Module 3 Flashcards
In the late 1400s, why did the Europeans want to find an easier route to Asia?
To increase trade with Asia
At first, what was the main purpose of Spanish settlements in the New World?
To control the areas and extract wealth
What is the term given to the government policy of assisting businessmen in establishing colonies?
Mercantilism
The English colonies in America were based on what economic activity?
Agriculture
What was the primary standard of wealth in the English colonies in America?
Ownership of land
Did most English colonies in America see more or less economic opportunity in the colonies then they had in England?
more
What 2 actions did the British government take after the French and Indian war that angered colonists?
Forbade further settlement west of the Appalachians and imposed new taxes
What were 4 economic issues that the new United States faced under the articles of confederation?
1.A weak national government with no currency or economic plan
2. country debt
3.state fiscal crises
3. and instability in the west
To what kind of tax or levy did John Dickinson object?
Internal taxes that gave money to the crown
What impositions by the English government did Dickinson believe to be justified?
external impositions to regulate trade
The fiscal powers given to congress in the constitution were significant, but also what?
limited
Name 3 specific powers related to economic activity that were given to congress in the constitution.
- Power to borrow money
- to regulate commerce
- to coin money and regulate its value
What prohibition in the constitution helped unify the nation’s economy?
a ban on interstate commerce
What controversial institution had an impact on the economy, especially in the south?
Slavery
What were the three main elements of Alexander Hamilton’s fiscal plan?
- The national government took on the debts of the states and continental congress and government assisted the creation of a manufacturing economy
- to impose tariffs on imports and ban certain imports
- the creation of a national bank
What Federal law sparked a rebellion in western Pennsylvania in 1794?
A federal tax imposed on whiskey
What industry saw dramatic growth in the early United States?
Textile production
The growth of this industry led to greater demand for what agricultural commodity?
cotton
What invention by Eli Whitney increased production on Southern plantations?
the cotton gin
What 2 developments in water transportation led to increased trade?
The steamboat and the Erie Canal
What practice by France and Britain hurt American trade?
They interfered with trade ships headed to another country’s port
What act did Thomas Jefferson urge Congress to pass in response to this practice?
The Embargo Act
What was the effect of the embargo Act?
American ships languished in port, overseas markets for American goods dwindled and domestic production declined.
What did the Federal government do to help pay off debt after the war of 1812?
Sold western land
What was rechartered in 1816?
The Bank of the United States
What were some of the factors of the Panic of 1819?
1.The Bank of the United States was poorly run
2. it issued fewer loans
3. it demanded hard money of the State bank notes it received
4. the demand for American cotton declined
5. there was a slowdown in industrial output
6. there were many defaults on loans
How did the Supreme Court’s decision in Gibbons v. Ogden effect the U.S. economy?
It gave broad interpretation of the power of Congress to regulate interstate commerce
What was Andrew Jackson’s response to congressional renewal of the Bank of the United States in 1832?
He vetoed it
Where did Jackson order Federal funds to be deposited?
State banks
What was the name of the system begun in 1840 to hold Federal funds and pay the Federal government’s bills?
The Independant Treasury
What was the economic impact of the Civil war in the North and South?
The North grew in industrial and agricultural output and the South suffered losses in both areas
What were four acts of Congress that expanded the national economy?
- The Morrill Land Grant Act
- The Homestead Act
- The National Bank Act
- authorization of the transcontinental railroad
What was the first big business in the U.S. which grew dramatically after the Civil War?
The railroads
What were some examples of advances in technology that came about in the late nineteenth and early twentieth centuries?
Electricity, electric lights, refrigerated railroad cars, the automobile, and assembly lines
What financial practice helped to create large companies?
investment capitalism
What were 2 early steps that the Federal government took in regulating the economy?
the Interstate Commerce Act and the Sherman Anti-trust Act
What was the nickname of the paper currency printed during the Civil War?
greenbacks
What was established in 1913 as central bank for the U.S.?
The Federal Reserve System
According to Amity Shlaes, how did Franklin Roosevelt change the definition of the phrase “the forgotten man”?
He changed it from the man who is never thought of to a member of groups who Roosevelt wanted to benefit from New Deal spending programs
What did Roosevelt do in 1935 and 1936 that changed the role of the Federal government in the economy?
He began targeting constituency groups to recue federal funds. Those groups became dependent on the Federal government
What is generally credited with helping the country move out of the Great Depression?
Increased production related to WW2
After WW2, the United States economy had what kind of trend that extended into the 1960s?
prosperity, growth, and expansion
Under what president did Federal spending on social programs like Medicare and Medicade and on the Vietnam War dramatically increase?
Lyndon Johnson
What was a major economic problem during the 1970s?
Inflation
What proposal did Ronald Reagan make in 1980 that he said would bring about economic growth?
A broad and deep tax cut
What was the pattern of Federal spending during the 1980s?
spending more than they had, leading to an increase in national debt
What were 2 factors that contributed to the prosperity of the 1990s?
The dot-com boom and the North American Free Trade Agreement
What was the average annual growth in the gross domestic product of the United States for the fifty years following WW2?
3%
How many recessions did the U.S. experience between 1948 and 2001?
10
