Lecture 43: The 20th Century
In the most developed capitalist societies, led by the U.S., average
consumption levels rose, creating a large, afÀ uent middle class. AfÀ uence
deÀ ected the revolution Marx had anticipated, as prosperous wage earners
became contented supporters of consumer capitalism. Consumer capitalism
also generated a new rhythm of change. For the ¿ rst time in history, major
economic crises (such as the Depression) were more likely to be caused
by overproduction than underproduction. We can describe these new
cycles of boom and bust as “Keynesian” cycles. Whereas in all earlier
societies, slow growth had
limited consumption, in the
era of developed capitalism,
consumption became the
main driver of growth.Yet as living standards rose
in the developed capitalist
societies, global inequalities
increased. Between 1913
and 1992, the gap between
average income levels in the
poorest and wealthiest countries grew from 11:1 to 72:1. Poverty affected
health and life expectancies. In 2000, life expectancies in the U.S. were 74
(for men) and 80 (for women); in Burkina Faso in West Africa, they were
45 for men and women. Land shortages forced many peasants off the land,
and the number living in extreme poverty increased. Paul Harrison’s vivid
accounts of life in Burkina Faso show what this meant to individuals. Is the
widening gap a warning of new crises? Or will the living standards of the
very poor slowly rise as consumer capitalism spreads to regions where, so
far, it has been experienced just by elite groups?We have seen that, far from slowing, the pace of change continued to
accelerate in the 20th century, reshaping societies throughout the world in the
process. This suggests that, far from the revolution of modernity being over,
as some have claimed, it may be just beginning. ŶAfÀ uence deÀ ected the revolution
Marx had anticipated, as prosperous
wage earners became contented
supporters of consumer capitalism.
Consumer capitalism also
generated a new rhythm of change.