ABSTRACT
Most American politicians and citizens ignored its operation, when the dynamic and modern economies of Japan and the Federal Republic of Germany challenged US supremacy. The focus on nationalism as the fundamental reality of the modern world had masked the reality of an interconnected and interdependent international economy. The merchants lacked the autonomy, wealth and security to produce an economy with a strong urban middle class and rising standard of living. The special features of Europe conducive to economic growth became more obvious as the Middle Ages gave way to the Renaissance. The agricultural, commercial, and industrial wealth of Western Europe burgeoned amidst political freedom, economic competition and intellectual stimulation. Industrialism consequently became an important force in western Europe in the early 19th century. The wealth, created by industrialism in Germany and the United States, found its way into the pockets of the middle class and wealthy.
