The End of Affluence by Jeffery Madrick :: Economics End Affluence Madrick Essays

The End of Affluence by Jeffery Madrick   Ã‚  Ã‚  Ã‚  Ã‚  As the first European settlers arrived in America, ideas of wealth and prosperity were fully implanted in their minds. These ideas soon turned into reality, and the United States dominated the global economy up until the post World War II years. In this paper, from the Book The End of Affluence by Jeffery Madrick, we will discuss how America has gone from domination of the economic market , to just barely hanging on, and the many roads both good and bad that it took.   Ã‚  Ã‚  Ã‚  Ã‚  In the 1800's a young historian by the name of Frederick Jackson Turner proclaimed that once Americas land had been purchased and fully cultivated, the deterioration of America would begin. Jackson was not alone in thinking this, many of his peers and colleagues had the same views and beliefs, but were proven wrong with the introduction of the Industrial Revolution. This new era introduced an abundant amount of shortcuts in the area labor and labor saving devices. The introduction of these devices meant that a company could now save on salaries, but still increase productivity. The results of this new way of business were evident, the years between 1790 and 1807 showed American exports rising from 20 million to 108 million exported goods a year. The increase in exported goods was not only due to the new inventions, but also the high tariffs placed on imports, giving America a trade surplus. This increase in trade not only brought about wealth and economic growth, but also revolutionized inventions. One of the largest examples, is the introduction of the railroad, and the tremendous effect it had on the trade of goods. This revolutionary invention enabled the transportation of goods to become quicker, and opened new markets. The ability to transport goods quickly also returned a quicker profit enabling the seller to roll his money over into other items. This new and speedier cycle of buying and selling strengthened the American economy even more, allowing the U.S. to have an enormous trade surplus. The railroad was not the only major invention aiding prosperity. The Cotton Gin was another invention that revolutionized the way work was accomplished. This machine separated cotton fibers from seeds speeding labor 2 to 3 times of what it use to take. The introduction of these machines were effective labor saving devices, but unfortunately with every action there must have a reaction.