Problems Of United States Capitalism

Abstract

Wave upon wave of prosperity, accompanied by ever higher levels of production and consumption, nourish the belief that the U.S. economy has found new sources of strength and that remaining weaknesses can be fairly easily overcome. The main reasons for this renewed faith are advanced in varying degrees by both radical and conservative commentators: (1) the new technology is in effect a second industrial revolution and is performing a role similar to the first industrial revolution in fostering long-range economic growth; (2) the new competition between socialism and capitalism induces extensive aid and investment in the Third World, which in turn creates new markets for advanced capitalist countries; (3) the political acceptance of the Welfare State as a necessary approach to social development; and (4) the availability of an economic "tool box" which can be used to manoeuvre a capitalist economy so as to avoid serious crises.