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New factories, national advertising, and new forms of credit allow millions of Americans to buy cars, radios, and household goods. Businesses begin to focus on selling lifestyle and convenience rather than just basic products. This shift helps expand corporate power and creates a new culture centered on mass consumption. This event matters because it marks the beginning of the consumer driven economy that defines modern American capitalism. (Krippner 2005)
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Speculation causes the stock market to collapse, leading to widespread bank failures and massive job loss. Businesses shut down and families lose their savings as the financial system falls apart. The crisis exposes deep weaknesses in unregulated markets and increases pressure for federal action. This event matters because it leads directly to major government reforms of the American economic system. (Fishback. 2005)
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President Franklin Roosevelt introduces banking regulations, federal jobs programs, and protections for workers. These reforms reshape the relationship between government, business, and labor and help stabilize local economies. New Deal spending increases household income and supports struggling communities during the crisis. This event matters because it transforms the structure and expectations of American capitalism. (Fishback 2017)
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World leaders create a new global financial system centered on the United States dollar. Institutions like the International Monetary Fund and the World Bank are established to guide international recovery and stabilize currencies. This agreement puts the United States at the center of global economic decision making. This event matters because it defines American influence in international capitalism for decades. (Boughton 2001)
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After World War II the United States experiences massive economic growth fueled by industrial expansion, military spending, and new housing development. Rising wages and the GI Bill help build a growing middle class. Families move to suburbs, purchase new consumer goods, and benefit from stable long term employment. This event matters because it shapes the social and economic landscape of modern American life. (Fishback 2017)
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President Richard Nixon stops allowing other countries to exchange dollars for gold, ending the old monetary system. This move causes global currencies to float freely and leads to rapid growth in financial markets. Investors begin to play a larger role in shaping the economy as the dollar becomes more flexible. This event matters because it begins a new era of financial expansion and global market volatility. (Krippner 2005)
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An oil embargo causes fuel shortages and sharp price increases across the United States. At the same time unemployment rises and the economy slows, creating the rare combination called stagflation. Policymakers struggle to control inflation without hurting workers or growth. This event matters because it undermines earlier economic assumptions and leads to more market-oriented policies. (Wellum 2020) -
President Ronald Reagan introduces lower taxes, fewer regulations, and weaker labor protections. These policies encourage corporate investment and support the expansion of financial markets. At the same time wage growth slows and inequality begins to rise. This event matters because it pushes the United States toward free market ideas that shape policy for the next several decades. (Krippner 2005) -
Congress removes rules that had separated commercial banks from investment banks since the Great Depression. Large financial firms grow quickly as they combine banking, insurance, and investment services under one roof. This creates new profit opportunities but also new risks. This event matters because it sets the stage for financial instability in the early twenty first century. (Boughton 2017) -
Housing prices fall and mortgage backed securities collapse, causing major losses for banks. Credit markets freeze and unemployment rises as the economy enters the worst downturn since the 1930s. The federal government steps in with large emergency programs to stabilize the system. This event matters because it reveals the dangers of an economy dependent on complex financial products. (Boughton 2017)