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Knickerbocker
Event 1: (1907)Panic erupts when New York’s Knickerbocker bank fails and with causes of 246 other U.S. banks to collapse. J.P. Morgan, a financier advocates for other banks to prevent failure by shoring up banks with their own money. -
Federal Reserve
Event 2: (1913) The Federal Reserve act is created to prevent further financial damages and panics. It would also be called The Fed and the 16th amendment is passed authorizing congress to push direct income tax on U.S. citizens. -
Henry Ford
Event 3: (1914) The assembly line made by Henry Ford is popularized through social ramifications of mass production. The Clayton antitrust act enforcing specific conduct for large corporations. -
Steel workers
Event 5: (1919) Steel workers went on strike for better working conditions and wages but unfortunately it was unsuccessful and had to go back to work with little changes. -
The Fordney McCumber Tariff
Event 6: (1922) The Fordney-McCumber Tariff raised the amount of tariffs on imports so america can expand and give farmers and manufacturers more opportunities to produce for a cheaper cost. -
Wall Street
Event 4: (1929) The October 24th Wall Street crash, also known as Black Thursday becomes the most devastating and trivializing stock market crash in U.S. history. It signals the beginning of a 12 year Great Depression that affects all western industrialized countries. -
The Great Depression
Event 7: (1932) The Great Depression deepens as 10,000 U.S. banks fail. Unemployment approaches 25% and Franklin D. Roosevelt replaces Herbert Hoover as president of the United States. -
Franklin D. Roosevelt
Event 8:(1933) Franklin D. Roosevelt stops a run on the banks and goes on a four day bank holiday. Congress passes the Emergency Banking Act which establishes the FDIC to protect depositors against bank failures and risky, suspicious businesses. -
The Great Depression
Event 13: (1934) Sweden becomes the first nation to fully recover from The Great Depression. -
GNP
Event 12: (1934) The economy turns around GNP rises by 7.7% and unemployment falls to 21.7% -
Social Security Bill
Event 9: (1935) President Franklin D. Roosevelt signs the Social Security Bill which supported in a large part by tax and wage contributions. The president issued an executive order for work programs to provide employment. Congress passes the Banking Act giving the Federal Reserve the right to use monetary policy. -
Works Progress Administration
Event 11: (1935) Congress authorizes creation of the Works Progress Administration -
GNP
Event 14: (1935) Economic Recovery continues, the GNP grows another 8.1% and unemployment falls to 20.1% -
The General Theory of Employment, Interest, and Money.
Event 10: (1936) Economist, John Maynard Keynes publishes “The General Theory of Employment, Interest, and Money.” Keynes argues that demand is the key variable instead of supply for governing economic activity. -
Recovery from Depression
Event 15: (1939) The United states begins emerging from their depression and borrow and spends $1 billion to build their armed forces