Economics + Inventions Flashcards
Colonial Mercantilism
mostly cotton
theory thaT THERES A FIXED AMOUNT OF GOLD
1773 Boston Tea Party
dressed as indians destroyed government property
1776 Adam Smith “The Wealth of Nations”
classical economics
year declaration was written
mercantilism is wrong its based on the people and their work ethics and creativity
Revolution: “Not worth a continental”
like an IOU until after the revolution
we will replace that with actual gold
Early 19th: household production
market economics
v
Alexander Hamilton vs Thomas Jefferson (Cabinet Battle#1)
1st bank of US (1791-1811)
congress gave him 20 years
established local banks
the second of three influential reports on fiscal and economic policy delivered to Congress by Secretary of the Treasury Alexander Hamilton. The Report, submitted on December 14, 1790, called for the establishment of a central bank, its primary purpose to expand the flow of legal tender by monetizing the national debt through the issuance of federal bank notes. Modeled on the Bank of England, this privately held, but publicly funded institution would also serve to process revenue fees and perform fiscal duties for the federal government. Secretary Hamilton regarded the bank as indispensable to producing a stable and flexible financial system.
Embargo of 1807
The Embargo Act of 1807 was a general Embargo that made illegal any and all exports from the United States. It was sponsored by President Thomas Jefferson and enacted by Congress. The goal was to force Britain and France to respect American rights during the Napoleonic Wars.They were engaged in a major war; the U.S. wanted to remain neutral and trade with both sides, but neither side wanted the other to have the American supplies. The American goal was to use economic coercion to avoid war, and punish Britain. The policy was highly unpopular with shipping interests, and historians have judged it a failure. It was repealed as Jefferson left office in 1809.
2nd Bank of US (1816-36)
located in Philadelphia, Pennsylvania, was the second federally authorized Hamiltonian National Bank[3] in the United States during its 20-year charter from February 1816[4] to January 1836.[5] The bank’s formal name, according to section 9 of its charter as passed by Congress, was “The President, Directors, and Company, of the Bank of the United States.”[6]
Jackson veto renewal
President Andrew Jackson vetoed a bill that would have renewed the corporate charter for the Second Bank of the United States. It was one of the most definitive acts of his presidency. caused panic of ‘73
“Panics” : 1819, ‘37, ‘57, ‘73, 1893, 1907
government did nothing.
almost every 20 years
Pre-Civil War
leaning to up to it north was basically the mother
south made cotton north made it to something (shirts) and then ship them around the world
so south thought that north would always need it so they would never invade
So. –> No. :cotton
60%-75% of exports
No. –> So. :Manufactures
h
No. –>World :
j
Civil War: Higher Taxes: North
Print money: Both
south hated central authority so they printed money so they had too much money
