Ch1 - Econ History Of U.S. Flashcards
What vital change in industry happened in late 19th century?
Transition to utility based power (from private electric generators).
What country has the largest economy in the world?
US. Bigger than CHN and JAP combined.
When did the US become an “industrial economy”?
By the turn of the 20th century.
What drove the amazing expansion during the ‘20’s?
Auto industry
What residential and industrial change helped the ‘20’s boom?
Electric power production. (By ‘29, 2/3 of homes were using elec. appliances)
What caused the economy to hit bottom in Mar ‘33?
Bank failures.
What was the official unemployment rate in 1933?
25%
Who was blamed for the Great Depression?
Hoover.
What was the largest cause of the Depression?
Deflation: Fed Reserve let the money supply fall by 1/3.
What reversed the Great Depression?
FDR’s “New Deal” ran deficits that pumped millions of $ and jobs into the economy.
What happens after the New Deal was succeeding?
The depression of ‘37-‘38. The Fed tightened credit in fears of inflation and Govt spending was drastically cut to address the deficit.
How much of the worlds production was the US in the 1940’s?
With 7% of the worlds population, US was half of worlds manufacturing, 80%of auto production, and 62% of oil.
How did the Govt become a major economic player?
Eisenhower continued the New Deal programs (Social Sec, unemployment, and regulatory reform).
What three major govt spending programs did Johnson institute in 1965?
Medicare, Medicaid, food stamps.
What caused the Recession of ‘73?
OPEC quadrupled petrol prices, added to double digit inflation, and annual rate of price increase of 10%.
