2.11 The Impact of Economic Change Flashcards
How did the population of New York City change between 1870 and 1910?
Between 1870 and 1890, it doubled and between 1890 and 1910, it doubled again
Where did immigrants tend to settle?
In the growing urban Northeastern cities
What urbanisation was there in the South?
The development of the oil industry in Texas and Louisiana led to the expansion of established cities like New Orleans and started the growth of other major cities.
What was the Southern economy dependent on?
Plantation products such as tobacco, sugar, and, above all, ‘King Cotton’
How did urbanisation compare between the North and the South?
Urbanisation moved more slowly and on a smaller scale than in the industrial Northeast.
What was the Western economy like?
It was still distant and isolated and dominated by extractive industries, subject to sudden booms and busts, and heavily dependent on Eastern financial interests for investment.
What was the Alaska-Yukon Gold Rush?
A gold rush in 1896 where thousands of prospectors joined the rush to this region.
What was the significance of the Alaska-Yukon Gold Rush?
- Doubled the size of US gold reserves at a time when the debate about the gold standard was at its peak and money supply depended on gold available
- Sparked the wider economy in the West
How did international relations aid the growth of the US economy?
- Pacific war against Spain and increasing trade with China boosted the West coast ports
- Potrero Point in San Francisco became an import centre for shipbuilding and maritime trade.
What were reactions to the role of big business in the US?
- Farmers reacted strongly against hard times in the 1890s
- Industrial workers responded to low wages and harsh conditions by organising trade unions and strikes
What weaknesses in the economy were there during this time?
- The stock market and banking system were often unstable and unreliable, leading to demands for regulation and reform
- There were two major financial crises, the Panics of 1893 and 1907
What industrial unrest was there at Homestead in Pennsylvania in 1892?
13 steelworkers were killed in a pitched battle against strike breakers brought in by the Carnegie Steel Company
What was the Great Northern Strike?
- 1893
- American Railway Union
- Led by Eugene Debs
- Forced the railroad bosses to make concessions
How did the panic of 1893 lead to a 3 year depression?
- Slowed down the railroad boom
- Sudden bankruptcy of the Philadelphia and Reading Railroad
- Gold reserves had already been falling and the money supply was insufficient to finance the scale of economic activity
- Stock market collapsed and hundreds of banks failed
When were the main periods of economic surges?
1895-1900 and 1908-1913
How did the banking system cope with the expansion of industry?
It struggled to keep up
what triggered the Panic of 1907?
The collapse of the third largest trust in New York, the Knickerbocker Trust Company
What were the economic impacts of the 1907 Panic?
The New York stock exchange fell by nearly 50% and many banks, both local and national, went under
How were the 1893 and 1907 Panics different?
1907 panic was dealt with by JP Morgan, who put up millions of dollars to restore business confidence and prompted other financiers to do the same. Overcome relatively quickly compared to the 1893 Panic
What state was the American economy in when WW1 began?
It was in recession
How did WW1 impact the US economy?
Britain and its allies spent huge amounts on war supplies, stimulating rapid growth in American industry and agriculture. Throughout the long period of US neutrality, there was a sustained economic boom
How did America respond to the increased demand during WW1?
- Many firms, such as US steel, expanded production to full capacity
- Baldwin produced 5500 military locomotives and 6 million artillery shells for the allies between 1914 and 1918
- Farmers expanded production for export
- Unemployment fell - more people were working
How did trade unions respond to WW1?
Samuel Gompers and the AFL cooperated enthusiastically with employers because it was good for jobs and wages
How did American financiers respond to WW1?
JP Morgan made agreements with French bankers and with the Bank of England. Bankers and industrialists were quick to recognise the benefits of supporting the Allied war effort.
