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Final Thoughts: Americana A 400-Year History of American Capitalism by Bhu Srinivasan

Welcome back to The Professional Student! Today, I would like to take some time just to reflect on the previous 6 blogs. I don’t think I knew what I was getting into with the book I chose to do my reflection posts on, but I am a history fan.

History is one of those things that I love to study, especially food history. Many major brands still in existence can be traced back to the early 1900s when food manufacturing was starting to take off. Henry Ford pioneered the assembly line and the McDonald brothers were able to take what Ford did and apply it to their fast food model after they got out of the bbq business and switched over to what we know them for; burgers. McDonald’s still makes fast food, but in actuality, they’re a real estate firm. Franchisees might own the business, but corporate owns the land.

Wars are another area that I enjoy studying, having served myself and having a father (Vietnam), a grandfather (WWII), and a great-grandfather (WWI) who served. More recently, my nephew became a Marine about a year ago, so there is a family history of military service. Aside from the historical significance of historic wars, they cost money and they can make money. I can speak from my own personal experience having been in charge of running food service operations at smaller bases with about 150 personal eating three meals a day plus drinks, snacks, water, produce, etc., the cost is astronomical. I easily spent $15,000 to $25,000+ per week on food orders. Fast forward a full year and that number can reach or exceed $1,000,000.

Reading Americana, A 400-Year History of American Capitalism made me look at everything historically I already knew from a different perspective; the perspective of the dollar. Pilgrims made the journey over on The Mayflower chartered by The Virginia Company seeking religious freedom, which they got in exchange for 7 years of service loading ships up with goods to be sold for profit in Great Britain. Unfortunately for the Virginia Company, there were not able to stay in business to ever reap any fruits of their labor.

What is bad for one company is good for another, and the pilgrims were able to capitalize on tobacco and cotton, among other things, to turn a profit. So, while religious freedom might be the first founding principle of The United States, capitalism comes in for a strong second.

With that being said, no system is perfect. Is it capitalism to blame, the government, consumerism, or the tax code? Or, is it the devil in people that gets the best of us when blinded by prospects of amassing huge fortunes and wealth? Perhaps a combination of all. At the end of the day, money must be spent to make more. You can’t take it with you and a person only needs so much.

I will let you think about capitalism and what it means to you and end here. What is the future of the United States? Will the wealth gap keep getting larger? Will the American Dream disappear? Will we uplift each other as a society, or let those who can’t swim sink and drown? Will equality be achieved for everyone in the land of the free. Free until you don’t pay your income taxes, of course. Free so that the money you’re left with after taxes can continually get taxed over and over again until there is nothing left but fat pockets for some and empty pockets for others.

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Wrapping Things Up: Americana A 400-Year History of American Capitalism by Bhu Srinivasan

Welcome back to The Professional Student, and thanks for stopping by to check out my book review! Reaching the end has been a long journey, but we are almost there.


During my last post, I left with baby boomers and a booming economy, but those were not the only things booming! The middle class was also booming, and television became the center of American homes. Families expanded, the population grew, and the need for affordable housing increased suburban growth. For many, living in the suburbs is the American Dream, as owning a home becomes a reality that gives families an opportunity for a better quality of life.


It is interesting to think about this booming time of economic prosperity and the vision of the American Dream as it has disappeared from America. It may not have disappeared, but it has become challenging to achieve. Look to France for reference on their full-time structure. We can do better.


Is it a dream if you’re a slave to corporate America and have zero time to enjoy your home in the suburbs? Is it a dream when you work yourself to death from physical and mental exhaustion? Is it a dream when you miss your children growing up? Is it a dream to dig yourself into debt to achieve higher education and receive medical care? What is the new “American Dream?” Home prices have doubled in my neighborhood since 2020. I couldn’t afford to buy another house if I had to move. That’s the reality of the American Dream, but I’ll count my blessings every day and am thankful for everything, but what about those who will never experience the American Dream? Do they get left behind to sink or swim? There must be a better way to lift everyone and make the American Dream achievable.


I’ve digressed, but I needed to say that: back to the book. Wars are not over, and following the invention of nuclear weapons, they set in motion an arms race as other nations wanted to achieve the same technology. Que The Cold War, communism, and the space race! As I’ve mentioned, a lot can come out of wars. Though The Cold War wasn’t a war in the traditional sense, it was a time of extreme tension with the looming possibility of nuclear war between the United States and the Soviet Union and their respective allies from 1947 through 1991 until the fall of the Soviet Union.


Other wars followed suit after World War II that I don’t entirely need to get into, such as the Korean War, Vietnam, the Gulf War, and, in the near future, Operation Iraqi Freedom and Operation Enduring Freedom (Afghanistan). Are you seeing the trend here? America goes to war on what appears to be a regular basis, but as I’ve mentioned, wars cost money and make money. Capitalism.


In the meantime, the United States and Russia were also competing to get the first man on the moon in 1969 when Neil Armstrong stepped out to walk on the moon. Thinking about space now and Elon Musk’s Space X vision to make space travel affordable and environmentally friendly so that humans can become a multi-planetary species doesn’t seem too far off with how fast technology advances and progresses, maybe not in our lifetime, but certainly in the next.


The 60s and 70s were a wild time for civil rights and social change that focused on racial equality and justice, and I think about it. I think about all the pot smoking and LSD people were dropping. I think about everything that has happened, and here we are, 54 years into the future from 1970, and we are still struggling with racial equality and justice in America. At some point, white people will be the minority in America. The “majority-minority” point arrives around 2050 when minority groups comprise 47% of the population (U.S. Department of Commerce, 1999). Will America truly achieve racial equality and justice by that point? I hope so. I’ll be 66, and I’m looking forward to it.


America isn’t done giving birth to technology and innovation. That could be further from the truth, despite her shortfalls with the rise of Silicon Valley. The birth of the internet, Apple, Microsoft, Atari, Oracle, Adobe, Sun Microsystems, and Cisco (Morrison, 2023).


The Industrial Revolution allowed the United States to become a national economy. The rise of Silicon Valley paved the path for the current global economy. As Silicon Valley rose to fame, scandal riddled the nation with Nixon and Watergate. Following Nixon, a few more presidents got elected (Ford, Carter), but let’s talk about Ronald Reagan moving forward.


“Reaganomics” policies focused on cutting taxes, deregulation, and decreasing the role of government in the United States economy. Reagan’s thoughts? Free-market policies equate to innovation and growth. Did it work? There was an economic boom in the 80s, so in the long run, yes, and the effects of Reaganomics still shape capitalism.


The 90s were a transformative time. I learned to type when I was 6 in kindergarten. There was a computer room with old (now) floppy disk Apple computers, and the teacher would tape paper on the keyboard to cover our hands. I have many fond memories of playing The Oregon Trail! More and more homes were getting internet access thanks to dial-up AOL or America On-Line. It was slow but worth the wait, and we didn’t know better. Technology evolves continuously and gets smaller and faster. Our phones are full-blown computer desktop computers in our hands, and the price reflects as such. All these things: television, space travel, nuclear weapons, civil rights, the rise of technology, Reagan, and now Amazon, Tesla, Space X, and Apple are all names I think of to describe just how innovation and capitalism have driven the significant technological advancements in our country.


Is capitalism a double-edged sword? On the one hand, many great things have been created thanks to capitalism, but on the other, does it simply represent the interests of the top 1% while slashing down middle and lower-class citizens, furthering the wealth gap and creating more inequalities? Money must go into the economy to stimulate the economy, and that only happens if people are spending. I’ll end on that note and let you think deeply about capitalism and what it means to you.

References

Morrison, S. (2023). The story of Silicon Valley- How it began, how it boomed, and where its headed. Power and Beyond. https://www.power-and-beyond.com/the-story-of-silicon-valley-how-it-began-how-it-boomed-and-where-its-headed-a-9836fd8f0adf6d3535810e709d99fec3/#:~:text=During%20the%201970s%20and%20the,massive%20influx%20of%20venture%20capital.

Srinivasan, B. (2018). Americana: A 400-year history of American capitalism. Penguin Press.

U.S. Department of Commerce. (1999) Minority Population Growth: 1995 to 2050. Minority Business Development Agency. https://www.mbda.gov/sites/default/files/migrated/files-attachments/MinorityPopulationGrowth1995to2050.pdf

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The Ups & Downs: Americana A 400-Year History of American Capitalism by Bhu Srinivasan

Welcome back to The Professional Student! I hope you’ve caught up on the previous book review blogs, but if not, no worries. We are going to keep moving forward and talk about a lot of highs and lows.


We’re in the 20th century, and things have progressed rapidly in America. The early years of the 1900s were prosperous, and the country was thriving, but not everything was butterflies and sunshine unless you were in Hollywood. War is looming, not just a typical war, but the First World War because of a conflict between the Allies and the Central Powers.


Millions of men left home to fight, and women filled manufacturing and farming jobs back home, a vast departure from the typical household model. Women also enlisted in various branches of service in jobs usually away from the battlefield but provided direct support to the front lines. The war ended in 1918, and economic prosperity followed, known as The Roaring Twenties. Ironically enough, during this time, prohibition also started (and lasted 13 years) making it illegal to sell, transport, and produce alcoholic beverages.


When there is a demand, there will always be a supply if money is to be made regardless of the law. Bootleggers understood this and risked criminal charges, fines, and jail time, all for the sake of alcohol. The same can be said for illegal drugs and narcotics in America today.

I think we’ve all seen folks who struggle with addiction and many countries have decriminalized drugs. The legalization of illegal drugs could provide an entire new market and tax source. It could also ensure the safety of the ingredients in the drugs without users worrying about what they’re laced with and save lives. I don’t think big pharma would appreciate that as their revenue could decrease. Why spend your money on pain pills from big pharma when you can go purchase what they’re made out of legally?


Aside from bootlegging, The Roaring Twenties was a significant period of economic boom thanks to technology that allowed for the mass production of goods, the electrification of America, mass marketing, cheap credit, and more job creation. There were automobiles, television, and electricity. Things were looking up until they weren’t.


On Black Thursday, October 24, 1929, the stock market crashed. Millions of shares were sold by investors who lost faith in the economy. The panic spread beyond investors to regular working-class citizens running to the banks to withdraw all their cash before they collapsed. Not everyone made it. Life savings were lost, retirement funds were lost, businesses crashed and could not operate, and people lost jobs, homes, cars, and livelihoods.


Several banks crashed over the past few years, such as First Republic Bank, Signature Bank, Silicon Valley Bank, and Almena State Bank. These “niche” banks were not federally insured, meaning deposits and risky mortgage lending practices were not protected. Since 2001, 567 banks have failed (FDIC, 2024. What is the lesson here? Make sure your accounts and deposits are federally insured! Maybe keep some cash at home in a shoe box, too. I also remember the housing market crash in 2007, thanks to Fannie Mae and Freddie Mac. The current economy is also questionable, and some sources believe another depression will start in 2030, lasting well into 2036 (ITR Economics, 2023).


Roosevelt created The New Deal to help get America out of The Great Depression by introducing programs such as public work projects, financial reform, and federal regulations. The New Deal helped, but was it what pulled us out of The Great Depression, or was it World War II?

The Great Depression ended in 1939, the same year World War II started between the Allies and the Axis powers. Millions of men were drafted into military service, and millions of new jobs were created in the defense and war industries. As an Army veteran, wars are a terrible thing to witness, but they’re also very profitable, depending on which side of the line you’re on.


World War II saw many things, but most significantly, the creation of nuclear weapons in America. These weapons of mass destruction forever changed the face of the planet when two atomic bombs were horrifically dropped on Hiroshima and Nagasaki in Japan, ultimately ending the war, which led to another great period of economic boom that was driven by increased government spending. And a baby boom or boomers, as we like to say!

References

FDIC (2024). Bank Failures in Brief- Summary. https://www.fdic.gov/resources/resolutions/bank-failures/in-brief/index.html

ITR Economics (2023). Why Awareness of the Comming Great Depression Is Vital for Success in the 2030s. https://blog.itreconomics.com/blog/why-awareness-of-coming-great-depression-is-vital-for-success-in-2030s#:~:text=ITR%20Economics%20is%20projecting%20that,pop%20up%20during%20this%20period.

Srinivasan, B. (2018). Americana: A 400-year history of American capitalism. Penguin Press.

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Diving In: Americana A 400-Year History of American Capitalism By Bhu Srinivasan

Moving forward into the book’s first four chapters, I was quickly reminded of the history behind the United States and how it came about. Most of us know the story of the pilgrims coming over on the Mayflower. Still, I was fascinated to learn that the pilgrims were religious people who had left England and went to Holland to practice their religion, as they could not do so under British monarchy rule. They wanted to leave Holland because they feared the unholy influence the country would have on the young and were deemed to be worthy of credit based on their religious standing. The closer to God you were, the better your “credit” was.

The Mayflower was owned by The Virginia Company based out of London. The Virginia Company was formed in 1606 with permission from the newly crowned King James I after a failed attempt to colonize America in the 1580s in present-day North Carolina.

True to its name, The Virginia Company owned Jamestown, Virginia, the first colony in the United States, to colonize America for profits by bringing back resources and riches to England. Shares of stock were sold with the promise of high returns to shareholders. Money raised from selling stocks was used to fill three ships with supplies and 144 “settlers” to build and establish Jamestown (U.S. Department of Interior, 2024).

Here is the kicker: settlers were more like indentured servants working for freedom. The Virginia Company owned them, as they had to work for seven years with the promise of owning their land. They were charged with gathering the resources to be sold for seven years. All orders were taken from The Virginia Company employees, and all materials and supplies were provided to the settlers.

Unfortunately, The Virginia Company was a colossal flop that had to be bailed out time and time again by The Crown, and its charter was revoked after 17 years. Settlers died at accelerated rates from famine, lack of supplies, disease, cold winters, and attacks from the indigenous people.

The pilgrims that we know from The Mayflower were supposed to end up in Jamestown, but there were many delays caused by the change of terms to their contract by The Virginia Company, which they protested. Eventually, an agreement was reached, but the delay caused them to arrive in November, not at their destination. Instead, they were forced to make provisions for winter at Plymouth Rock, where they ended up settling a new colony.

When The Virginia Company ceased, an agreement was reached with the pilgrims that in exchange for 1,800 pounds, they would own the land and property in Plymouth Rock when the debt was paid off.

Unfortunately for The Virginia Company, things started taking off in Virginia when smoking tobacco caught on amongst the rich and elite. Virginia’s rich soil was a perfect match for farming tobacco, which could then be sold and sent back to England, allowing the settlers to become profitable.

One thing that caught my attention while reading was that shares were sold. I was curious to know when the first stock exchange was established. I discovered it was in Amsterdam when The Dutch East India Company became the first publicly traded company after they decided to sell stock in exchange for dividends (Hwang, 2024).

Thanks for stopping by The Professional Student, and I hope you enjoyed this week’s blog. Don’t forget to like, repost, and comment!

Resources

Hwang, I. (2024, May 22). A brief history of the stock market. SoFi. https://www.sofi.com/learn/content/history-of-the-stock-market/#:~:text=Who%20Created%20the%20Stock%20Market,Amsterdam%20stock%20exchange%20was%20created.

Srinivasan, B. (2018). Americana: A 400-year history of American capitalism. Penguin Press.

U.S. Department of the Interior. (2024). The Virginia Company of London. National Parks Service. https://www.nps.gov/jame/learn/historyculture/the-virginia-company-of-london.htm#:~:text=The%20Virginia%20Company%20was%20formed,34th%20and%2041st%20northern%20parallel.