both Europe and America believed imperialism could bring them economic power and capacity. Imperialism was not strictly confined to economics; it also included the political aims of unique states. John Hobson deemed demand for foreign markets for manufacturers and investments was responsible for the adoption of Imperialism as a political policy (doc 2).
When the demand for U.S. dollars increases, the value of the dollar will increase or appreciate (Stone 2008, pp. 685). As a result, U.S. products become more expensive for foriegners causing a reduction in exports and increasing imports. This not only effects the U.S. economy, but also affects the economies in other countries. Monetary policies influence and are influenced by international developments, including exchange rates, and based on these market conditions the U.S. government can make strategic changes to these policies to maintain the country’s economic stability (full employment, stable growth and price stability).
Using the mercantilist system, the governments of Spain and England intervened in the trade of their respective colonies constantly in order to gain wealth. The British government regulated their colonies’ economy through government-endorsed joint-stock companies. By regulating the companies that founded the colonies, they were able to regulate much of the imports and exports of the colonies. The Spanish government, however, intervened directly into the economy by imposing laws and taxes that encouraged economic standards that were beneficial to Spain’s economy. The political systems of the Spanish viceroyalties and the British colonies varied greatly.
Mercantilism is the name given to the economic doctrines and practices of major trading nations roughly from the fifteenth through the eighteenth centuries. Colonial empires such as those of England, France, and Spain were among those adhering to the mercantile system. Although specific practices regarding the doctrine varied from nation to nation, there were basic principles all mercantilists followed. Mercantilists practiced heavy state regulation of economic activity in order to boost national wealth. The wealth of the nation was based upon its stocks of gold and silver, rather than on its peoples' living conditions, for example.
270). Expansionary fiscal policy raises interest rates, whereas contractionary fiscal policy lowers the rates. The way that a person can track the policy that is recommended, is by looking at the output. If it has increased, the price level of such commodity is to rise as well. When there is a larger demand for more expensive commodities, the demand for money increases and the cost to borrow follows.
(Kelly, M. and McGowan, J., 2012)(p.19 & 21). Fiscal policy is more effective in promoting economic growth, by increasing government spending or reducing taxes. Fiscal policy in economic has reflected both political and economic realities. Monetary policy has the ability to slow down the economy in order to promote full employment and inflation. The monetary policy to economic is to increase the amount of money, by cutting interest rates.
Europe became the dominant power in the world, with other countries feeding on its increasing status. When the slave trade began, capitalism moved to its highest point, imperialism. Imperialism is the policy of extending the rule or authority of an empire or nation over foreign countries, or of acquiring and holding colonies and dependencies. This resulted in third world countries because they were robbed of their resources and raw materials and could not grow. Slave exploitation caused America to become the central power in economic, military, and political strength, instead of Europe.
The argument or what Hobson called “the economic taproot of imperialism” was excessive capital in search of investment, and that this excessive capital came from over saving made possible by the unequal distribution of wealth. (The New Imperialism/The Latin Library, Thompson) The remedy, he maintained, was internal social reform and a more equal distribution of wealth. (New Imperialism Lecture Notes, J. Hollis & Western Heritage, pg 828). Meanwhile, Lenin and other Marxists believed imperialism resulted in the demise of capitalism. As wealth concentrates in fewer hands, the ability for investment at home is reduced resulting in foreign investments and exploit weaker nations.
Beard supports his thesis by giving evidence of the economic interests of elite who wrote the Constitution, and then showing how the structure of the government benefits these specific interests. d. Commager iv. Commager supports his thesis by naming the two problems that the Constitution worked to fix, the problem of federalism and how to use laws to keep power of different branches of government in check. III. Types of evidence used e. Beard v. Newspapers and pamphlets from the time period (The Federalist) vi.