-
The Gilded Age
This period of time helped begin the United States capitalist economy. Big corporations and businesses emerged, along with transportation and communication networks, and financial and banking industries. There were thousands of new inventions and patents.The economy was booming and prospering during this time. Stock markets and banks were growing and becoming vital to the economy. The standard of living had poverty and gave workers the inability to leave a company once they had been hired. -
The Great Depression
The Great Depression started in 1929 and it lasted until 1933. The U.S. was entering a stage of depression in the business cycle. This event had a huge impact on the economy. The depression was caused by the stock market crashing. Unemployment rates skyrocketed, people didn't have any food, and protests turned violent. The number of unemployed went from 8 million to 15 million. Also, the Gross Domestic Product, or GDP, decreased from $103.8 billion to $55.7 billion. -
World War II
The U.S. government spent a lot of money to fund the war and an economic boom occurred. The Great Depression finally ends after 4 years. This is the recovery from the depression. This event impacted the economy by helping unemployment rates finally come back down. People are needed for jobs as production rises, so when soldiers came home, they find jobs. Families started having children, because they felt the need to have a family and security after the long war. Birth rates increased suddenly. -
The 1980-1982 Recession
This recession was caused by the Iranian oil embargo, which caused U.S. oil prices to be driven up. For 6 of the 12 quarters, the GDP was negative. Unemployment rates were at 10.8%. Interest rates were raised to help fight inflation, which would help reduce business spending. -
September 11 Terrorist Attacks
The terrorist attacks caused the New York Stock Exchange to shut down for a period of time. The U.S. suffered both a tragic human loss and a huge economic loss. An estimated $5 trillion in damages alone after the 9/11 attack. This tragic event along with the fall in the housing department lead to the United States recession. After the 9/11 attacks, the GDP fell sharply, but was able to recover fully by 2002. The unemployment rates also fell, but unlike the GDP, was never able to fully recover. -
Hurricanes Katrina and Rita
Hurricane Katrina hit the Gulf Coast and hurricane Rita followed shortly after. The total economic loss was $250 billion. Hundreds of thousands of people were missing and 1,000 or more were killed. The economy was greatly affected, because oil and gasoline prices were changed for a long time. Hurricane Katrina destroyed 19% of the United States oil production. The GDP went from 3.8% to 1.3% after the hurricanes. Before the hurricane, the United States economy was prospering and growing. -
The Great Recession/Subprime Crisis
The Subprime Crisis is said to have been the worst financial crisis in the United States since the Great Depression. Financial institutions collapsed and stock markets experienced downturns. The housing market experienced foreclosures, evictions, and long term unemployment. Consumer wealth went down trillions of dollars and little economic activity lead to the recession. During this time, the unemployment rate rose from 4.7% to 10%. -
Bernard Madoff and the Ponzi Scheme
Bernard Madoff, former chairman of NASDAQ, admitted to running a Ponzi scheme in 2008. He defrauded around $50 billion, making this the biggest Ponzi Scheme in over two decades. This scam affected the economy because it greatly influenced the stock exchange. For a while, people were skepticl of putting their trust and money by making investments. The unemployment rate was at 7.3% and the GDP was at -0.3%. Atfer this Ponzi scheme, a recession followed.
