The Economy

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    Agrarian Econmy

    At the time the constitution was written, approximately 90% of Americans were agriculturally employed. The U.S. economy, thus, was heavily dependent on farming. This lasted until the industrial revolution in the north, though stayed true as a general rule for the south.
  • National Bank

    Treasury Secretary Alexander Hamilton (under the presidency of George Washington) created the national bank in order to stimulate the economy, protect deposits and government funds, circulate a uniform currency, and grant loans.
  • Panic of 1797

    Caused by speculation and the failure of the British economy. While the south remained unaffected, the northern economy (heavily reliant on trade and inextricably bound to foreign markets) stagnated.
  • Embargo Act of 1807

    The embargo act, attempted under Jefferson's reign, devastated the trade reliant US economy by prohibiting economic interaction with Britain.
  • Panic of 1819

    The panic of 1819 was witness to multiple foreclosures, agricultural and industrial economic collapse, and high rates of unemployment/bank failures. This panic lent support to the crusade against the national bank.
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    Industrial Revolution

    Where the south had been devoted to agriculture, the north was experiencing the benefits of the industrial revolution. Products could be mass produced, sold more cheaply, and made more easily. The northern and southern economies prospered in their separate ways until...
  • Panic of 1825

    Land speculation caused the stock market to crash
  • Tariff of Abominations

    Different divisions of the United States were specialized to their own regional capabilities, giving rise to a plantation economy in the south, while an industrialized economy grew in the north. Northern interests took priority over Southern when the so called “Tariff of Abominations” was approved in an attempt to protect American industry and reduce outside trade.The south, previously flourishing from its monopoly over production of such things as cotton and tobacco, was hard hit by the tariff
  • National Bank fails

    Andrew Jackson, president from 1829-1837, fought against the bank’s power and influence, deeming it unconstitutional. Previous economic panics, particular the panic of 1819, rallied public support behind Jackson’s cause.
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    Recession

    Economy suffered due to bank failures and depreciation in value of paper currency.
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    Civil War-Reconstruction

    The civil war, and subsequent reconstruction primarily benefited the northern economy, and the south was destroyed. Industry was strengthened, and the various sanctions and hardships southern producers faced prohibited any real success from gracing the south.
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    Gilded Age Economic Control and Corruption

    The north was witness to the rise of trusts and monopolies over business and production, which crowded out other manufacturers, allowing prices to be driven up. The economy was virtually run by political bosses and corporations, meaning consumers and opposingly affiliated party members suffered.
  • Panic of 1893

    Railroad industry fall ins, bank failures, and inflation due to lack of a gold standard caused the 1893 panic, which later became a motivating point for the Populist party.
  • Panic of 1907

    A major collapse in the capabilities of trusts resulted in the 1907 panic. Its occurrence necessitated the creation of the Federal Reserve.
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    Great Depression

    Stock markets all around the world crashed, resulting in high rates of unemploment, inflation, suicide, homelessness, and starvation. The main causes were overproduction, speculation, buying on credit, and tariffs.
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    OPEC Recession

    The inflation of oil prices by OPEC caused this two year recession.
  • 1979 energy crisis

    The Iranian Revolution raised oil prices and created the need/desire to find energy alternatives in order to lessen dependence.
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    Great Recession

    The housing crisis and subsequent failure of the banking and automotive industries caused the 2009 recession. Its effects are ongoing.