FDR and the New Deal.
Business erroneously sees FDR as anti-business, probably prolongs
the Depression. The rise of the labor unions challenges business'
total control over labor. The income tax, originally progressive,
becomes mostly regressive.
World War II ends the Depression,
ends business's hostility toward FDR. The war ends. The need for
perpetual war-time economy is seen as a factor in the Cold War. The
contrast between economy producing military goods and one producing
Century, Second Half
The global economy.
The need for overseas markets and raw materials continues through
the 1950s. Multi-national corporations use factories overseas with
cheap labor. Rivalry increases within the capitalist world. Castro
comes to power, threatening business there. U.S. economic needs
connect with U.S. foreign policy.
The Reagan revolution of 1980s.
"trickle-down" supply-side economics, windfall profits, investing
overseas, risky loans, huge increase in military budget. Dwight
Eisenhower's earlier warning of the military-industrial complex as a
threat to American democracy.
Significant past gains, but as unions weaken, business demands
give-backs under threat to more plants elsewhere. .Increased
environmental laws at home are another motive to move overseas.
Since 1970 real wages decline despite automation, and workers work
longer hours. International. World trade agreements benefit
business elite. World economy becoming a greater reality.
Future of U.S. capitalism.
U.S. capitalism is safe at home. Political contributions pay off.
U.S. capitalism is less safe abroad, with the increased rivalry from
China and India with their cheaper labor supply. Danger of future
conflicts with unpredictable outcomes.