The Changing Economy: 1865-1939
The end of the Civil War brought a whole new era of economy, political control, and Presidential intervention. The economy emerged from its agriculturally based economy into a flourishing big business dominated world and eventually in 1929 came crashing down. I agree only partially with the quote " The Civil War saw the beginning of an 80-year decline of real individual economic opportunity; nonetheless, the vast majority of Americans continued to profess their belief in individualism as evidenced by the Presidents they elected. Thus, between 1865 and 1939, the majority of Americans accepted big business dominance and rejected all forms of government interference and regulation contrary to individualism."
It is true that the Civil war saw the beginning of a decline of individual economic opportunity. During an era known as "The Gilded Age" lasting from the end of the war until 1900, large corporations dominated the U. S. economy. The population went from being composed of predominantly farmers and small business owners to large business owners and shareholders. Technology began to revolutionize corporations, such as the construction of national railroads. Big business also led to monopolies, where one company would have full control over a specific area leaving others struggling. To resist big business labor unions, such as the American Federation of Labor, formed although they were usually no competition for big corporations. Between the end of the Civil war and 1900 manufacturing increased by four times leaving many farmers and small business owners moving to the city. After the stock market crash of 1929 everyone seemed to suffer an economic decline and it was no longer limi...
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... wealthy and did not want the President to have a large hand in social and economic control. During 1885 and 1933 many politics were corrupt from the business leaders developing an alliance with politics causing Presidential control to be small. If the country had rejected all forms of the government regulation, they may have never gotten out of the Depression. FDR had a large governmental control over the country, regulating much of the economy. This is why FDR as opposed to Herbert Hoover got the country back to solid economic grounds.
From the Civil War to the end of the Great Depression the United States economy went through many levels of economic, political, and social success and failure. Without the government stepping in to make regulations the country would have never been able to climb out of the plague of the Depression under Individualist means.
After the Civil War, business and corporations have expanded significantly throughout the United States. During this time period, known as the Gilded Age, many aspects of the United States were influenced by these large corporations. The Gilded Age was given that name after Mark Twain referenced it in one of his works. In the post Civil War period, big businesses governed by corrupt acts and held power of both the political system and the economy.
The growth of government from 1877 through 1920 was the worst example of “America the great exception” because every time the government took one step forward toward making America better, it would inevitably take 5 steps backward.
In the late nineteenth century known as the Gilded Age (or the Reconstruction period) and the early twentieth century known as the Progressive era, the nation went through great economic growth and social change. Beginning from the 1870s, there was rapid growth in innovations and big businesses. This could be because there was population growth and when there is population growth, there is a high demand of products and other necessities in order to strive in society. Many immigrants from Europe, mostly from the eastern and southern Europe, and Asia moved to American cities. Additionally, farmers from rural America desired to increase economically in society and since corporations ruled and political problems occurred, they decided to move into the cities. Afterwards, the 1900s started with the dominance of progressivism which many Americans tried to improve and solve the problems that were caused or had arisen because of the industrialization of the Gilded Age. It was basically the time when progressives fought for legislations like regulation of big businesses, end of the political corruption, and protection of the rights of the people: the poor, immigrants, workers, and consumers. Thus, between the periods 1870 to 1920, big businesses had arisen and taken control of the political and economic systems through corruption and innovations. In response, American citizens reacted negatively and formed labor unions and political systems to diminish the power that large corporations had in America.
Laws were placed next in hopes of whipping America back into shape. Most of these laws tried to help to fix finance corporation's, unemployment,and money in banks. These laws created during the great depression were laws that tried to fix the economy but failed miserably. For example the Roosevelt administration in 1937 cut spending taxes and raised taxes for the everyday American making the economy even
Having gone through severe unemployment, food shortages, and a seemingly remiss President Hoover, the American people were beginning to lose hope. But sentiments began to turn as FDR stepped into office and implemented his New Deal programs. FDR and his administration responded to the crisis by executing policies that would successfully address reform, relief, and, unsuccessfully, recovery. Although WWII ultimately recovered America from its depression, it was FDR’s response with the New Deal programs that stopped America’s economic downfall, relieved hundreds of Americans, reformed many policies, and consequently expanded government power.
Throughout the late nineteenth and the early twentieth century, the United States economy changed dramatically as the country transformed from a rural agricultural nation to an urban industrial gian, becoming the leading manufacturing country in the world. The vast expansion of the railroads in the late 1800s’ changed the early American economy by tying the country together into one national market. The railroads provided tremendous economic growth because it provided a massive market for transporting goods such as steel, lumber, and oil. Although the first railroads were extremely successful, the attempt to finance new railroads originally failed. Perhaps the greatest physical feat late 19th century America was the creation of the transcontinental railroad. The Central Pacific Company, starting in San Francisco, and the new competitor, Union Pacific, starting in Omaha. The two companies slaved away crossing mountains, digging tunnels, and laying track the entire way. Both railroads met at Promontory, Utah on May 10, 1869, and drove one last golden spike into the completed railway. Of course the expansion of railroads wasn’t the only change being made. Another change in the economy was immigration.
After the Civil War the whole country suffered a great loss of life and industry. Entire cities were destroyed piercing the economy; the South was particularly affected by the war. Directly after the war the Klan saw much activity trying to get Democrats in office that would not support the advancements of former slaves. Eventually by the end of the 1880’s the South seemed to be more st...
Alabama: A Documentary History to 1900 states “it is a truism that the Civil War altered the economic life of the south” (Griffith, Alabama: A Documentary History to 1900). Before the Civil War Alabama’s economy many depended on agriculture and a work force of slaves. A new south had been created that brought “free labor and greater diversification” (Griffith, Alabama: A Documentary History to 1900). This is in part due to the boom in the iron industry. Mills and mines had existed before the war, although not as influential as they became after the war. Even though cotton was still the dominant export of Alabama, coal iron and steel were becoming an increasing source of income (Griffith, Alabama: A Documentary History to 1900).
As Document A suggests, Hoover did not want to be considered completely laissez-faire. He seemed less determined to preserve the extremely capitalistic society of the 1920's which was run, often corruptly, by political machines, such as Tweed. However, the success of the American economy under the private interest beliefs of Harding and Coolidge required him to ensure that the lack of intervention ... ... middle of paper ... ...ca afloat as shown in Document D. Roosevelt immediately gained the public's favor with his liberal ideas.
The Civil War has been viewed as the unavoidable eruption of a conflict that had been simmering for decades between the industrial North and the agricultural South. Roark et al. (p. 507) speak of the two regions’ respective “labor systems,” which in the eyes of both contemporaries were the most salient evidence of two irreconcilable worldviews. Yet the economies of the two regions were complementary to some extent, in terms of the exchange of goods and capital; the Civil War did not arise because of economic competition between the North and South over markets, for instance. The collision course that led to the Civil War did not have its basis in pure economics as much as in the perceptions of Northerners and Southerners of the economies of the respective regions in political and social terms. The first lens for this was what I call the nation’s ‘charter’—the Declaration of Independence and the Constitution, the documents spelling out the nation’s core ideology. Despite their inconsistencies, they provided a standard against which the treatment and experience of any or all groups of people residing within the United States could be evaluated (Native Americans, however, did not count). Secondly, these documents had installed a form of government that to a significant degree promised representation of each individual citizen. It was understood that this only possible through aggregation, and so population would be a major source of political power in the United States. This is where economics intersected with politics: the economic system of the North encouraged (albeit for the purposes of exploitation) immigration, whereas that of the South did not. Another layer of the influence of economics in politics was that the prosperity of ...
The US government’s role in the Great Depression has been very controversy. Different hypothesizes argued differently on the causes of the Great depression and whether the New Deal introduced by the government and President Roosevelt helped United States got out of the depression. I would argue that even though not the only factor, the US government did lead the country into the Great Depression and the New Deal actually delayed the recovery process. I will discuss five different factors (stock market crash, bank failure, tariff and tax cut, consumer spending and agriculture) that are commonly accepted to cause the depression and how the government linked to them. Furthermore, I will try to show how the government prolonged the depression in the United States by introducing the New Deal.
The Great Depression was the worst period in the history of America’s economy. There is no way to overstate how tough this time was for the average worker and there was a feeling of desperation that hung over the entire country. Current political wisdom leading up to the Great Depression had been that the federal government does not get involved in business or the economy under any circumstances. Three Presidents in a row; Warren G. Harding, Calvin Coolidge, and Herbert Hoover, all were cut from the same cloth of enacting pro-business policies to generate a powerful economy. Because the economy was doing so well during the “Roaring 20s”, there wasn’t much of a dispute
After the Civil War America boomed. Cities such as New York and Chicago grew exponentially in only a few short years. New York, for example, increased by over a million in just a decade. It seems the national morale greatly increased once the war ended. Jobs were plentiful in a vast variety, drawing people from all over the world. Advancements in technology, amusements and advertising helped to create a consumer culture which in turn created jobs for the people. This demand however came at a cost. The average per capita of all Americans increased by 35 percent which at face value is a remarkable increase in wages. However, the reality was that due to inequality of wages by skill, region, race and gender, the real wage of the average American
The great depression led us to have a better economic system and changed economic thinking. Laws were passed in order to prevent another depression from happening. Although many years have passed since the great Depression, things that were seen back then are still being seen today in 2014. High unemployment rates and low income among families forced to need the help of welfare are seen today as they were seen during the time of the Great Depression. The contrast between now and then however, is that the economy is under more control due to the laws that were passed to prevent another depression.
...its were contracting it; The Fed's inaction was the reason why the initial recession turned into a prolonged depression; The economy continually sank throughout Hoover's entire term. Under Roosevelt's New Deal, it rose five out of seven years. Attempts to blame Big Government for the Depression do not withstand serious scrutiny; The Smoot-Hawley Tariff had a minor impact because trade formed only 6 percent of the U.S. economy, and reducing trade gave Americans only that much more money to spend domestically. Hoover's other attempts at government intervention came mostly during his last year in office, when the Depression was already at its depth; The first nations to come out of the Great Depression were Sweden, Germany, Great Britain, and then everyone else did so after they adopted the Keynesian solution of heavy deficit government spending and the Keynesian economic policies have eliminated the depression from the world's economies in the six decades that have followed.