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Bank runs and collapsing stock market shattered confidence in the current system. The crash destroyed the publics trust in the stock market by exposing weaknesses in investing. It also revealed that the banking system had no safe guards like deposit insurance. Out of this fear of losing everything emerged the importance of trust in the system, trust that was central to capitalism in the future. A new mixed economy was introduced with financial regulation and government oversight. (Minsky)
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With the New Deal, the FDIC and the SEC were created to stop bank runs and add more regulation to the market, in turn adding more trust. This was a further shift away from the Laissez-Faire system into more active federal intervention. Massive federal projects also boosted employment and built infrastructure essential to modern capitalism. (capelli)
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During World War II, the U.S' industrial production abilities and it's labor force forged a powerful partnership with large corporations and the government and the industrial capabilities of the U.s expanded dramatically and propelled the U.S into a global economic leader after the war. (Garin, Rothbaum)
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After the second world war, rising wages, mass production, and a massive shift to sub urban areas created a consumer driven capitalist system based around consumption and newly introduced middle class ideals. (Cohen)
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Highways were the biggest logistical shift in transportation capabilities since the railroads. Corporations now did not have to depend on location of rails. Highways also drove a rise in retail across shopping malls and big box stores. They also changed the game for commuting, giving people more ability to live away from where they work and travel to work everyday. Highways and automobiles introduced a new standard of middle class ideals for Americans. (Modarres, Dierwechter)
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Manufacturing jobs and factory production began to decline in cities like Detroit and Pittsburgh. Automation with machines, global competition, cost cutting by moving factories south/ overseas, all led to this. Millions of jobs disappeared and shifted capitalism towards service capitalism from industrial. Early globalization paved the way for global corporate capitalism. Modern shipping logistics lowered transportation costs and enabled free flow of capital across borders. (Podgursky)
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President Ronald Reagan introduced mass deregulation of finance, airlines, and telecommunications, as well as tax cuts that empowered corporations, weakened labor unions, and in turn accelerated inequality. This was a big step towards 20th century capitalism. (Holt)
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In the 1990s, the emergence of digital technologies saw the creation of so many new markets. This new technology reshaped communication all together and shifted capitalism toward data, networks, and online property rather than physical production. The internet opened up so much more potential for service based capitalism as suddenly there was a new marketplace that everyone in the world could access. (Castells)
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A massive collapse of mortgage backed securities and shadow banking produced the worst financial crisis since 1929. It exposed a risk within the system and led to government bailouts and reshaped modern finance. In response, stronger federal oversight of big banks came in. It was a time of disparity, millions of working people lost homes while big banks and financial corporations were saved. This gave platforms like Amazon a chance while people were in need of cheaper goods and flexibility.(Kim)
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Companies like Google, Amazon, and Facebook became the new monopolies. These platforms were built on data extraction, utilization of global logistics, and used algorithms to produce a grapple hold on the market and the competition. This kind of platform capitalism redefined labor, markets, privacy, and narrowed potential for competition drastically. (Conyon)