The U.S. Economy: A Brief History

Colonization a way to expand economic gain during a time of reduced European resources Allowed colonial Americans more freedom to pursue economic goals (agriculture, fur and timber) Led to meritocracy in America Split with England over taxes

The New Nation's Economy Almost exclusively agrarian economy - Southern states depended on tobacco and cotton - Northern states depended on timber, corn, molasses and whaling Early industrial economy evolved in the North - Cities grew larger especially seaports Automation of certain tasks - Cotton Gin - Milling Saw Growth of slave trade in the south

Movement South and Westward Settlers expand Westward Gave free land to settlers - Allowed for expansion of American exports (food) Question of slavery Brought the railroad west

Industrial Growth American Industrial Revolution in the late eighteenth century Invention of large-scale steel mills Immigrant migration Discovery(for uses) of oil Monopolies/Tycoon Era Commodities Trading

Inventions, Development and Corporations Shift from Tycoons to corporations at the beginning of the 20 th century Inventions like combustion engine,distribution of electricity, assembly line and building techniques make US an international powerhouse Free from European wars of the 19 th and 20 th century

Government Involvement Pre- Great Depression: Involvement was small almost non existent Size of the federal government was small Beginnings of income and property taxes Little to no corporate regulation Isolationism/National focus Post- Great Depression: Involvement had change completely Size of federal govt. increased massively Increase of all taxes and services Greater corporate regulation More internationally- minded focus

The Postwar Economy: Had a large boom at the end of the 40’s and the beginning of the 50’s Became the dominant financial leader of the world: Bretton Woods Experienced periods of recession and stagnation in the late 50’s early 60’s

1970’s, 80’s and 90’s Decade70’s80’s90’s Economic Growth Negative Growth Recession Increased greatly until the end of the decade when demand collapsed Weathered the recession of the 80’s and experienced tech boom, real estate bubble begins Government involvement Many regulation, taxes and price controls Deregulation (Regan) lower taxes tax breaks, lowered social services increased military spending Less corporate regulation, More environmental regulation, Less military Spending, welfare reform Problems - Inflation - Lack of resources (oil) - Overseas competition - Collapse of supply side economics - End of the Cold War - Trade imbalance - Tech bubble burst - Corporate relocation - Real Estate bubble Lasting ImpactOff the gold standard, Fed res Environmental protection - The great recession - Globalization - Free Trade agreements