Analysis the Current Economic Crisis Term Paper

Analysis the Current Economic Crisis - Term Paper Example America had been the epicenter of scientific and engineering innovation throughout the 20 century. While the Civil War triggered off the entrepreneurial spirit in America and witnessed technological and scientific advancement in the 20th century, the period of five decades after the Civil War witnessed a virtual explosion of industrial growth. Additionally, the scale of the war convinced people about the viability of developing organizations of national scale. This belief, coupled with industrial growth, led to the development of gigantic business organizations. This period also witnessed the growth of nationwide transportation systems, like transnational railway lines and steamships and communication systems, like telephone and telegraph networks. These developments transformed the American economy from a loose collection of city/state based economy to a truly unified and synchronized economy. This unification led to a period of robust growth of the economy and drove the consumption of society. (Kornblith G.J., 2004) As discussed before, America in the pre-civil war era was essentially a loose collection of local economies. Agricultural was the most important employment generating sector and local communities were more or less self-dependent. However, agriculture, due to its inherent dependence on nature, offered an uncertain and often underpaid economic system. The advent of the Industrial revolution led to explosive growth in demand for skilled as well as unskilled laborers. Unlike agriculture, an industrial job offered more stability and sometimes, higher wages. This led to a massive flow of labor from agriculture to the industrial sector. This internal migration led to the rapid growth of existing cities and the development of new cities. This massive urbanization led to the evolution of an entirely different kind of society - a society that had a relatively stable income and surplus cash but was totally dependent on the larger economy for its basic needs. Â