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ThegovernmentinterventioninAmericaneconomicdevelopmentRecentlywehavediscussedeitherprivatizationornationalizationismoreimportant.ManystudentsdrawtheconclusionthatnationalizationplaysamoreimportantrolethanprivatizationintheAmericaneconomic.Next,IwanttodiscusstheinfluenceofthegovernmentinterventioninAmericaneconomyfurther.Thefirstpart,therelationshipbetweenthegovernmentinterventionandthehistory.Asweknow,theAmericanPresidentialelectionisaroundthecorner,WiththeU.S.electionjustdaysaway,ithasneverbeenmoreimportanttoconsiderwhatthenextPresidentmustdotokeepAmericacompetitive.Inthistimeofcrisis,Washingtonhasfocusedontheimmediateandtheshortterm.Lostarethemorebasicquestionswereallyneedtoworryabout,whatisthefundamentalcompetitivepositionoftheU.S.intheglobaleconomy?Andwhatmustwedotoremainstrongwhenothernationsaremakingrapidprogress?Tofindtheanswers,weshouldgetsomeknowledgeoftheAmericaneconomichistoryfirst.ThemodernAmericaneconomytracesitsrootstothequestofEuropeansettlersforeconomicgaininthe16th,17thand18thcenturies.TheNewWorldthenprogressedfromacolonialeconomytoasmall,independentfarmingeconomy,andeventuallytoahighlycomplexindustrialeconomy.SoAmericastartsfromafree-market,anditalsohasbeenwritteninthelawthateverycitizeninAmericanhastherighttopursuithappiness.Inmypointofview,wealth,ofcourse,isincludedinthemeaningofhappiness.Governmentinterventioncanbeoriginaltrackedbacktothebeginningofthecountry.TheAmericaneconomicsystemseemedworkedverywelluntiltheeconomiccrisisof1929to1933inAmerica.ForthesakeofsavingAmericaneconomy,FranklinDRoosevelt,thenewPresidentof1933,broughtalarge-scarereformintoeffectinAmerica.Becausethesereformmeasureshadcharactersofcapitalisticimprovement,thisreformwascalledFranklinD.TheNewDealadministrationofPresidentFranklinDelanoRooseveltwasacriticalwatershedinthedevelopmentofthewelfare-warfarestateintheUnitedStates.Precedentsconcerningpublicpolicyandideologysetduringthatperiodarestillwithustoday.HoweverthereismuchmythologyandmisunderstandingregardingFDRandtheNewDealfoundinacademicandpopularhistoricalaccounts.Wemustsiftthroughthevolumeofpublishedworkstryingtoascertainthetruthfulnessandaccuracyofthesestudies.Dr.GaryNorthrecentlypointedoutthatthereexistsnosinglecriticalanalysisofthishistory,writtenonascholarlyacademiclevel,whichtreatsbothdomesticandforeignpoliciesofRoosevelt’sNewDealandtheirconsequences.Whilethisisindeedtrue,thereinfactexistmanyvolumesinprintwhichundertaketoexploreandexplainthisperiod.ThisannotatedbibliographicguideisanattempttoacquaintattentionwiththisliteratureregardingFranklinRooseveltandtheNewDeal.FranklinRooseveltandtheNewDealisobviouslyagoodexampleforthegovernmentinterventioninAmericaneconomy.Besides,thereisanotherparttoshowyou.Thesecondpart,therelationshipbetweenthegovernmentinterventionandtheeconomicsystem.
TheAmericaneconomicsystemisorganizedaroundabasicallyprivate-enterprise,market-orientedeconomyinwhichconsumerslargelydeterminewhatshallbeproducedbyspendingtheirmoneyinthemarketplaceforthosegoodsandservicesthattheywantmost.Privatebusinessmen,strivingtomakeprofits,producethesegoodsandservicesincompetitionwithotherbusinessmen;andtheprofitmotive,operatingundercompetitivepressures,largelydetermineshowthesegoodsandservicesareproduced.Thus,intheAmericaneconomicsystemitisthedemandofindividualconsumers,coupledwiththedesireofbusinessmentomaximizeprofitsandthedesireofindividualstomaximizetheirincomes,bothtogetherdeterminewhatshallbeproducedandhowresourcesareusedtoproduceit.Therefore,thereisahighlevelpossibilitytocauseeconomiccrisiswithoutthegovernmentintervention.Aftertheseriouseconomiccrisis,theAmericanshaslearnedlessonsfromthat,therefore,governmentinterventionplaysaveryimportantroleintheAmericaneconomy.NowtheAmericaneconomyhasperformedremarkablywell,butourcontinuedcompetitivenesshasbecomefragile.OverthelasttwodecadestheU.S.hasaccountedforanincredibleone-thirdofworldeconomicgrowth.Asthefinancialcrisishit,therestoftheAmericaneconomyremainedquitecompetitive,withmanycompaniesperformingstronglyininternationalmarkets.U.S.productivitygrowthhascontinuedtobefasterthaninmostotheradvancedeconomies,andexportshavebeenthegrowthdriverintheoveralleconomy.InAmericaneconomy,privatelyownedandoperatedbusinesses,includingfarms,produceabout85%ofthetotalfinaloutputofgoodsandservices.Peopleinindependentprofessionalpractice,suchasdoctorlawyers,andaccountants,produceabout3%ofthetotal.Governmentunits,includingschooldistricts,turnoutmostoftherestofthecountry'sproductsandservices.Governmentworkersatnational,state,andlocallevelscomenext,withapproximately21%.Inaddition,thegovernmentinterventionhasbeenanobviousfeaturenotonlyinthesocialistcountriesbutalsointhecapitalistcountrieslikeAmerican.Thegovernmentcanstillexercisesomecon
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