A+Guide+To+Economics

ECONOMICS toc

= =  By: LYNN MOON & SOOJIN KIM & JOSHUA KIM

 Although America began as a system of colonies meant to simply support the motherland BRITAIN, the US economy later on grew really diverse. With periods of ups and downs, the American economy is a big part of its history.

=**ECONOMIC GROWTH** =

Colonial Economy
 //**This keynote will cover....** //  mercantilism, salutary neglect, colonies, Eli Whitney - interchangeable parts - cotton gin, market economy 

Antebellum Economy
//The United States experiences massive growth of economy in the 19th century //

//**North**// -the northern states were bound together by improved transportation and a high rate of economic growth based on both commercial farming and industrial innovation -the development of mechanized textile mills enabled rapid industrial growth in the north -after 1840, industrialization spread rapidly to northeastern states other than New England -new factories produced shoes, sewing machines, clothing, firearms, precision tools, etc -railroad emerges as the largest industry (connects midwest and northeast states) -develop a national economy -want protective tariff

//**South**// -agriculture was the foundation of the South's economy (cotton) -by 1850s, cotton provided two-thirds of all US exports and tied the South's economy to Britain -the increasing demand was met by the development of cotton gin and land expansion to the west -want no tariff -want inflation

Post Civil War Economy
//By 1900, the US had emerged as the leading industrial power in the world//

factors that helped the rapid growth of US economy were: //**1. abundant labor supply**// //**2. growing population**// //**3. advanced transportation**// railroads -created a market fro goods that was national in scale -> encouraged mass production, mass consumption, and economic specialization -resources used in railroad-building promoted the growth of other industries (coal and steel) //**4. foreign investments**// //**5. increased productivity**// increased productivity created a need for businesses to find ways of selling their merchandise to a large public -large department stores (Macy's), chain stores (5 & 10 cent store), mail-order companies (sears, roebuck and montgomery ward) -advertising and new marketing techniques also created a consumer culture in which "going shopping" became a favorite pastime //**6. friendly government policies**// federal government -provided railroad companies with huge subsidies (loans & land grants)

economic growth also caused sharper class divisions among the rich, the middle class, and the poor middle class: -growth of large corporations introduced the need for thousands of white-collar workers

<span style="font-family: Arial,Helvetica,sans-serif; font-size: 110%;">**Gilded Age Economy**
<span style="font-family: Arial,Helvetica,sans-serif; font-size: 12px; line-height: normal; margin: 0px; padding: 0px;">Major Economic developments during the Gilded Age <span style="font-family: Arial,Helvetica,sans-serif; font-size: 12px; line-height: normal; margin: 0px; padding: 0px;">- as more and faster machines became available to manufacturers, businessmen found that their cost per unit decreased as the number of units they produced increased. <span style="font-family: Arial,Helvetica,sans-serif; font-size: 12px; line-height: normal; margin: 0px; padding: 0px;">- the concept of **economies of scale** - reduction in cost per unit resulting from increased production <span style="font-family: Arial,Helvetica,sans-serif; font-size: 12px; line-height: normal; margin: 0px; padding: 0px;">- assembly line production: although it started after Eli Whitney's invention of interchangeable parts, it reached a new level in Ford's plants during the Gilded Age

//**Captains of Industry: Rockefeller and Carnegie**// <span style="font-family: Arial,Helvetica,sans-serif;">** vs ** <span style="font: 12px/19px Arial,Helvetica,sans-serif; margin: 0px; padding: 0px;">//**vertical integration**// - a company controls every stage of the industrial process (US steel corporation, andrew carnegie) = LEGAL TODAY <span style="font: 12px/19px Arial,Helvetica,sans-serif; margin: 0px; padding: 0px;">//**horizontal integration**// - competitors are under a single corporate umbrella (standard oil trust, Rockefeller) = ILLEGAL TODAY

//<span style="font-family: Arial,Helvetica,sans-serif; font-size: 13px; line-height: 19px; margin: 0px; padding: 0px;">**Influences:** // <span style="font-family: Arial,Helvetica,sans-serif; font-size: 13px; line-height: 19px; margin: 0px; padding: 0px;">1) the rise of Social Darwinism - survival of the fittest <span style="font-family: Arial,Helvetica,sans-serif; font-size: 13px; line-height: 19px; margin: 0px; padding: 0px;">2) Gospel of Wealth

//<span style="font-family: Arial,Helvetica,sans-serif; margin: 0px; padding: 0px;">** Problems: ** // <span style="font-family: Arial,Helvetica,sans-serif; font-size: 12px; line-height: normal; margin: 0px; padding: 0px;">1) rapid growth required lots of money ⇒ businessmen borrowed huge sums, and when their businesses occasionally failed, bank failures could result from this. <span style="font-family: Arial,Helvetica,sans-serif; font-size: 12px; line-height: normal; margin: 0px; padding: 0px;">2) poverty, such as crime, disease, and the lack of livable housing for a rapidly expanding population <span style="font-family: Arial,Helvetica,sans-serif; font-size: 12px; line-height: normal; margin: 0px; padding: 0px;">3) unsanitary factory conditions and city life

Progressive Era Economy
-1901~1918 -progressive thinkers adopted the new philosophy of pragmatism because it enabled them to challenge fixed notions that stood in the way of reform (rejected laissez-faire theory)

-Frederick Winslow Taylor discovered ways of organizing people in the most efficient manner -gained widespread acceptance among progressives
 * //Scientific Management//**

-raised the tariff on most import
 * //Payne-Aldrich Tariff 1909//**

-substantially lowered tariffs for the first time in over 50 years -to compensate for the reduced tariff revenues, it included a graduated income tax rate
 * //Underwood Tariff 1913//**

-federal reserve act 1914 - created a national banking system with 12 district banks supervised by a federal reserve board -ever since, used federal reserve notes or the dollar bills issued by FRB to purchase goods and services
 * //Banking Reform//**

-clayton antitrust act - strengthened the provisions in the Sherman Antitrust Act for breaking up monopolies -federal trade commission - new regulatory agency to investigate against any unfair trade practice
 * //Business Regulation//**

-12 regional federal farm loan banks were established to provide farm loans at low interest rates
 * //Federal Farm Loan Act 1916//**

WWI Economy
-the US helped the allies economically 1. shipping munitions and food to the allies 2. War Industries Board set production priorities and established centralized control over raw materials and prices to expedite the mobilization 3. the Food Administration encouraged American households to eat less meat and bread so that more food could be shipped abroad for the French and British troops 4. the Fuel Administration directed efforts to save coal - nonessential factories were closed, and daylight saving time went into effect 5. Taft helped arbitrate disputes between workers and employers as head of the National War Labor Board - wages rose, 8 hour work day became more common, union membership increased
 * //Mobilization//** - the US had to mobilize its vast economic resources fast enough to fight back Germany

-paying war cost was a huge problem -Wilson's war government raised $33 billion in 2 years by: 1. conducting four massive drives to convince Americans to put their savings into federal government Liberty Bonds 2. increased both personal income and cooperate taxes 3. placed an excise tax on luxury goods
 * //Finance//**

//**Demobilization**// -more competition for work as 4 million American men who left to fight for the nation came back to work -the business boom of wartime also went flat because factory orders for war production fell off -US farmers suffered from falling prices because European farm products were back on the market -in 1921, business plunged into a recession - 10% unemployment

1920s Economy
-the Republicans accepted the idea of limited government regulation as an aid to stabilizing business -the republican party believed in the idea that the nation would benefit if business and the pursuit of profits took the lead in developing the economy
 * //Republican Doctrine//**

//**Warren Harding**// 1. reduction in the income tax 2. increase in tariff rates - Fordney-McCumber Tariff Act of 1922 3. establishment of the Bureau of the Budget - procedures for all government expenditures to be placed in a single budget for Congress to review and vote on

//**Calvin Coolidge**// -"Coolidge Prosperity"

//**Economic development**// -the US entered a period of business prosperity from 1922 till 1928 and ended in economic disaster in 1929 -the unemployment was usually below 4% -standard of living for Americans improved significantly -however, not everyone enjoyed the prosperity - farmers in particular did not share in the booming economy

//**Causes of Business Prosperity**// 1. Increased productivity -manufacturing process was made more efficient by the adoption of mass production -in 1914, Henry Ford had perfected assembly line for manufacturing automobiles -> increase in worker productivity 2. Energy technologies -use of oil and electricity increased 3. Government policy -government in the 1920s favored the growth of big business by offering corporate tax custard not enforcing the antitrust laws

//**Farm Problems**// -prospered during WWI (1916-1918) when the crop prices were high because of wartime demands -new technologies (chemical fertilizers, gasoline tractors) helped the farmers to increase productivity, but increased productivity only lowered the commodity prices

//**Dawes Plan 1924**// -the US banks would lend Germany money to rebuild its economy and pay reparations to Britain and France -> Britain and France would use the reparation money from Germany to pay back war debts to the US -however, ended in 1929 when the stock market crashed

<span style="font: 17px/25px Arial; letter-spacing: 0px; margin: 0px;">**NEW DEAL Economy**
<span style="font: 13px/19px Arial; letter-spacing: 0px; margin: 0px;">October 29th, 1929 : Black Tuesday -- stock market crash. the market dropped 12.8 percent and marked the beginning of the GREAT DEPRESSION. <span style="font: 13px/19px Arial; letter-spacing: 0px; margin: 0px;">Causes include buying stock “on-margin” (where people bought stock with borrowed $). The method worked when the market was growing, but as the market started failing, banks demanded payment for loans and people had to sell their stocks, causing market to plummet even faster. <span style="font: 13px/19px Arial; letter-spacing: 0px; margin: 0px;">Before the Crash : less than 5% <span style="font: 13px/19px Arial; letter-spacing: 0px; margin: 0px;">1939 : unemployment peak at 17%

<span style="font: 13px/19px Arial; letter-spacing: 0px; margin: 0px;">a) RELIEF: FERA 1933, NIRA 1933, PWA 1933, Fair Labor Standards Act 1938, CCC 1933 <span style="font: 13px/19px Arial; letter-spacing: 0px; margin: 0px;">b) RECOVERY : AAA 1933, TVA 1933, Emergency Relief Appropriations Act 1935, Farm Security Administration 1937
 * 1) <span style="font: 13px/19px Arial; letter-spacing: 0px;">REFORM : Glass-Steagall Act 1933, FDIC 1933, Security and Exchange Act 1934, Social Security Act 1935, National Labor Relations Act 1935

//**<span style="font-family: Arial; font-size-adjust: none; font-size: 13px; font-stretch: normal; font-variant: normal; letter-spacing: 0px; line-height: 19px; margin: 0px;">Franklin Delano Roosevelt : The New Deal (1930s) **// It refers to the economic and political policies of FDR’s administration in the 1930s. They aimed to solve the problems of the Great Depression by providing relief for the unemployed and launching efforts to stimulate economic recovery The New Deal built on reforms of the progressive era to expand greatly an American-style welfare state. It aimed a 3 R’s -- relief, recovery, and reform.

//**<span style="font-family: Arial; font-size-adjust: none; font-size: 13px; font-stretch: normal; font-variant: normal; letter-spacing: 0px; line-height: 19px; margin: 0px;">“First Hundred Days” (March 9 ~ June 16, 1933) **// These first hundred days was the first hundred days of FDR’s administration. An unprecedented nuber of reform bills were passed by Democratic Congress to launch the New Deal. Some of these acts include Emergency Banking Relief Act, Civilian Conservation Corps (CCC), Federal Emergency Banking Relief Act (FERA), Tennessee Valley Authority (TVA), Agricultural Adjustment Act (AAA), National Industrial Recovery Act (NIRA), Glass-Steagall Act, and Public Works Administration (PWA).

//**<span style="font-family: Arial; font-size-adjust: none; font-size: 11.5px; font-stretch: normal; font-variant: normal; letter-spacing: 0px; line-height: normal; margin: 0px;">__Glass-Steagall Banking Reform Act (1933)__ **// This law created the Federal Deposit Insurance Corporation, which insured individual bank deposits and ended a century-long tradition of unstable banking that had reached a crisis in the Great Depression.

//**<span style="font-family: Arial; font-size-adjust: none; font-size: 13px; font-stretch: normal; font-variant: normal; letter-spacing: 0px; line-height: 19px; margin: 0px;">“Second Hundred Days” (1935) **// In the summer of 1935, the Second New Deal was launched and focused on relief and reforms. These second batch of hundred days released acts like Works Progress Administration (WPA), Resettlement Administration (RA), National Labor Relations (Wagner) Act, and Rural Electrification Administration.

1940s~1960s Economy
-many feared that the end of the war might mean the return of economic hard times -however, the war years had increased the per-capita income of Americans ㄴincreased income was tucked away in savings accounts, since there were few consumer goods to buy during wartime ㄴpent-up consumer demand for autos and housing combined with government road-building projects quickly overcame the ㄴeconomic uncertainty after the war and introduced an era of unprecedented prosperity and economic growth -by the 1950s, Americans enjoyed the highest standard of living

//**The Servicemen's Readjustment Act of 1944 (GI Bill of Rights)**// -provided the retrying GIs with vocational education at government expense -veteran also received over $16 billion in low-interest, government-backed loans to buy homes and farms and to start businesses

//**Suburban growth**// -the desperate need for housing after the war resulted in a construction boom -low interest rates on mortgages that were both government-insured and tax deductible made the move from city to suburb affordable for almost any family of modest means

//**Sunbelt**// -a warmer climate, lower taxes, and economic opportunities in defense-related industries attracted many GI's and their families to the Sunbelt states from Florida to California -transferred tax dollars from northeast and Midwest to the South and West

//**Employment Act of 1946**// -created Council of Economic Advisers to counsel both the president and congress on means of promoting national economic welfare

//**Inflation**// -the Congress loosened its controls of the Office of Price Administration -> inflation rate of almost 25%

//**Eisenhower's Modern Republicanism**// -focus on balancing the budget after years of deficit spending -accepted most of the New Deal programs -social security was extended to 10 million more citizens -minimum wage was raised -additional public housing was built -soil-bank program - reduced farm production to increase farm income

//**Causes of Consumer-driven Mass Economy**// 1. advertising 2. paperbacks and records 3. television

//**JFK's New Frontier Programs**// -aid to education, federal support of health care, urban renewal, civil rights -most passed under LBJ -economically, faced down big steel executives over an inflationary price increase, achieved price rollback -economy was stimulated by increased spending for defense and space exploration

//**LBJ's Domestic Plans**// -determined to expand the social reforms of the new deal -expanded version of kennedy's civil rights bill -income tax cut -> increase in jobs, consumer spending, long period of economic expansion -War on Poverty -create Office of Economic Opportunity (OEO) -head start for preschoolers -job corps for vocational education, literacy programs, legal services -reduce the number of poor families -Great Society -medicare, medicaid, education act, new immigration law (repeal national origins act), funding for education and housing -Vietnam war -> hurt his domestic plans by resulting in higher taxes and inflation

Nixon Economy
//**Environment**// -EPA (environmental protection agency), OSHA (Occupational Health and Safety Admin) to protect the environment -clean air act, endangered species act -awareness of human activity on environment, congress became unwilling to support large irrigation projects in the west -greater deficit spending -space program, Vietnam war, great society programs, environment clean up spendings -Johnson and Nixon did not want to raise taxes -> no new revenue -> inflation

//**Recession**// -wanted to reduce federal spending and balance budget, but inflation rose -so directed FRB to raise interest rates to slow inflation -nonetheless, prices still rose -> labor union demanded larger wage increases -unemployment rose from 4 to 6% b/c baby boomers began to enter the work force -stock values plunged more than 35% -stagflation (stagnation + inflation) -Nixon imposed a mandatory 90 day wage and price freeze -thereafter, wages and prices were subject to federal guidelines -Nixon tried to limit federal spending by cutting the budget for social programs, scientific research, education -refuse to spend money that congress had appropriated for programs

//**International**// -American industrial capacity had been running at maximum to catch up with the worldwide demand for products -however, most demands were satisfied, and japan, germany caught up -high value of dollar discouraged US export -nixon devalued the dollar, but did not help much -1973, OPEC's oil embargo to the US + 400% price increase -b/c US supported Israel in the yom kippur war -hit hard the US (heavily oil-dependent industry)

//**Consequence**// -finger-pointing -corporates blamed environmental rules (cost them jobs and profits) -workers blamed corporate inefficiency, and the disdain of business for the welfare of the country -wealthy blamed social programs (drained the economy) -minorities / poor urban dwellers blamed the society that disenfranchised a quarter of the population -republicans and democrats blamed each other for the expense of the vietnam war -wives began to enter the workforce -> more competition for work -speed limits to save gas, turn the thermostat down to 68 degrees, gasoline was rationed -began to rely more on nuclear, coal-burning power plants, government mandated automakers to be more conserving of petroleum

Reagan Economy
-government is not the solution to our problem, government is the problem -decentralize and deregulate federal agencies to reduce the size of the federal government -reductions in welfare, food stamps, student loans, income taxes -Reaganomics -lower tax would give people more money to spend -> generate more goods and jobs and grow the economy -reduced the size and funding for the nation's military to stabilize the economy -end to the cold war -> signed a treaty to ban all intermediate-range nuclear missiles from europe -we are the change

=<span style="color: #008080; font-family: Arial,Helvetica,sans-serif; font-size: 22px; margin: 0px; padding: 5px 0px 0px;">**IMPORTANT TARIFFS** = <span style="font-family: Arial,Helvetica,sans-serif;"> *Customs Duties - Hamilton's Plan

<span style="font-family: Arial,Helvetica,sans-serif;">***Tariff of 1816**
<span style="font-family: Arial,Helvetica,sans-serif;"> - part of the AMERICAN SYSTEM, protected War Baby Industires <span style="font-family: Arial,Helvetica,sans-serif;">- 1st protective tariff

<span style="font-family: Arial,Helvetica,sans-serif;">***Tariff of 1824**
<span style="font-family: Arial,Helvetica,sans-serif;"> - 2nd protective tariff <span style="font-family: Arial,Helvetica,sans-serif;">- sectionalism <span style="font-family: Arial,Helvetica,sans-serif;">- Calhoun opposed it

<span style="font-family: Arial,Helvetica,sans-serif;">**†** Tariff of 1828
<span style="font-family: Arial,Helvetica,sans-serif;"> -"Tariff of Abominations" <span style="font-family: Arial,Helvetica,sans-serif;">- led to Nullification Crisis

<span style="font-family: Arial,Helvetica,sans-serif;"> Tariff of 1833
<span style="font-family: Arial,Helvetica,sans-serif;"> - "Compromise Tariff" <span style="font-family: Arial,Helvetica,sans-serif;">- Ended Nullification Crisis. Reduced tariff rates.

<span style="font-family: Arial,Helvetica,sans-serif;"> Tariff of 1842
<span style="font-family: Arial,Helvetica,sans-serif;"> -"Black tariff" <span style="font-family: Arial,Helvetica,sans-serif;">- reverses the compromise tariff -> sharp decline in international trade

<span style="font-family: Arial,Helvetica,sans-serif;"> Tariff of 1846
<span style="font-family: Arial,Helvetica,sans-serif;"> - "Walker Tariff" <span style="font-family: Arial,Helvetica,sans-serif;">- democrats cut the high tax rates set by Whigs <span style="font-family: Arial,Helvetica,sans-serif;">- One of the lowest Tariffs in history. - Increased trade & revenue, relations with Britain

<span style="font-family: Arial,Helvetica,sans-serif;"> Tariff of 1861
<span style="font-family: Arial,Helvetica,sans-serif;"> - "Morrill Tariff" <span style="font-family: Arial,Helvetica,sans-serif;">- raised the tariff (possible because many southern states declared secession) <span style="font-family: Arial,Helvetica,sans-serif;">- Passed by government to raise money for Civil War <span style="font-family: Arial,Helvetica,sans-serif;">- Can be seen as a cause of the panic

<span style="font-family: Arial,Helvetica,sans-serif;">**† Tariff of 1890**
<span style="font-family: Arial,Helvetica,sans-serif;"> - McKinley Tariff - Very High. PRO-BUSINESS REGULATION - Direct cause of Panic of 1893 - Hurt farmers since they were forced to pay high prices for domestic farm tools while selling products for cheap prices.

<span style="font-family: Arial,Helvetica,sans-serif;"> Tariff of 1897
<span style="font-family: Arial,Helvetica,sans-serif;"> - "Dingley Tariff

<span style="font-family: Arial,Helvetica,sans-serif;"> Tariff of 1909
<span style="font-family: Arial,Helvetica,sans-serif;"> - "Payne-Aldrich Tariff" - First change since Dingley Tariff - Hurt Taft's support among progressives - Raised tariff on print paper which angered progressives - Led to Republican's loss in mid-term election of 1910 & formation of Bull Moose in 1912

<span style="font-family: Arial,Helvetica,sans-serif;"> † **Tariff of 1913**
<span style="font-family: Arial,Helvetica,sans-serif;"> - "Underwood Tariff" <span style="font-family: Arial,Helvetica,sans-serif;">- Wilson's Plan. Tariff went from 40% to 25%.

<span style="font-family: Arial,Helvetica,sans-serif;">**Tariff of 1933**
<span style="font-family: Arial,Helvetica,sans-serif;"> **-** "Fordney-McCumber Tariff" - 38.5%

<span style="font-family: Arial,Helvetica,sans-serif;">**Tariff of 1930**
<span style="font-family: Arial,Helvetica,sans-serif;"> "Hawley-Smoot Tariff" - 60% - created Trade Protectionism and deepened the global depression. one of the highest tariffs in US history. <span style="font-family: Arial,Helvetica,sans-serif;"> † -> must know <span style="font-family: Arial,Helvetica,sans-serif;"> *-> should know <span style="font-family: Arial,Helvetica,sans-serif;"> none -> kinda know

=<span style="color: #008080; font-family: Arial,Helvetica,sans-serif; font-size: 1.3em; margin: 0px; padding: 5px 0px 0px;">**PANICS** = <span style="font-family: Arial,Helvetica,sans-serif;"> - deflation (value of the money ↓) <span style="font-family: Arial,Helvetica,sans-serif;"> - large increases in unemployment, bankruptcies, and imprisonment for debt <span style="font-family: Arial,Helvetica,sans-serif;"> - Westerners called for land reform and opposition to the national bank || <span style="font-family: Arial,Helvetica,sans-serif; margin: 0px; padding: 0px;">-Closure of the 2nd B.U.S. which caused private banks to withdraw money <span style="font-family: Arial,Helvetica,sans-serif; margin: 0px; padding: 0px;">-Banks issue too much money -> inflation <span style="font-family: Arial,Helvetica,sans-serif; margin: 0px; padding: 0px;">-over-speculation ||= <span style="font-family: Arial,Helvetica,sans-serif; margin: 0px; padding: 0px;">-Almost 40% US banks closed <span style="font-family: Arial,Helvetica,sans-serif; margin: 0px; padding: 0px;">-record high unemployment || <span style="font-family: Arial,Helvetica,sans-serif;"> -Spread due to fear of railroad failures <span style="font-family: Arial,Helvetica,sans-serif;"> -UK removed funds from US banks <span style="font-family: Arial,Helvetica,sans-serif;"> -Fall of grain prices <span style="font-family: Arial,Helvetica,sans-serif;"> 1857 Dred Scott case caused political fears ||= <span style="font-family: Arial,Helvetica,sans-serif;">-Stock market declined 66% compared with inflation <span style="font-family: Arial,Helvetica,sans-serif;"> -Spread to Europe, S. America, and Far East <span style="font-family: Arial,Helvetica,sans-serif;"> -No real recovery until Civil War ||
 * = <span style="font-family: Arial,Helvetica,sans-serif;">PANICS ||= <span style="font-family: Arial,Helvetica,sans-serif;">Causes ||= <span style="font-family: Arial,Helvetica,sans-serif;">Effects ||
 * = ==<span style="border-collapse: separate; font-family: Arial,Helvetica,sans-serif;">Panic of 1819 == ||= <span style="font-family: Arial,Helvetica,sans-serif;">- the fault of the Second Bank of the United States -> too late to take control of inflation ||= <span style="font-family: Arial,Helvetica,sans-serif;">- Many state banks closed
 * = ==<span style="border-collapse: separate; font-family: Arial,Helvetica,sans-serif;">Panic of 1837 == ||= <span style="font-family: Arial,Helvetica,sans-serif; margin: 0px; padding: 0px;">-Specie Circular
 * = ==<span style="border-collapse: separate; font-family: Arial,Helvetica,sans-serif;">Panic of 1857 == ||= <span style="font-family: Arial,Helvetica,sans-serif;">-Started with bank failures in Ohio Life Insurance and Trust CO.

<span style="font-family: Arial,Helvetica,sans-serif;"> -Bank Acts <span style="font-family: Arial,Helvetica,sans-serif;"> -Overspeculation in the Railroad <span style="font-family: Arial,Helvetica,sans-serif;"> -Massive Corruption starting Black Friday <span style="font-family: Arial,Helvetica,sans-serif;"> -Chicago fire of 1871 <span style="font-family: Arial,Helvetica,sans-serif;"> -Equine Influenza <span style="font-family: Arial,Helvetica,sans-serif;"> -Coinage Act 1873 which hurt silver miners ||= <span style="font-family: Arial,Helvetica,sans-serif;">-Chain reaction, bank fail, stock market crash <span style="font-family: Arial,Helvetica,sans-serif;"> -NYS closed for 10 days <span style="font-family: Arial,Helvetica,sans-serif;"> -89 of 364 RR went bankrupt <span style="font-family: Arial,Helvetica,sans-serif;"> -18,000 businesses failed <span style="font-family: Arial,Helvetica,sans-serif;"> -high unemployment <span style="font-family: Arial,Helvetica,sans-serif;"> -Various strikes, ex. Great Railroad Strike <span style="font-family: Arial,Helvetica,sans-serif;"> -Voters turned against Republicans and voted for Democrats <span style="font-family: Arial,Helvetica,sans-serif;"> -End of Depression coincides with New Immigration || <span style="font-family: Arial,Helvetica,sans-serif;"> -Overbuilding in RR again <span style="font-family: Arial,Helvetica,sans-serif;"> -Sherman Silver Purchase Act 1890 = shortage of gold <span style="font-family: Arial,Helvetica,sans-serif;"> -McKinley Tariff 1893 ||= <span style="font-family: Arial,Helvetica,sans-serif;">-High unemployment -> Coexy's Army 1894 <span style="font-family: Arial,Helvetica,sans-serif;"> -Wave of Strikes (ex. Pullman Strike 1894) <span style="font-family: Arial,Helvetica,sans-serif;"> -Closure of silver mines <span style="font-family: Arial,Helvetica,sans-serif;"> -Economic issues of the Election of 1896 <span style="font-family: Arial,Helvetica,sans-serif;"> -Eventually ended by 1896 || <span style="font-family: Arial,Helvetica,sans-serif;"> -Failed attempt to corner copper <span style="font-family: Arial,Helvetica,sans-serif;"> -Collapse of Knickerbocker Trust Co., NYC's 3rd largest trust company <span style="font-family: Arial,Helvetica,sans-serif;"> -Loss of confidence in banking, people begin to withdraw funds ||= <span style="font-family: Arial,Helvetica,sans-serif;">-JP Morgan intervened and donate money to help banking system and stop the panic. <span style="font-family: Arial,Helvetica,sans-serif;"> -1908 Commission created which led to Federal Reserve System || <span style="font-family: Arial,Helvetica,sans-serif;"> -Bank Failures <span style="font-family: Arial,Helvetica,sans-serif;"> -Fall in prices of Agriculture <span style="font-family: Arial,Helvetica,sans-serif;"> -Credit Purchases <span style="font-family: Arial,Helvetica,sans-serif;"> -Unequal income distribution <span style="font-family: Arial,Helvetica,sans-serif;"> -High Tariffs ||= <span style="font-family: Arial,Helvetica,sans-serif;">-Banks closed, Families split up <span style="border-collapse: collapse; font-family: Arial,Helvetica,sans-serif;">-Bonus Army <span style="border-collapse: collapse; font-family: Arial,Helvetica,sans-serif;">-New Deal, Bank reforms || =<span style="color: #008080; font-family: Arial,Helvetica,sans-serif; font-size: 1.3em; margin: 0px; padding: 5px 0px 0px;">BRIEF PRESIDENTIAL OVERVIEW = <span style="font-family: Arial,Helvetica,sans-serif;"> George Washington <span style="font-family: Arial,Helvetica,sans-serif;">-Alexander Hamilton's Plan began
 * = ==<span style="border-collapse: separate; font-family: Arial,Helvetica,sans-serif;">Panic of 1873 == ||= <span style="font-family: Arial,Helvetica,sans-serif;">-Bankruptcy of Jay Cooke & Company
 * = ==<span style="border-collapse: separate; font-family: Arial,Helvetica,sans-serif;">Panic of 1893 == ||= <span style="font-family: Arial,Helvetica,sans-serif;">-Bankruptcy of Philadelphia and Reading Railroad
 * = ==<span style="border-collapse: separate; font-family: Arial,Helvetica,sans-serif;">Panic of 1907 == ||= <span style="font-family: Arial,Helvetica,sans-serif;">-NY Stock Exchange fell by 50% from previous year
 * = ==<span style="border-collapse: separate; font-family: Arial,Helvetica,sans-serif;">The Great Depression == ||= <span style="font-family: Arial,Helvetica,sans-serif;">-Stock Market Crash of 1929

<span style="font-family: Arial,Helvetica,sans-serif;"> Thomas Jefferson <span style="font-family: Arial,Helvetica,sans-serif;">-Embargo Act, Non-Intercourse Act, & Macon Bill No.2

<span style="font-family: Arial,Helvetica,sans-serif;">Madison ~ Adams <span style="font-family: Arial,Helvetica,sans-serif;">All about keeping the new government economy alive and trying to make it stronger. <span style="font-family: Arial,Helvetica,sans-serif;">1816 American System tries to boost American nationalism by proposing 2nd National B.U.S. and connecting the regions together and the Tariff of 1816 was the first protective tariff to protect War Baby Industries.

<span style="font-family: Arial,Helvetica,sans-serif;"> Andrew Jackson <span style="font-family: Arial,Helvetica,sans-serif;">-Pet Banks <span style="font-family: Arial,Helvetica,sans-serif;">- Killed the 2nd Bank <span style="font-family: Arial,Helvetica,sans-serif;">- Specie Circular

<span style="font-family: Arial,Helvetica,sans-serif;">Martin Van Buren - Dealt with the Panic caused by Jackson's mistakes from removing all the money from the Bank and his Specie Circular

<span style="font-family: Arial,Helvetica,sans-serif;">William Harrisson <span style="font-family: Arial,Helvetica,sans-serif;">- Died before doing much

<span style="font-family: Arial,Helvetica,sans-serif;">John Tyler - Vetoed Charter for Bank

James Polk - Walker Tariff of 1846

Zachary Taylor ~ Millard Fillmore ~ Franklin Pierce ~ James Buchanan ~ Abraham Lincoln ~ Andrew Johnson - Didn't really contribute much to economy because of sectional problems or the Reconstruction problems

Ulysses S. Grant - marked with business corruption : - "Black Friday" Scandal - Credit Mobilier Scandal - "Salary Grab Act" - Sanborn Contract Fraud - Whiskey Ring Fraud - Bribing of Belknap

Rutherford B. Hayes - Greenback Debate

Grover Cleveland - Tariff Reduction - Repeal of <span style="color: #222222; font-family: Georgia,'Times New Roman',Times,serif; font-size: 14px; line-height: 21px;">Bland-Allison Silver Purchase Act of 1878

Benjamin Harrison - Sherman Silver Purchase Act Trading silver for Tariff Support -McKinley Tariff

Grover Cleveland - Repealed Sherman Silver Purchase Act

William McKinley - Dingley Tariff - Signed Gold Standard Act 1900

Theodore Roosevelt - Business and Trust Reform/ Control of Corporations - 40 Suits in 7 years

Taft - Payne-Aldrich Tariff

Woodrow Wilson -TARIFFS : (Mother of All Trusts) - so he issued Underwood Tariff Act -BANKING : Federal Reserve Board & Act Reorganized the American banking system, created a network of 12 Fed. Reserve banks authorized to distribute currency. Fed. Board - responsible for making monetary policy. -TRUSTS : Clayton Anti-Trust Act

<span style="font-family: Arial,Helvetica,sans-serif;"> 1920s - Harding & Coolidge <span style="font-family: Arial,Helvetica,sans-serif;">-"Republican Prosperity" <span style="font-family: Arial,Helvetica,sans-serif;">- lassize-faire : Increasing Wealth <span style="font-family: Arial,Helvetica,sans-serif;">- Automobile, Margine Investments <span style="font-family: Arial,Helvetica,sans-serif;">COOLIDGE : vetoed McNary-Haugen Bill twice <span style="font-family: Arial,Helvetica,sans-serif;">Pro-business : appointed pro-business people to boards of ICC & FTC

<span style="font-family: Arial,Helvetica,sans-serif;"> Herbert Hoover -SLOGAN : "Chicken in Every Pot" <span style="font-family: Arial,Helvetica,sans-serif;">-GREAT DEPRESSION <span style="font-family: Arial,Helvetica,sans-serif;">-Attempts to relieve: Smoot-Hawtley Tariff & RFC (Reconstruction Finance Corporation)

<span style="font-family: Arial,Helvetica,sans-serif;"> Franklin D. Roosevelt <span style="font-family: Arial,Helvetica,sans-serif;">-Great Depression -New Deal a) RELIEF: FERA 1933, NIRA 1933, PWA 1933, Fair Labor Standards Act 1938, CCC 1933 b) RECOVERY : AAA 1933, TVA 1933, Emergency Relief Appropriations Act 1935, Farm Security Administration 1937 c) REFORM : Glass-Steagall Act 1933, FDIC 1933, Security and Exchange Act 1934, Social Security Act 1935, National Labor Relations Act 1935

Harry S. Truman - Oversaw transition of American economy from WWII to one of consumerism and Military production - Protected New Deal -- with rise in minimum wage and enlargement of Social Security -- called his FAIR DEAL - Invigorated trade with Europe through his Marshall Plan.

Dwight Eisenhower - Eisenhower fortunately resided over a pleasant time in American history Unemployment was low and inflation was about 2% or less Consumerism was popular as with the new suburban culture However, African Americans who left the South for cities like Detroit or Chicago remained relatively poor, almost the brink of poverty.

John F. Kennedy - Tried to base his 1962 election of a program for jump-starting the economy which took a depression in 1960 - "The Revenue Act of 1964" was passed three months after his death. Is said to be credited with the economy growth afterwards.

Lyndon B. Johnson -GREAT SOCIETY / WAR ON POVERTY issued the Economic Opportunity Act and established Office of Economic Opportunity. -Other Components : Medicare, Medicaid, Head Start, etc. -By continuing the Vietnam War and trying to establish the Great Society programs, Johnson greatly strained the American economy.

Nixon - Economy during Nixon's presidency continued to deteriorate. <span style="font-family: Arial,Helvetica,sans-serif; margin: 0px; padding: 0px;">- OIL EMBARGO had detrimental effect on American economy. <span style="font-family: Arial,Helvetica,sans-serif; margin: 0px; padding: 0px;">- Beginning of "stagflation" -- high unemployment and inflation

Gerald Ford - Continuation of stagflation. Didn't accomplish much during his short term.

<span style="font-family: Arial,Helvetica,sans-serif;">Jimmy Carter <span style="font-family: Arial,Helvetica,sans-serif;">-Continuation of "stagflation" <span style="font-family: Arial,Helvetica,sans-serif;">- Aimed his focus on energy policy

<span style="font-family: Arial,Helvetica,sans-serif;">**Ronald Reagan** <span style="font-family: Arial,Helvetica,sans-serif;">-Supply-side economics/ Reagonomics <span style="font-family: Arial,Helvetica,sans-serif;"> - He believed if corporate taxes were reduced, those corporations would earn greater profits. Then they would use those profits to buy new equipment and hire more employees <span style="display: block; font-family: Arial,Helvetica,sans-serif; text-align: center;">** ↓ **creation of more jobs that would reinvigorate the economy <span style="font-family: Arial,Helvetica,sans-serif;">**HOWEVER**, it had little effect because the country continued in a recession for almost two years before the economy revived.

=<span style="color: #008080; font-family: Arial,Helvetica,sans-serif; font-size: 22px; line-height: 32px; margin: 0px; padding: 5px 0px 0px;">**GOLD AND SILVER DEBATE** = 5 Goals of the POPULIST PARTY : Free silver, nationalization of railroad, progressive income tax, 1-term presidency, direct election of senators <span style="font-family: Arial,Helvetica,sans-serif;">Some wanted the money to be backed by gold, others by silver. <span style="font-family: Arial,Helvetica,sans-serif;">Many farmers wanted silver money. This led to various organizations like the Grange Movement and the Farmers' Alliance and the Populist Party. <span style="font-family: Arial,Helvetica,sans-serif;"> Sherman Silver Anti Trust Act 1893 <span style="font-family: Arial,Helvetica,sans-serif;">The Populist Party joined the Democrats and they nominated WILLIAM JENNINGS BRYAN as their candidate. <span style="font-family: Arial,Helvetica,sans-serif;">In the election of 1896, William Jennings Bryan gave the CROSS OF GOLD speech. He supported "free silver" (unlimited coinage of silver), but he lost to Republican William McKinley.

= WORKS CITED = <span style="font-family: Arial,Helvetica,sans-serif; margin: 0px; padding: 0px;">1. The American Pageant 14th Edition (AP) <span style="font-family: arial,helvetica,sans-serif; margin: 0px; padding: 0px;">2. [] <span style="background-position: 100% 50%; font-family: arial,helvetica,sans-serif; margin: 0px; padding: 0px 10px 0px 0px;">3. John J. Newman & John M. Schmalbach, UNITED STATES HISTORY : Preparing for the Advanced Placement Examination, AMSCO <span style="background-position: 100% 50%; font-family: arial,helvetica,sans-serif; margin: 0px; padding: 0px 10px 0px 0px;">4. http://www.sjsu.edu/faculty/watkins/econhist.htm <span style="background-position: 100% 50%; font-family: arial,helvetica,sans-serif; margin: 0px; padding: 0px 10px 0px 0px;">5. http://economics.about.com/od/useconomichistory/3_The_US_Economy_A_Brief_History.htm <span style="background-position: 100% 50%; font-family: arial,helvetica,sans-serif; margin: 0px; padding: 0px 10px 0px 0px;">6. http://millercenter.org/president