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After WWI, the U.S. entered a sharp recession (1920–21), with falling prices and rising unemployment, but the economy quickly rebounded. This rapid recovery strengthened business-led growth, expanded consumer and corporate credit, and shaped the policies of the 1920s(Friedman Schwartz). After WWI, the U.S. entered a sharp recession but quickly rebounded, strengthening business-led growth and credit systems that defined the 1920s.
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The October 1929 stock market crash helped trigger the Great Depression, causing a severe collapse in demand, employment, and investment across the US. The 1929 crash exposed the deep weaknesses of 1920s credit and speculation, leading to widespread bank failures and major federal interventions (Friedman Schwartz). Its severity pushed the government to act on an unprecedented scale, creating new financial regulations and policies that fundamentally reshaped American capitalism in the 1930s.
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Between 1933 and 1936, FDR’s New Deal introduced major reforms like Glass–Steagall banking separation, the Federal Housing Administration, and the Works Progress Administration. FDR’s reforms, including banking separation and public works programs, reshaped finance and linked federal policy to economic stabilization (Congressional Research Service). These measures also expanded public investment and stabilized housing markets.
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During WWII, federal spending, industrial production, and technological development expanded rapidly, wartime spending and procurement integrated the federal government into industry, creating the networks that fueled postwar mass production and corporate capitalism (Field). This mobilization built the productive base networks that supported postwar mass production, full employment policies, and the growth of corporate managerial capitalism, shaping the structure of the American economy.
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The Bretton Woods institutions and the U.S.-led postwar financial order created dollar convertibility and fixed exchange arrangements that stabilized global trade and investment. By establishing U.S. financial leadership, Bretton Woods allowed American firms and banks to expand internationally, shaping mid-century capitalism around the dollar and creating a global system in which U.S. economic and financial power became central.
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In 1971 President Nixon ended dollar convertibility into gold, effectively closing the Bretton Woods system. Ending Bretton Woods fixed rates led to floating currencies and financial volatility, encouraging financialization and new macroeconomic challenges (Ghizoni). This move transformed global finance, creating challenges like inflation and stagflation and forced corporations and policymakers to adjust strategies, fundamentally reshaping markets, finance, and economic policy in the US.
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In the 1970s, oil price shocks combined with supply-side constraints to produce stagflation, high inflation paired with slow economic growth, revealing the limits of postwar Keynesian policies. This crisis weakened the existing policy consensus, encouraged the adoption of neoliberal and monetarist approaches, and prompted major structural changes in industry, labor relations, and corporate strategy, reshaping the trajectory of American capitalism for decades.
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In the 1980s, Reagan’s policies cut taxes, reduced government rules for banks and businesses, and encouraged free-market ideas. Tax cuts, deregulation, and market-oriented policies expanded corporate finance and reduced labor protections, shaping late-20th-century capitalism (Occupy Wall Street Movement). This led to risky financial deals, and a bigger role for banks and investors. With more power to finance and weakening worker protections, Reagan’s policies helped create the "Age of Chaos"
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In the 1990s and 2000s, trade agreements like NAFTA, deregulation, and the rise of computers and the internet changed how goods were made and sold. Companies could move production and money more easily across borders, creating global supply chains. The tech boom created new wealth and industries, while some regions lost manufacturing jobs. These changes reshaped businesses, finance, and how people worked in the U.S. economy.
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In 2008, the collapse of U.S. mortgage markets and the failure of major banks caused a global financial crisis and a severe recession. The government responded with massive bailouts and emergency monetary measures to stabilize the economy. This crisis revealed the dangers of financialized capitalism, sparked debates about regulation and inequality, and showed how much the state might need to step in to support private businesses and the broader economy.
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In 2011, the Occupy movement highlighted the gap between the wealthy and everyone else with the slogan “We are the 99%,” drawing attention to the power of banks and corporations. While it did not create new laws, Occupy showed widespread public frustration with economic inequality and corporate influence, influencing public conversations and helping make critiques of wealth concentration and late capitalism part of mainstream political debate.
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In 2020, the COVID-19 pandemic caused a massive economic shutdown, forcing the government to step in with large stimulus packages and emergency measures from the Federal Reserve. These actions directly supported businesses and households, showing how the state can intervene in markets during a crisis. The pandemic reshaped debates about government responsibility, public welfare, and the role of the state in stabilizing the economy.