The Crisis of Argentine Capitalism

By Paul H. Lewis | Go to book overview
Save to active project

Capital and Capitalists

By the end of the 1930s, Argentine industry was no longer an orphan. It attracted more investment and employed more labor than agriculture, and it enjoyed greater prestige among modern planners and politicians as being the key to national economic independence. But even though it had come a long way, its rate of progress had been uneven: great surges forward were separated by periods of slower growth. Table 4.1, which shows the rate and sources of capital accumulation at intervals between 1900 and 1945, helps to explain why.

Argentine capitalism moved ahead so quickly in the years preceding World War I obviously because it had an abundance of capital to work with. Between 1900 and 1914, capital accumulated at an average rate of about 9 percent a year. Meanwhile, the population grew by only 4 percent a year, leaving an appreciable net gain in the country's per capita wealth. This trend ended with the war. The rate of accumulation dropped sharply and steadily until, between 1917 and 1920, there was a net loss of capital. The war years had an average accumulation rate of only 1.5 percent that was not enough to keep pace with a 3 percent growth in the population.

After the war, the rate of accumulation began to increase again, recording an average of 2.4 percent annually during the 1920s: not as high as before but enough to keep up with the population's growth. Moreover, capital formation began to gather momentum as the decade wore on. Once again, however, progress was halted, first by the Great Depression and then by World War II. There was a net loss of capital in the early 1930s followed by a weak rally that lasted until war broke out again, after which there was almost complete stagnation. Considering that capital accumulation averaged only 1.8 percent a year from 1930 to 1945 while the population increased by about 2 percent, it is evident that Argentine capitalism had lost its earlier dynamism. Small wonder that capital-starved industry turned to labor-intensive methods.


Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Cite this page

Cited page

Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited page

Bookmark this page
The Crisis of Argentine Capitalism


Text size Smaller Larger
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen
/ 573

matching results for page

Cited passage

Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?