Capitalism, Politics, and Social Change: A Concise Analysis

Capitalism, Politics, and Social Change

The core of capitalist leadership, including the U.S., Europe, and Japan, extended to Latin America, Africa, and Oceania at the political level. Democratic systems were implanted in most countries, based on the recognition of individual freedoms, the division of power, and political pluralism.

Economically, a capitalist economy based on private property and free markets prevailed. Differences existed in the degree of intervention, favoring societies based on class and wealth.

Political Situation

Governments in Western countries leaned towards the center-right (liberal and Christian democratic) and center-left (social democratic).

Years of Growth

A period of elevated growth was based on:

• Advance advisory and technical support.
• The development of international trade.
• Progress in industrial technology across all economic sectors.
• Intervention in the economy.

Economic Recovery

Europe, the U.S., and Japan received aid (Marshall Plan) and created forms of economic cooperation, which crystallized in the foundation of the European Coal and Steel Community, the EEC (European Economic Community), and Euratom (European Atomic Energy Community).

Social Change

The extension of consumer societies led to the appearance of social movements in the 1960s, including the hippie movement and student protests, which staged revolts against consumerism and favored individual freedoms (May 1968).

Political Evolution

Two important political developments:

• The disappearance of military dictatorships in Europe, with Spain beginning its transition to democracy after Franco's death.
• The birth of Eurocommunism: European communist parties accepted access to power through parliamentary means.

The 1973 Crisis

Causes:

The main decision was by the Organization of Arab Petroleum Exporting Countries (OAPEC) to not sell crude oil to Western countries that supported Israel in the Yom Kippur War against Egypt and Syria, tripling the price of oil. Newly industrialized countries (NICs) became competitive.

Therefore:

High inflation, reduced demand, closure of large companies, and unemployment.

Political and Economic Measures

Implementation of neoliberal policies: reduction in public spending, budget cuts, flexibility in employment. Reduced power consumption and promotion of alternative energy sources. Adoption of measures to confront the industrial crisis: reduced production methods and a shift towards high-technology sectors.