History exam review '10 - EXAM ESSAY TOPICS SPRING 2010 1...

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EXAM ESSAY TOPICS SPRING 2010 1. Economic patterns between 1890 and 2010* Over a long period of time, there has been a slow transformation from the Us’ economy relying on Agriculture to its reliance on industry . Because of War and the necessity to have to latest technology to compete with other countries, industry has prevailed. Over this long time period, the US has realized that it cannot rely solely on one industry which is why we now rely on a large variety of industries . With this shifting economy and the creation of many new products, there has been a business cycle that repeats itself over and over again. It is a cycle in which there are Booms and Busts . Boom: Following the War of 1812, the Economy was booming and life quality was increasing. There was a large demand for products and therefore many different industries were successful. This eventually led to an overproduction of supplies, and in turn less people were demanding items and agricultural prices stooped very low. BUST: Panic of 1819- - Laissez Faire government -Less demand for commercial and manufactured goods -Huge production of goods -Western Land boom (speculation and overpricing of land) -Dubious banking policies -Drop in agriculture prices -Economic Fall after the war of 1812 Solution: Monroe didn’t really have the power to do anything, hoped for a rebound. Congress created the Land Act of 1820 and the Relief Act of 1821. The Land Act reduced the number of acres that farmers had to purchase from 160 to eighty and the cost from $2.00 per acre to $1.25 per acre, in an attempt to encourage additional land sales. The government hoped that the economy would improve. This was somewhat interventionist. Over 100 years later… Boom: Roaring 20’s- WWI occurred which led to a huge production of arms, food, and other necessary war items to supply to the army. This in turn boosted the increasing industrialism in the US. After World War One there was a huge boom in the economy because of the huge demand for the war equipment, and other essential items. As the soldiers returned home, they took their jobs back leaving the other people without work, and the overproduction of goods wasn’t necessary without the high demand from the army. BUST: Crash of 1929- -Laissez Faire government -Uneven distribution of wealth(all to wealthy), -overproduction by business and agriculture, and under-consumption. -Raised unemployment -Stock market crashed on October 29 th , 1929
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-Economic Fall after WW1 Solution: FDR created the First New Deal which was a very hands-on economic policy. It created a lot of public works projects, gave financial aid to businesses and farms, there were many welfare and relief programs, and there were regulations imposed to reform the stock markets and banking systems. This was very interventionist Boom: 50’s- The US eventually bounced back after WWII Currently… Bust: We are currently in a recession partly because of the Iraq war and government borrowing which has led to less demand from the people (since they don’t have much money). Boom?
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History exam review '10 - EXAM ESSAY TOPICS SPRING 2010 1...

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