Economic events that occurred during 1900-1910 that changed or shaped the American economy
By yudith08105
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Congress passes the Gold Standard Act, which pegs the dollar exclusively to gold and ends the debate over the use of silver. This stabilizes the currency's value and gives greater confidence to domestic and foreign investors, and the United States consolidates its position as a modern industrial and monetary economy.
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J.P Morgan merges several steel companies to form U.S. Steel, the world's first billion-dollar company. President William McKinley dies, and Theodore Roosevelt takes office, ushering in an era of reforms known as Progressivism. Roosevelt adopts a more interventionist stance on the economy, opposing monopolies.
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140,000 miners go on strike demanding better wages and conditions. President Roosevelt intervenes directly to mediate, marking an unprecedented shift in the federal stance toward labor disputes. The idea that the government should act as an arbiter in key economic disputes is promoted.
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The department of commerce and labor, a new agency to regulate key industries and collect economic and labor statistics, is established, An era of increased government oversight of business and labor practices begins. More than 800,000 immigrants arrive in the U.S., expanding the labor force.
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The supreme court, under the Sherman Antitrust Act, orders the breakup of Northern Securities, a powerful railroad monopoly. This marks the first major successful use of government funds against large corporate trusts. It reinforces Roosevelt's image as a "trust buster"
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The United States economy continued to expand thanks to the industrial boom. Sectors such as steel, oil, railroads, and manufacturing experienced accelerated growth. The use of electricity in industry began to transform production processes.
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Important laws were passed, such as the Pure Food and Drug Act and the Meat Inspection Act, spearheaded by President Theodore Roosevelt. These regulations marked a shift in the relationship between government and the economy, requiring higher standards from the food and pharmaceutical industries.
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The financial panic of 1907 occurred, a banking crisis that led to bankruptcies, a stock market crash, and a recession. JP Morgan led a private intervention to stabilize the system. This crisis highlighted the need for a central regulatory body, which would later lead to the creation of the Federal Reserve.
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General Motors was founded, reflecting the boom in the automotive industry and the growth of large corporations. The economy began to recover from the previous financial panic, although some caution remained in the financial sector.
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The economy continued to stabilize. President William Howard Taft, Roosevelt's successor, maintained some progressive policies, albeit with less momentum. Oversight of large corporations was strengthened, but with a more conservative approach.
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Several reforms initiated years earlier were consolidated, urbanization and industrial growth continued, driven by immigration and cheap labor, and a period of transition toward a more modern and regulated economy began.