Business, Industry & Economics Early Founding of the Nation Mercantilism under English colonial rule 1791: First bank of the United States loose vs strict constructionism; use of gov’t power to stimulate economy; political parties form around economic issues of industry/cities vs agriculture (Hamilton vs Jefferson) : Eli Whitney creates the cotton gin 1798 Eli Whitney devises idea of interchangeable parts 1807: Embargo promotes American manufacturing 1816: Introduction of the American System Henry Clay; the first protective tariff; internal improvements (esp. transportation); reauthorize national bank; tries to please east & west 1816: founding of the Second National Bank 1819: McCulloch v Maryland affirms federal power to create a national bank Panic of : Erie Canal opened
Business, Industry & Economics Jacksonian Era 1828: Tariff of Abominations nullification; 1832: “Bank War” controversy over re- establishment of the Bank of the United States 1833: Compromise Tariff of : Financial Panic (crash)
Business, Industry & Economics Civil War and post-war Industry Civil War: Lincoln’s pro-business platform enacted by Congress; stimulates BIG business – concentrated in the north 1873: Economic crash 1877: Munn v. Illinois; allowed states to regulate certain businesses within their borders (incl. railroads); begins growth of federal government regulation 1886: Wabash v. Illinois; severely limited the rights of states to control interstate commerce; led to the creation of the Interstate Commerce Commission
Business, Industry & Economics Civil War and post-war Industry Railroads dominate U.S. economy 1887: Interstate Commerce Act; federal law designed to regulate the railroad industry, particularly its monopolistic practices 1890: Sherman Anti-Trust Act; prohibits certain business activities that federal government deems to be anticompetitive; ends up busting unions first and NOT regulating business much (too much political corruption) 1901 formation of U.S. Steel
Business, Industry & Economics Progressive Era 1902: Roosevelt’s Intervention in the anthracite coal strike; beginning of progressive intervention 1903: Elkins Act (made discriminatory railroad practices illegal) 1906: Hepburn Act; Pure Food & Drug Act; Meat Inspection Act
Business, Industry & Economics Progressive Era widespread use of mass production 1913: Federal Reserve Act begins to take serious government control of the money supply & Underwood-Simmons tariff lowers protective tariffs 1914: Clayton Anti-trust Act & Federal Trade Commission Widespread use of electrification and oil fuel in manufacturing
Business, Industry & Economics Crash and the New Deal October 29, 1929 buying on margin leads to stock market crash 1930: Hawley-Smoot tariff (restores protective tariff) 1933: 100 Days Congress ushers in era of federal government influence in economy 1939: Fair Labor Standards Act : World War II puts U.S. economy at full production
Labor Movement (late 1820s-early 1830s: first labor unions formed in cities) (1842: Massachusetts Supreme Court says “peaceful” labor unions can negotiate contracts w/employers) (1866: National Labor Union formed; all workers sought) 1869: Knights of Labor Organized; secret, went public in 1881; social as well as employment goals; 8-hour workday for federal employees 1886: American Federation of Labor organized (skilled labor) & Haymarket Riot – anarchists ruin things for K of L; 1892: Homestead Strike response to cut wages; lockout, private guards, strike breakers; broke the union 1894: Pullman Strike response to cut wages; Pres. Cleveland uses army to keep trains running; court injunctions to end strikes
Labor Movement 1902: anthracite coal strike 1914: Clayton Antitrust Act says unions have a legal right to organize (they are not a “labor trust”) 1935: Wagner Act & Social Security 1936: General Motors sit-down strike 1938: Fair Labor Standards Act 1947: Taft-Hartley Act rolls back some of the New Deal union protections and begins to limit unions 1950s-1960s: labor’s heyday (peak membership and good wages)