*6.+The+Rise+of+Capitalism

//The following has been adapted from Humanities Alive year 10 history textbook for the sole use of learning within the history classroom. Read the following and answer the questions below.

The United States of America in the 1920's was a Capitalist society. Capitalism is a system in which goods are made, distributed and exchanged by individual companies or people who are mostly free of the control of the government. At the core of Capitalism is the pursuit of personal profit.

The US constitution ensured that the government could not restrict its citizens too much, and there was no clear ruling class in the USA as there was in Europe. Before the 1930's, the American government upheld the rights of individuals to use their talents and hard work for personal gain. This supports the system of Capitalism.

During the Roaring 20's Capitalism generated great wealth in America. However, more goods were being made than could be sold, and so the seeds of economic instability began to grow. In 1929, a sudden lack of confidence in the stock markets spread, and people began selling their stocks in the hope that they would not lose the money they had invested in their companies. Because of this frenzied selling of stocks, many businesses collapsed and many people lost their jobs.

FOCUS QUESTIONS: //
 * 1) Define Capitalism.
 * 2) How did the American government support Capitalism?
 * 3) What caused 'the seeds of economic instability' to grow?
 * 4) // What happened in 1929? //