The U.S. Economy: A Brief History conti…….

Sachin…

GOVT. INVOLVEMENT….
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Accept The  concept of laissez-faire, … the 19th century, when small business, farm, and labor movements began asking the government ..  Radical political movements of farmers and laborers in the Midwest and West. Known as Progressives, these people favoured government regulation of business practices to ensure competition and free enterprise.  Congress enacted a law regulating railroads in 1887 (the Interstate Commerce Act) preventing large firms from controlling a single industry in 1890 (the Sherman Antitrust Act).   Interstate Commerce Commission, the Food and Drug Administration, and the Federal Trade

New Deal era… President Franklin D. Roosevelt (1933-1945)
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extended federal authority in banking, agriculture, and public welfare.  minimum standards for wages and hours on the job.. catalyst for the expansion of  Labor Unions… Securities and Exchange Commission, which regulates the stock market; the Federal Deposit Insurance Corporation, which guarantees bank deposits; the Social Security system, which provides pensions to the elderly labor unions won long-term employment contracts 

The Post-war Economy: 1945-1960
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The automobile industry successfully converted back to producing cars.. New industries such as aviation and electronics grew by leaps and bounds. A housing boom.. GDP - $200,000 million in 1940 to $300,000 million in 1950 and to more than $500,000 million in 1960  Farmers, on the other hand, faced tough times.. 1947 stood at 7.9 million, began a continuing decline; by 1998, U.S. farms employed only 3.4 million people.. technological innovations such as the invention of air conditioning.. development of "Sun Belt" cities such as Houston , Atlanta, Miami, and Phoenix in the southern

Years of Change: The 1960s and 1970s
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 President John F. Kennedy (1961-1963) .. accelerate economic growth by increasing government spending and cutting taxes..  medical help for the elderly, aid for inner cities, and increased funds for education..  Lyndon Baines Johnson (1963-1969), follow the same path..  Major Military force….. The 1973-1974 oil embargo by members of the Organization of Petroleum Exporting Countries (OPEC) pushed energy prices rapidly higher and created shortages.. inflation , rising rates of unemployment.. Federal budget deficits grew, foreign competition

 President Jimmy Carter (1977-1981)
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increasing government spending,, he established voluntary wage and price guidelines to control inflation..  "deregulation" of numerous industries, including airlines, trucking, and railroads. The government relaxed controls on bank interest rates and long-distance telephone service, ..  the Federal Reserve Board, which clamped down hard on the money supply beginning in 1979.. BUT …. The nation endured a deep recession throughout 1982. Business bankruptcies rose 50 percent over the previous year.

The Economy in the 1980s
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 Ronald Reagan (1981-89).. The annual inflation rate remained under 5%.. “ theory of supply-side economics”.. The combination of tax cuts and higher military spending overwhelmed more modest reductions in spending on domestic programs.. . From $74,000 million in 1980, the federal budget deficit rose to $221,000 million in 1986. It fell back to $150,000 million in 1987..  George Bush (1989-1992),.. "corporate raiders" bought various corporations whose stock prices were depressed and then restructured them, either by selling off some of their operations or by dismantling them piece by piece…

The 1990s and Beyond
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 Bill Clinton (1993-2000)… Joined Republicans to reduce welfare benefits. Although Clinton reduced the size of the federal work force. Technological developments , Innovations in telecommunications and computer networking … Combined with low inflation and low unemployment, strong profits sent the stock market surging; .. . A North American Free Trade Agreement (NAFTA) had further increased economic ties between the United States and its largest trading partners, Canada and Mexico.. Unemployment totaled just 4.1 percent of the labor force in November 1999, the lowest rate in nearly 30 years. consumer prices, which rose just 1.6 percent in 1998 (the smallest increase except for one year since 1964), climbed only somewhat faster in 1999 (2.4 percent through October). Many challenges lay ahead, but the nation had weathered the 20th century -- and the enormous changes it brought -- in good

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