The ford motor co. was established in 1903 and Henry Ford developed the first model T automobile that sold for 850$. These vehicles were bought more and more frequently, puting more money into the economy.
The Panamar Canal
The Panamar Canal officialy opened, allowing passage from the Atlantic ocen to the Picific ocen. It cuts across the isthmus of Panama. This opens up extreme trade possibilities.
Banking Panic of 1907
IN 1907 the New York stock exchange droped almos 50%. This panic was triggered by a failed attempt to corner the market on stock of the united copper company.
The Federal Reserve
In responce to a series of financial panics (particularly one in 1907) the Rederal Reserve was created. It had three objectives. Maximum employment, stable prices, and moderate long-term interest rates
World War One
World war one has begun involving Japan, France, Russia, The U.S and others
The Prohibition act illegalized alcohol. After the act was established, taxes could not be put on alcohol. Also it effected farmers growing crops for alcoholic bevreges and restturonts who sold the bevreges.
The 19th amendment was passed py congress extendint the rights of woman. Allowing women to dicide who ran the country.
Farm prices fall at an extreme rate. The price of weat fell to half the price an the price of cotton fell by three quarters.
The Stock Market Crash
The stock market crashed and the great depression has begun. This effects all western industrialized nations
Hight of The Great Depression
Height of great depression; almost 10,000 banks fail and the unemployment rate reached 25%
FDR declares 4 day bank holiday; FDIC established
Congress passes the Banking Act, giving Fed Reserve the power to use monetary policy to stabilize the economy
Ending the Depression
Govt spending on WWII ends the depression by causing huge economic boom
Global Economic Order
World economic leaders meet in Bretton Woods,NH, to establish a global economic order and set rules on monetary policy
The invention of the microwave. This divice allows you to heat up your food.
The Korean War creates prospects for more government debt and issuance of govt debt begins
The Unimployment Assistent Act
Unemployment Assistance Act established requiring the fed govt to share 50% nof unemployment benefits costs
The economy turned sharply downward in the summer of 1957 and reached its low point in the spring of 1958. Industrial production fell 14 percent, corporate profits plummeted 25 percent and unemployment rose to 7.5 percent.
1960 Economic Growth
Following a 10-month recession from April 1960 through February 1961, the American economy enjoyed the longest continuous period of economic growth in the nation’s history.
Economic Take Off
Congress passes JFK’s $12 billion tax cut which causes an economic take-off
Medicare And Medicaid Programs
An amendment to the Social Security Act creates the Medicare and Medicaid programs
Nixon administration imposes wage and price controls to curb inflation; initially successful, inflation increased dramatically when controls removed
Drastic Increase on Oil
Arab oil embargo drastically increases the price and reduces the supply of oil
Targeting the Money Supply
Fed Reserve Chairman announces plan to target the money supply itself to break inflation
Depository Institutions Deregulation and Monetary Control Act
Congress passes the Depository Institutions Deregulation and Monetary Control Act forcing all banks to follow Federal Reserve monetary policy
Source of Liquidity
In response to plunging U.S. stock prices the Federal Reserve adopts the stance that it would serve as a “source of liquidity” to support the economic and financial systems
Financial Institutions, Reform, and Enforcement Act
Congress passes the Financial Institutions, Reform, and Enforcement Act to establish a more sound economic base on which to base the savings and loan industry
North American Free Trade Agreement
North American Free Trade Agreement implemented to remove tariff barriers between the US, Canada, and Mexico
Personal Responsibility and Work Opportunity Act
President Clinton establishes the Personal Responsibility and Work Opportunity Reconciliation Act to alter the welfare system into one that requires work in exchange for welfare assistance.
Congress partially repeals the Glass-Stegall Act to allow commercial and investment banks, securities firms, and insurance companies to consolidate their offerings and allowing banks to have interstate branches
The Subprime Mortgage crisis of 2008
Banks started to laon money to people who couldnt pay it back. This cauzed people to loose equity on their houses.
A devistating attack agenst the United States. Other then the extreme loss of human life, there was also economic loss. Banks shut down and the very New York stock exchange shut down for a period of time.
Stock Market Crash of 2002
The economicly dameging events of 9/11 the stock market finally collapsed.