A debate, Capitalism Vs Communism

[Badassbab]

SamuelRSmith said:

Badassbab said:

SamuelRSmith said:

America got rich because it embraced capitalism in the 19th century. It decays now, because it fares away from it. The "emerging nations" are doing so because they are embracing more and more capitalism today. To argue that the way to "ruin" somewhere is to have capitalism, is to argue against history.

America got rich in the 19th century because of geography, protectionism, Europeans fighting each other and immense natural resources. State capitalism played it's part.

Geography and natural resources have nothing to do with it. Hong Kong is essentially just a big rock with zero natural resources, and yet it's one of the richest places in the world. Because of capitalism. Many places in the world are far more resource-blessed than the USA, and is still far poorer. Look at Africa and Latin America, for example.

Did Americans not fight each other in the 19th century? Best throw out my history books, then!

Protectionism, I'm not gonna dispute that America had protectionism, but it grew rich despite it. To argue that protectionism makes a country rich is to argue that a family who refused to trade with any outside individual could become wealthy through it. Have to build your own shelter, make your own clothes, grow your own food, harvest your own energy, etc... everybody would have a job! The family's employment would be 100%, they'd be billionaires! Right?

Keeping to your original topic which is to say 19th century US Economy post Civil War (since that's when the economy took off and presumably this is the period you are talking about)-

Geography- Mass arable farming land and one of the best interconnected navigable rivers in the world so low transport investment required. Some of the worlds best natural habours and all year round warm water ports. Barrier islands protects US coasts from bad weather. Pacific and Atlantic protected it from the major land armies of Europe. Peace with Canada and Mexico meant no large standing armies required to the north or south despite the long borders.

Natural resources- Huge reserves of coal, oil, iron, timber and the aforementioned farmland greatly helped 19th century US economy boom. State directed investment in building railroads transported coal and other resources across the country.

Protectionism- The US employed the highest import tariffs in it's history to protect it's domestic manufacturing base from cheaper foreign imports. Only once did they become competitive on the world market did it lower the tarrifs. E.g the average tarriff during 1870 was 44.6%, today it's less than 2%.