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Effects of Tax Policies on Business
1910 In response to taxpayer complaints, the Appropriations Act of 1910 tightened disclosure regulations for Taft's corporation excise tax. Henceforth, tax returns would be open to inspection "only upon the order of the President." It was a blow to progressives in both parties, who had hoped the tax would serve as a means to regulate private corporations by fostering the availability of accurate financial information. -
Inflation
$1 in the year 1910 is equivalent in purchasing power to $25.35 in 2018, a difference of $24.35 over 108 years. -
US Gross Domestic Product of 1910
33.4 -
Effects of Government Expenditures
Impact of government spending on the economy. There is a high possibility that the rise in taxes will negate the impact of rising government spending which would leave Aggregate Demand unchanged. -
Interest Rate Fluctuations
Interest is simply the cost of borrowing money. As with any good or service in a free market economy, price ultimately boils down to supply and demand. -
US Per Capita GDP in 1910
4,694 -
Unemployment Annual Average of 1910
Number of unemployed: 2,150 (2,150,000)
Change from previous year: 280 (1,870)
Percent of Civilian Labor Force: 5.9%
Percent of Nonfarm employees: 9.1%
(number in thousands of persons 14 years old and over) -
GDP per capita of 1910
GDP: 4964
Growth Rate: -1.05% -
Fiscal Policy
Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. It is the sister strategy to monetary policy through which a central bank influences a nation's money supply. -
Business cycles
A business cycle is the rise and fall of business activities within an industry that include periods of profitability and periods of loss. Business cycles do not occur at regular intervals. These cycles occur irregularly but repetitively. Typical business cycles include expansion, a peak, contraction and recovery. When dramatic business cycles occur in different industries, it often affects the national economy as a whole and not just the industry experiencing the fluctuation. -
Period: to
Business Period of 1910 - 1916
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Inflation
$1 in the year 1911 is equivalent in purchasing power to $25.35 in 2018, a difference of $24.35 over 107 years. -
US Gross Domestic Product of 1911
34.3 -
GDP per capita of 1911
GDP: 5046
Growth rate: 1.65% -
Unemployment Annual Average of 1911
The number of unemployed: 2,290
Change from previous year: 140
Percent of Civilian Labor Force: 4.8%
Percent of Nonfarm employees: 7.1% -
Period: to
The Panic of 1910 - 1912
The Panic of 1910–1911 was a slight economic depression that followed the enforcement of the Sherman Anti-Trust Act. It mostly affected the stock market and business traders who were smarting from the activities of trust busters, especially with the breakup of the Standard Oil Company.
Business Activity: -14.7%
Trade and Industrial Activity: -10.6% -
Period: to
Standard Oil Company v. United States
The Supreme Court found Standard Oil guilty of monopolizing the petroleum industry; subsequently dividing Standard Oil into several geographically separate firms. -
Inflation
$1 in the year 1912 is equivalent in purchasing power to $24.87 in 2018, a difference of $23.87 over 106 years. -
US Gross Domestic Product of 1912
37.4 -
GDP per capita of 1912
GDP: 5201
Growth rate: 3.07% -
Unemployment Annual Average of 1912
Number of unemployed: 1,960
Change from previous year: -330
Percent of Civilian Labor Force: 5.2
Percent of Nonfarm employees: 7.9 -
Inflation
$1 in the year 1913 is equivalent in purchasing power to $25.15 in 2018, a difference of $24.15 over 105 years. -
Consumer Price Index of 1913
The annual average was 9.9 while there was no rate of change because this is the first year that CPI was recorded. -
US Gross Domestic Product of 1913
39.1 -
Unemployment Annual Average of 1913
Number of unemployed: 1,680
Change from previous year: -280
Percent of Civilian Labor Force: 4.4%
Percent of Nonfarm employees: 6.6% -
GDP per capita of 1913
GDP: 5301
Growth Rate: 1.92% -
Henry Ford Develops the Modern Assembly Line
On this day in 1913, Henry Ford installs the first moving assembly line for the mass production of an entire automobile. His innovation reduced the time it took to build a car from more than 12 hours to two hours and 30 minutes. -
Founding of the Federal Reserve System
The Federal Reserve System, often referred to as the Federal Reserve or simply "the Fed," is the central bank of the United States. The responsibilities of the Federal Reserve include influencing the supply of money and credit; regulating and supervising financial institutions; serving as a banking and fiscal agent for the United States government; and supplying payments services to the public through depository institutions like banks. -
Consumer Price Index of 1914
The annual average was 10.0 while the annual percent change (rate of inflation) was 1.3% -
US Gross Domestic Product of 1914
36.5 -
Unemployment Annual Average of 1914
Number of unemployed: 3,110
Change from previous year: 1,430
Percent of Civilian Labor Force: 8.0
Percent of Nonfarm employees: 11.9 -
Monetary Policy
Monetary policy is the process by which the monetary authority of a country, typically the central bank or currency board, controls either the cost of very short-term borrowing or the monetary base, often targeting an inflation rate or interest rate to ensure price stability and general trust in the currency. -
GDP per capita of 1914
GDP: 4799
Growth Rate: -9.46% -
The Beginning of World War I
Short-term impact: Economic growth
Long-term impact: Great Depression -
Panama Canal Completed and Opened to Shipping
In 1904, the United States bought the Canal Zone. It wanted to expand its shipping and naval power between the Atlantic and Pacific Oceans. It paid $10 million to Panama and $40 million to the French. U.S. engineers decided a canal lock would protect ships from landslides in the Andes Mountains. -
Consumer Price Index of 1915
The annual average was 10.1 while the annual percent change (rate of inflation) was 0.9% -
Consumer Price Index of 1915
The annual average was 10.9 while the annual percent change (rate of inflation) was 7.7% -
US Gross Domestic Product of 1915
38.7 -
Unemployment Annual Average of 1915
Number of unemployed: 3,840
Change from previous year: 730
Percent of Civilian Labor Force: 9.7%
Percent of Nonfarm employees: 14.3% -
GDP per capita of 1915
GDP: 4864
Growth Rate: 1.35% -
Inflation
$1 in the year 1916 is equivalent in purchasing power to $22.84 in 2018, a difference of $21.84 over 102 years. -
Consumer Price Index of 1916
The annual average was 10.9 while the annual percent change (rate of inflation) was 7.7% -
US Gross Domestic Product of 1916
49.6 -
GDP per capita of 1916
GDP: 5459
Growth Rate: 12.2% -
Unemployment Annual Average of 1916
Number of unemployed: 1,920
Change from previous year: -1,920
Percent of Civilian Labor Force: 4.8%
Percent of Nonfarm employees: 7.0%
