Metamorphosis of American Capitalism

Abstract

Does capitalism have an inherent instinct or tendency that contributes to its periodic bouts of instability? Are there any infirmities which need to be streamlined to get the system on its sustainable growth path sans crisis? One of the biggest jolts and setbacks which the system and philosophy of capitalism received was during 1930s experience. Since then the system and the philosophy have adapted to sustain its development and continue as the best-suited organization to contribute to economic growth and stability. For nearly seven decades, the American capitalism, despite the few temporary hiccups, survived and strengthened under the pressure of tremendous technological, societal, and ideological changes across the USA and the globe. The crisis emanating from the subprime debt problem leads us to have fresh look at the system’s efficiency and identify its lacunae to build a stronger and more responsive institution with more effective fail-safe mechanism and avoid the distress from crisis. A prosperous nation cannot sustain without an adaptive and resilient economic philosophy. To understand the psyche of the affluent American society, one must understand the building blocks of social and economic thought and structure and its evolution and influence in shaping the policies that create institutions driving its growth.