Introduction-Business at the turn of the Century: .

             A little more than a hundred years earlier, United States was an isolated country and the attitude kept developing during that period. The Senate did not want to ratify the Versailles Peace Treaty that ended the First World War and went to an extent that the country did not even join the League of Nations. Free migration into the country that existed earlier was stopped, business tariffs for imports were increased, and migration from Asia was practically stopped. Yet, the country had some special capabilities and one of that were the regularities in the modes of production in the country. The production in America made simpler and rougher goods, used much less of skilled labor since machines and organizations succeeded in taking over a lot of their responsibilities. (Delong 1997) Thus some methods of American business had been developed even before the start of the twentieth century and this may have given the country the lead.

             Early Business Growth: .

             It is difficult to ascribe to any particular reason the changes that took place in the American economy during the period before the Second World War America was not one of the leaders of the Western World then as can be seen from the fact that both the World Wars were started by European countries and fought for quite some time by those countries, and America only entered the conflict when it was felt that the tradition of democracy was about to be lost. Yet, there were presidents like Hoover who felt that decline of economy was hurting the American labor. This view had also been taken in 1917 when the government had decided to nationalize the single largest of American industries at that time - the railroads. (Vedder 1997).

             Influence of Politics (Reform): .

             To a certain extent, the matters of politics and industrial changes were related and the biggest amount of relationship is found in the case of election of one of the most charismatic of American presidents, Frederick D Roosevelt.