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The great depression would be an event that would target the entirety of the United States. The Great Depression was a widespread economic downturn that was caused by a variety of reasons. Such as the Dust Bowl and a poor return on crops would cause agriculture to crash, the stock market would plummet, and banks would go under due to masses of people going to take their cash because of financial fears. The Great Depression would lead to Federal involvement in the economy as well(Levy 313-325) -
FDR would be inaugurated on the promise of a New Deal for America, in which the federal Government would intervene and stimulate the economy. Hoover would leave FDR with a failing economy that FDR would counter with injecting funding into various projects such as the TVA, WPA, and PWA. These various institutions would use government funds to create jobs and stimulate the economy. Other features of the New Deal would be the Bank holiday to help reinforce Americans' trust. (Levy 330-336) -
World War II would be a crucial moment in American history for aiding the economy as it emerged from the Great Depression. This would be the kick start that would help boost the American economy, as the US would be able to use its industrial strength to provide wartime goods for the world. Not only would this employ thousands of Americans during the war, but it would also aid in the post-war economy of excess and consumerism (Levy 367-371) -
This act would lead to the American housing economy that we are familiar with today. Furthermore, this act would introduce the culture of Levittowns and the more suburban infrastructure that would lead to the housing boom. This would lead to a great percentage of Americans being homeowners, typically outside of major cities, allowing for a commuting style of work. This would create economic growth in cities and also in areas near cities. Signed by Harry Truman after revisions. (Levy 406-410) -
Eisenhower's farewell address would show his failure to handle the growing war profiteering and the expanding power of lobbyists. This would be a turning point to show the growth of the "military industrial complex" that would win the Cold War but would also define the future of American Capitalism. The military industrial complex that Eisenhower spoke of would have great power and would show the strength of corporations and the power of money in the American government. Levy (430-434) -
The Revenue Act of 1964 was brought into fruition by JFK but would be ushered in by LBJ after JFK's assassination. This would be a great change for the history of capitalism as it was a tax cut not because of a recession but instead it was a cut in revenue to prolong a period of economic growth. This would lead to a great economic boom that would reelect LBJ and would set precedent for President Reagan and his Reaganomics with widespread tax cutting (Levy 440-443). -
Jimmy Carter would inherit a dying economy after Nixon had left office, setting Carter up for failure. Carter would attempt to remedy stagflation through various economic policies, such as market deregulation in the airline industry and the national gas sector. These events would lead to a new era of American Capitalism under Ronald Reagan and an extreme shift in economic policy. If it were not for the failure of Carter on stagflation, Reaganomics would not be as prevalent (Levy 472-280) -
With Reagan's election, he would bring his ideas of the "magic of the market" and a loose economic policy when it came to inflation in general. Lucky for Reagan, Federal reserve chair Volcker, who would be appointed by Carter, would tackle the issue of inflation, whilst Reagan pushed his free market ideology. The success of Volcker in tackling inflation would lead to Reagan and his policies looking better, setting up Reaganomics to look successful, bringing a new era of loose control Levy480 493