Boeing and Capitalism in the United States of America
This study investigates American capitalism in a historic perspective. The paper then proceeds to examine the issue on a meso-level with its relation to the company Boeing. Finally it discusses the various entrepreneurial decisions and their impact on the success and failures of the corporation. The approach has been reading relevant historical books, finding articles on the Internet and interpreting different views and opinions such as the theories of Schumpeter and Fligstein. The research shows that the American capitalism has changed towards a greater use of intervention that differs from the very laissez fare conditions ...view middle of the document...
The economy of America has a massive impact on the rest of the world, which is why we find it interesting to study the development of capitalism in this exact country. The United States of America has been continuously developing over the past decades. Numerous companies founded in the United States have been extremely significant in terms of the nation’s economic growth. The Boeing Company is a multinational aerospace corporation and is currently the largest exporter in value in the U.S. The company has been strongly influenced by the development that has taken place in the U.S. in the period of 1950 and 2012. Boeing is therefore the company we have chosen to focus on in relation to the capitalism in the U.S. The following report aims to study the development of capitalism in the U.S. in the abovementioned timeframe, and in relation to Boeing we are concentrating on some specific characteristics in the American capitalism; the relationship between corporation and state, globalization and the technological development. After a brief description of these characteristics follows an analysis on how this development in the U.S. has influenced Boeing – and vice versa. Furthermore, the analysis looks into what entrepreneurial decisions Boeing has made – and these decisions are hereafter debated in the discussion section.
Phases of American capitalism
American capitalism has gone through several stages. From the founding in 1776 American capitalism was build on the factors of production land and labor. This period up until the mid 19th century was also build on a lot of immigration. The state intervened in the free market with protectionism such as tariffs. On the national level however the state took more of a laissez faire approach. The state did however partake in the building of transportation infrastructure. Slaves were also an important driver for American capitalism in this period, but this was changed with the civil war (1861-1865).
In the period lasting the last half of the 19th century a legal framework implementing limited liability were established to encourage entrepreneurship. The state continued to utilize protectionism. It was also in this period that investment in marketing, manufacturing and management was first seen. Professional management was established so that not only company owners were managers. Investments in manufacturing allowed for economies of scale. The importance of marketing also became apparent in this phase of American capitalism.
The first half of the 20th century was a period wherein big business became more and more common. This was sparked by the invention of the assembly line and the ensuing mass production. The state kept applying protectionism whilst the great depression of the 1930s caused a centralization of government power with state matters turning into federal matters.
The period from the middle of the 20th century up until the present day began with the US as a leading economic power as the...