Colonial Era 1607-1776
The formation of the British colonies in North America from the early 17th century to to the time of the War of Independence was for the purpose of expanding the British economy. The wealth of the New World was comprised of a medley of timber, agriculture, fishing, and a new consumer market for Britain. The principles of Mercantilism had established a colonial market that was based on the bringing wealth to Britain proper. This in turn led to the majority of industries centered around the harvesting and exporting of raw resources for the production of manufactured goods in Britain. The initial colonies were private enterprises created to bring profits to British investors. Many of the immigrants at this time came to create a better life for themselves and their families at the encouragement of the investors. To stimulate trade in the colonies, Britain passed laws prohibiting the minting of coin in the Americas. With this lack of capital, the colonies were forced to trade solely with Britain. With a population of investors, businessmen, and private workers, the North American colonies became a culture dedicated to work and profit. Almost immediately after the British begin to settle in Virginia, a demand for cheap labor arose. With no shortage of work, the able bodied men already residing in the colonies were able to make higher profits through their own enterprises. This lack of cheap labor, caused plantation and large farm owners to import labor through the form of indentured servants from Ireland and soon, slaves sold from West Africa. The number of slaves and indentured servants in the colonies as opposed to Britain in the late colonial era reflect the greater economic opportunities investors found in the New World. This demand for cheap labor in the Americas, raw goods in Britain, and manufactured goods in Africa and the Americas led to the development of the Triangular Trade. The taxes levied on the colonial population were low in comparison to those of British civilians, though the colonists were not adequately represented in parliament. The costly wars fought in the colonies led parliament to issue a series of taxes and levies on colonial markets to defray the military expenses. After initial economic struggles due to the boycotting of the taxed goods, tensions between the colonies and the motherland until they reached their culmination in the War of Independence.
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1764 Currency Act- forbids the colonies from printing money
1765 Stamp Act- requires colonists to buy a government stamp for all paper goods
1767 Townshend Acts- places duties on paper, paint, lead, glass, and tea
Mecantalism- economic theory promoting government intervention in the economy for the purpose of strengthening national power
1765 Stamp Act- requires colonists to buy a government stamp for all paper goods
1767 Townshend Acts- places duties on paper, paint, lead, glass, and tea
Mecantalism- economic theory promoting government intervention in the economy for the purpose of strengthening national power
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The Early Republic 1783-1836
The early Republic was wrought with the financial troubles inherited from the Revolutionary war. While daily economic life had continued relatively unaltered for the average citizen, blockades by the British Empire had virtually ended the imports of manufactured goods. This led the young nation to develop its own manufacturing centers in New England. The new young economy suffered initially following the War of Independence due to the loss of trade with Britain, but made up for this through trade with other nations. To pay for the war, the government had printed large amounts of paper money to pay for expenses, which led to ruining inflation. This shaky start to the new nation left many well-off families in poverty's grasp. Alexander Hamilton is known as the "father of national debt" because he saw that the more parties the union owed money to, the more people there would be who had a personal stake in the success of the union. He also proposed one national bank that would double as a safe box for the people's money and as an overflow stash from which the government could take loans. Jefferson opposed such action saying that the constitution left no room for the government to be a financial octopus. The Bank of the United States was chartered for twenty years in 1791. Jefferson's purchase of the Louisiana Territory eventually opened future economic opportunities in the West. The Embargo Act of 1807 prohibited the export of American goods to any nation in order to try to preserve neutrality, but was very unpopular with American people. It was repealed two years late with the Non-Intercourse Act. The early 19th century also saw the rise of the boom and bust periods that began as times of economic prosperity followed by panics that strapped people of their investments. When the charted for the national bank ended, Henry Clay sought to have congress where it would then be signed into law by the Jackson. While it passed through congress, it was vetoed by Jackson, who did not want to turn back on his everyday man roots. This period also saw the rise of the industrialized economy. The mills of Britain inspired and touched off the mills of New England. The Erie Canal drastically lowered the price of shipping throughout New York, and the train, though in its infancy, would soon shape the nation.
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National debt- lauded by Hamilton due to its ability to unite the investors in question
Tariffs- heavily used in this time as political tools but proved to be greatly unpopular and damaging to the economy
National Bank- Established in 1791 and was the only bank that could produce coin and sought to unify the currency. It ended with Jackson's failure to renew it's charter in 1836.
Tariffs- heavily used in this time as political tools but proved to be greatly unpopular and damaging to the economy
National Bank- Established in 1791 and was the only bank that could produce coin and sought to unify the currency. It ended with Jackson's failure to renew it's charter in 1836.
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Slavery and Secession 1838-1865
Since the early colonial era, slavery had played a major role on the agriculture scene. The demand for cheap and plentiful goods had led to the widespread use of this practice in farming states. Slavery was in a decline in the latter half of the 18th century, but the invention of the cotton gin led to and unprecedented demand for cotton, thereby leading to an increase in slave value and further cementing the culture of slavery. The first wave of industrialization had also created a demand for cheap labor which was found in the immigrant, who would work long hours for little pay. The Southern farms and plantations continued the practice of slavery, though it was illegal in the Northern States. The dilemma of what to do with the slavery issue continued from the dawn of the country through the Civil War. The rapid industrialization of the North gave them a distinct advantage in the war because of their ability to quickly produce weapons, quickly move troops, and more effectively feed their people. The South's focus on agriculture left them tragically inept for the approaching struggle. At the same time, a massive emigration of Americans occurred as many thousands moved West. Gold discovered in California in 1848 created new economic opportunities on the West coast. Railroads and steamboats made travel far cheaper and much faster. The factories of the North hummed creating cheap clothing produced from the cheap cotton of the South. Before regulations, industry could be ruthless.
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Slavery-the main issue leading up to the Civil War. Controls the economy of the South. Cotton is King
California Gold Rush-leads to more migration out west and brings more capital back east
Industry-The cost of living is decreasing and travel is more accessible
California Gold Rush-leads to more migration out west and brings more capital back east
Industry-The cost of living is decreasing and travel is more accessible
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The Gilded Age 1865-1901
Following the civil war, industry continued to feed itself and create more industry. The small factories became large ones and purchased other factories. Trusts were formed as were monopolies to control prices for a certain product or service. Tycoons made fortunes not seen since the days of Rome and the unregulated workplace allowed for a poor pay, terrible conditions, and a recurring cycle of urban poverty. More Americans than ever were moving to industrial centers for work and immigrants spewed forth from Europe. The massive population growth led to unemployment, and the forced acceptance of low wages. Unrestricted capitalism led to the creation of massive amounts of wealth, but that unfortunate remained in a few hands and was wrought at the expense of thousands. Transportation monopolies now controlled the prices of fares unconditionally. The quality of goods did not have to be inspected and was often very low. Regardless of the seemingly polarizing effects of big business, a large middle class did develop at this time. With the end of the Western wilderness, eyes looked across the pacific now. The Spanish American war landed America a few prized possessions that fueled the industrial machine with exotic goods such as rubber and cheap sugar. Corrupt politicians often constructed deals with wealthy businessmen to vote for or against certain laws in the favor of the business. Now that government and industry had stronger (albeit illegitimate) relationship, the pendulum of economic values began to swing between economic ideals through elections.
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Strikes-begin to occur in cities around the country the protest working conditions. These often met violent strikebreaker resistance
Social Darwinism-Inspired by scientific Darwinism, this popular theory stated that only the financial strongest survive and that is that
John D. Rockefeller, Cornelius Vanderbilt, Andrew Carnegie, etc.
Telephone, Typewriter, "Automobile", light bulb-all invented during this time
Haymarket Riot, Pullman Strike, Great Railroad Strike, Labor Unions etc.
William Jennings Bryan, Free Silver-a movement arises that seeks to create inflation through the minting of silver so that crops will be "worth more" and current debts will be easier to pay off.
Social Darwinism-Inspired by scientific Darwinism, this popular theory stated that only the financial strongest survive and that is that
John D. Rockefeller, Cornelius Vanderbilt, Andrew Carnegie, etc.
Telephone, Typewriter, "Automobile", light bulb-all invented during this time
Haymarket Riot, Pullman Strike, Great Railroad Strike, Labor Unions etc.
William Jennings Bryan, Free Silver-a movement arises that seeks to create inflation through the minting of silver so that crops will be "worth more" and current debts will be easier to pay off.
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The Progressive Era and War 1902-1919
After several decades of government corruption, a new movement sought to make better the industrialized society. People believed that war, poverty, and other social ills could actually end in their lifetime. The government under Theodore Roosevelt sought to take down "bad" trusts while protecting "good" ones. The urban poor received assistance from many organizations such as the Salvation Army and the YMCA. Upton Sinclair's The Jungle exposed the revolting meat-packing industry and set in motion the creation of the Pure Food and Drug Act in 1906. The economy suffered slightly in the panic of 1907, but wages continued to slowly rise with the popularity of the progressive movement. The Elkins Act of 1903 heavily fined those involved in railroad rebates. Taft following Roosevelt sought to destroy all trusts, contrary to his predecessor's distinction between good and bad. Wilson was the idealist Progressive who attacked banks, trusts, and tariffs. The sole trading with Great Britain during the Great War eventually led to the United States joining the war on its side. The War Industries Board set the precedent of government intervention in the economy during wars and times of struggle. Factories were converted to produce military goods. Workers were threatened with the draft should they strike, yet through it continued the labor movement. The IWW continued to protest working conditions, and often came in conflict with those who accused them of communist sympathies. The lack of crops in Europe led to a boom for farmers who made killings in agriculture. This era was one of government intervention in the economy that strove to take down big business and create better conditions for workers.
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Elkins Act, Meat Inspection Act, Pure Food and Drug Act, Payne-Aldrich Bill, Underwood Tariff, Federal Reserve Act, Federal Trade Commission, CLayton Anti-Trust Act, Workingmen's Compensation Act, Adamson Act, War Industries Board,
IWW (Industrial Workers of the World), YMCA, Women's Christian Temperance Union, Knights of Labor
Woodrow Wilson, Theodore Roosevelt, William H. Taft
IWW (Industrial Workers of the World), YMCA, Women's Christian Temperance Union, Knights of Labor
Woodrow Wilson, Theodore Roosevelt, William H. Taft
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Boom, Bust, and Bombs 1920-1945
The progressive policies of the first twenty years of the century ended promptly in the early 1920's. President Harding stressed a return to normalcy after the war and sought to reduce the regulations on industry to stimulate the economy. The economy also continued to strengthen based on the increased use of credit. While this increased production, the economy was established on a shaky foundation. Debt began to be a problem in households which continues to this day. The effects of mass production and the assembly line finally reached home with the development of the cheap automobile, electric stove, phonograph, and refrigerator, all of which could be purchased on credit. Taxes were lowered along with industrial regulation and the government took a major step out of the economy. While it appeared to work, public trust in capitalism was shaken with the stock market crash of 1929 and the bank failures soon after. Conservative financial practices quickly turned to liberal as FDR took the reins. Massive government spending did little to relieve the public of the worst financial downturn in US history. With high unemployment and no trust in the banks, the economy remained depressed until WWII. The war led to a massive shift in the economy. The Federal government rationed most basic goods, set prices on others, and directed industry in the path of war. Unemployment quickly dropped to zero as the call for all hands on deck went out. This time period saw three major changes, huge prosperity, terrible dearth, and total control.
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Warren G. Harding, Teapot Dome Scandal, Normalcy, Credit, Model T, Stock Market Crash, The New Deal, FDR, AAA, CCC, CWA, NLRB, WPA, Rationing,
Due to shortcomings with the program, interviews could not be uploaded
Postwar Prosperity 1946-1967
Following WWII, Americans experienced a period of economic prosperity never seen before. The United States was by far the world leader in standard of living and GDP. Consumerism flowered at this time and over consumption began to be seen as a status symbol. Cheap fuel powered the economy and the car set Americans on the move. Suburbs and new towns reflected the consumerist society as nice building-lined streets were replaced by supermarkets and malls surrounded by parking lots. Cheap goods were manufactured designed to be replaced every few years to continue economic gain. The hippy subculture rebelled against the "system" of the American economy and return the stone age lifestyle at the expense and disgust of good tax-paying citizens. The Great Society led by Lyndon B. Johnson set forth in the mid 1960's failed and ultimately led to the downturn of the 1970's.
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Dwight D. Eisenhower, John F. Kennedy, Great Society, Lyndon B. Johnson, US Freeways
Inflation, Excess, and that Strange Time Called the Nineties 1968-2001
As the Vietnam and the Great Society continued to heat up, the economy began to cool down. Rapid inflation and a stagnant economy led to the term stagflation. The oil crisis of 1973 created by OPEC forever ended the era of plentiful and ludicrously cheap gasoline. The cost of living rose faster than wages in this decade, and inept presidents and congress did not do anything about it. Like a salt-less cracker, the 1970s has been seen as a period of few financial joys, but no tragic downfalls. As the pendulum swung back to the right by 1980, Ronald Reagan took the lead and sought to revitalize the economy through his trickle-down economic method that would come to be known as Reaganomics. After an initial recession, the 1980s saw another economic boom period that carried on into the 1990s, coinciding with the rise in US military power. This saw the height of the age of disposable goods. Plastic was the way to go causing American trash output to skyrocket. The modern green movement would strike a few years later, creating a different market for buyers.
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Stagflation, Oil Crisis of 1973, Jimmy Carter, Ronald Reagan, Trickle-Down Economics, Technology Industry
A New Age 2001-
You all have lived through this. Remember what you can.
-Note: I was not required to do this part anyways.