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DOW Jones average drops 508 points, 22,6%.
The DJIA is a measure of the overall health of the economy. A 22.6% drop is alot of points, people aren't spending money and businesses aren't making much money. -
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Growth of the Internet
In the 1990's, the Internet and the Personal Computer began to gain popularity. People could buy things from their computer and investigate things to buy. -
Federal gasoline tax increase
The tax increased the tax by 5 cents, which doensn't seem like much, but over time, can add up to alot of money. If gas costs more money, people will be less inclined to go out and shop. -
Baseball Strike
For 8 months, baseball players went on strike, causing the first World Series since 1904 to be cancelled. Fans were fed up with the greed of players and attendance dropped 20%. Alot of money is spent by fans to get into baseball games and buying merchandise at them. Losing 20% attendance lost the MLB and the goverment a large amount of money. -
Euro Introduced
The euro made it easier for American companies to trade with countries in Europe. Rather than having 100 different currencies to try and find interest rates for and adjust prices, companies would only have to adjust their prices once. This would encourage people to trade more. -
9/11 Terrorist Attack
According to studies, the terrorist attack on the World Trade Center impacted the economy from about $35 billion to $109 billion. -
OPEC Quota cut = high oil prices
OPEC ministers agreed to cut quotas by 1.6 million barrels per day. Despite high prices, they predicted a surplus of oil. With less oil being pumped and shipped out, prices for gas increase. High gas prices discourage people from going out to shop and spend money. -
Minimum Wage Increase
Minimum wage was increase from $5.15 to $5.85, the first increase in 10 years. People working average jobs can now make more money, and spend that money to help the economy. -
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The "Great Recession"
The recession affected the GDP, real income, employment, industrial production, and wholesale-retail sales. Lingering affects, such as high unemployment, are still felt today. -
Vehicle Energy Bill Signed
President Bush signs a bill that requires vehicles sold in the U.S to have a fuel economy standard of 35mpg by 2020. Researchers have to work harder to more easliy meet this standard and car manufacturers have to either improve their cars, or remove any that don't meet the standard.
