Global implications of the transformations in the US economy during the 20th and 21st centuries

Ermir Shahini

Global implications of the transformations in the US economy during the 20th and 21st centuries

Ermir Shahini

Abstract

The impact of capitalism on the economic development of the USA and Europe remains a significant subject of research, given the prominent role the United States plays in the global economy and international relations. This study aimed to conduct a comprehensive comparative analysis of the influence of the capitalist model on the economic development of Europe and the USA from the Industrial Revolution to 2024. To achieve this aim, a wide range of historical sources, statistical data, and scholarly literature were analysed, enabling the long-term evolution of capitalism in the USA to be traced and its impact on economic development and social life in both regions to be thoroughly assessed. Particular attention was given to the comparative analysis of the development of capitalist relations in the United Kingdom, Germany, France, Italy, and the Nordic countries, as well as to identifying common features and differences in the formation of capitalist models on both sides of the Atlantic. The findings indicated that the liberal and neoliberal systems played a decisive role in the economic rise of the USA and the leading European countries, fostering high growth rates, technological advancement, and improvements in living standards. Simultaneously, the development of capitalism was accompanied by the intensification of social contradictions, growing inequality, and environmental degradation. The study showed that from the colonial era to 2024, capitalism in the USA and Europe underwent constant transformations, evolving from its early forms to mature corporate and financial capitalism. The study explored the dialectic of positive and negative consequences of capitalist development for different social groups and spheres of life. Capitalism contributed to the unleashing of productive forces and technological progress, but also generated exploitation and social injustice. The findings of the study can be used by economists, policymakers, and scholars in developing more balanced economic strategies that take into account both the advantages of the capitalist system and ways to address its shortcomings. International organisations and think tanks can apply these findings to formulate recommendations regarding global economic governance and sustainable development

Keywords

Industrial Revolution; social inequality; globalisation; deregulation; monopolisation

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Suggested citation

Shahini, E. (2025). Global implications of the transformations in the US economy during the 20th and 21st centuries. Foreign Affairs, 34(2), 58-63. https://doi.org/10.59214/2663-2675.35(2).2025.53