Survey of the American Economy

bold font denotes information you should know for the final exam.

700 BC, Native American cultivation of squash and corn. Crops move throughout geographic regions based upon tribal relocation, expansion and trading networks.
1492 CE With the arrival of Columbus , European diet and lifestyle is expanded in Europe .
1608 Glass Factory set up in Jamestown , first manufacturing. Tobacco cultivated in Jamestown by 1612.
1643 Ironworks begins in Massachussetts, by 1750 Parliament passes Iron Act, where raw iron must be shipped back to Great Britain .
1693 Rice cultivation begins in South Carolina
1712 The first sperm whale captured by Nantucket fishermen. Whale Oil causes radical increase in hunting.
1750 Wheat replaces tobacco as ultimate cash crop in Virginia . One third of Great Britain ’s fleet is built by colonies.
1765 Fishing Industry in New England is over 10,000 men and 665 ships.

1781 Robert Morris first superintendent of Finance, develops charter for National Bank, The charter obtains loans from Holland and France to create new currency and meet war debt repayments.

1785 Continental Congress makes dollar the official currency.
1790 Slater’s Mill, RI, spins cotton based on textile design that Slater memorized in England—who had wanted it kept secret.
1791 Alexander Hamilton charters first national bank. National Debt is 75,463,000.
1792 US Mint begins making coins out of silver and gold.
1793 Eli Whitney invents cotton gin.
1811 Charter for National Bank not renewed.
1816 Charter for 2nd National Bank with support of anti-federalists. The Tariff of 1816, the first protective tariff passed (25%).

Tariffs will protect manufacturing jobs in US, encourage industry and provide profit.

1817 NY Stock Exchange established.
1819 Bank panic #1, six year depression following inflation, western land expansion and contraction of credit.
1825 Erie Canal changes the agricultural center from the Mississippi Valley to the midwest.
1828 South protests increased tariffs, which ultimately help New England more than southern states.
1832 South Carolina refuses to collect federal tariffs. President Jackson refuses to renew charter of the 2nd national bank and transfers funds to state banks, causing banking crisis., panic, and loan calls by banks. Recession results.
1836 British call for American loans, 6 year depression results. President Jackson: Hard currency, rather than paper, will be required for purchase of western lands.
1857 Depression occurs because of panic selling..
1859 Atlantic & Pacific Tea Company founded, eventually becomes first great chain store.
1862 Legal Tender Act empowers federal government to print paper money.
1863 National bank Act prohibits state banks from printing paper money.
1864 2 cent coins are minted with phrase In God we Trust. 1955, this phrase is mandatory on all coins. 1866 first 5 cent piece made of nickel.
1868 Federal employees in labor and mechanics are provided 8 hour day by congressional act.
1869 First Black Friday. Knights of Labor formed in Philadelphia , first influential labor union (eventually advocate child labor laws). John Rockefeller creates Standard Oil Company out of several smaller oil companies.
1870 National Debt is 2,436,453,000.
1873 failure of Jay Cooke and CO. bank leads to 5 year depression. Andrew Carnegie becomes steel giant, gives away $350 million in profits.
1890 Sherman Anti-Trust Act attempts to break up monopolies. 1900 US manufactures 1/3 of the world’s goods.
1901 Carnegie Steel Company first billion dollar company. Discovery of oil in Texas replaces ranching and farming as leading state economy.
1913 Ford Motor Company uses mass production technique and assembly line. Federal Reserve System becomes (3rd) National Bank.
1914 Henry Ford pays $4 a day to workers, other auto workers receive $2.15 per day.
1928 Clarence Birdseye uses quick freeze process for common foods, takes lead in frozen food industry.
1929 Stock Market crash causes Great Depression.
1933 FDR’s election starts with the New Deal, including legislation for Federal Deposit Insurance Corporations, Civilian Conservation Coprs, Emergency Farm Mortgage Act, Home Owners’ Loan Corporation, separates commercial and investment banking, took nation off gold standard.
1938 Fair labor Standards Act creates minimum wage and 40 hour work week.
1953 General Motors first company to report billion dollar annual profits.
1956 Soil bank established to pay farmers to not grow crops.
1965 LBJ war on poverty increases social programs (most since new deal), uses budget surplus to initiate programs.
1968 Car manufacturing must comply with government safety standards.
1973 Organization of Petroleum Exporting Countries prices soar with Arab oil embargo. Americans wait in long lines for gasoline.
1977 Trade deficit exceeds $29 billion.
During 80-90’s, annual deficits of $100 billion per year.
1980 US produces 20% of automobiles in world. In 1960, it was half.

1981 Reagan revises tax codes, cutting corporate and personal taxes. Reagan advocates Supply-Side economics (smaller government spending during ailing economy) first time since New Deal Keynesian economics not predominant (government spending fuels economy).

1985 US is a debtor nation, with $220 billion trade deficit.. National Debt is 1,945,900,000,000.
1987 Stock Market crashes, infusion from Federal Reserve lessen impact.
1998 First national government budget surplus since 1960.
2000 Microsoft found to have violated anti-trust laws.
2001 10 year, 1.35 trillion in tax break passed by congress.
2002 Enron, energy company largest bankruptcy case in history.
2002 National Debt is 6,228,200,000,000