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Economic Changes
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Executive Order 11615 is Enacted
Congress granted the power to regulate prices and wages to the president. This decision was intended to help stop economic problems such as inflation. The order was passed under president Nixon, who proceeded to establish a 90 day wage and price freeze. -
Stagflation Ravages America
Stagflation was a combination of stagnation and inflation that struck the American economy. In other words, unemployment was high while wages and prices rose. This is a very unusual combination when it comes to economics. During this time, tax rates also increased rapidly, causing the "bracket creep," where people had to pay increasing percentages of their earnings in taxes as they moved up through higher tax brackets. -
OPEC Boycotts Oil Exportation
Several major oil exporters in the Middle East came together and stopped shipping oil to the United States. This was in retaliation of the United States' decision to support the Israelis instead of the Arabs in the Yom Kippur War. As a result, the price of oil in the United States skyrocketed, causing an economic crash that led to widespread inflation. -
Humphrey-Hawkins Full Employment Act is Signed
President Jimmy Carter passed the Humphrey-Hawkins Act in an effort to restore the struggling economy. The act was meant to stimulate production, increase employment rates, balance trade, and stabilize prices. It also stated that discrimination would not be allowed in any programs created under the act. -
The Kemp-Roth Tax Cut is Signed
A reduction in taxes under president Ronald Reagan. The tax cut was a major part of Reagan's plan for getting the economy back on track, called Reaganomics. Reagan believed that a major tax reduction would allow people to have more money to spend and allow to circulate in the economy, helping stop inflation and unemployment. -
Tax Reform Act of 1986 is Passed
Another tax reduction passed under Reagan that seemed to reverse the bracket creep. It greatly reduced the top tax percentages in both personal and corporate incomes. -
The Americans with Disabilities Act is Signed
An act passed under president George H.W. Bush that prohibited discrimination based on mental and physical disabilities. Such discrimination was not allowed in public transportation, employment, public facilities, etc. Establishments under the act also had to make efforts to accomodate people with disabilities, such as adding wheelchair ramps to properties. -
The NAFTA is established
An act passed under president Clinton that reduced tariff barriers in an effort to globalize the economy. NAFTA was also signed by Canada and Mexico. The act promoted trade between the three North American countries. -
The Welfare Reform Act of 1996 is Signed
An act passed under president Clinton in an effort to reform food and cash welfare programs. It especially helped struggling families. The act also required citizenship for many benefits. -
EGTRRA is Signed Into Law by President George H.W. Bush
An act passed under president George W. Bush that decreased taxes and altered retirement plans. Specifically, it reduced income and capital gains tax percentages, established IRAs, and made non-qualified retirement plans more flexible. -
A Recession Hits America
The American, as well as world economy began to decline. This recession would evolve into the worst to hit America since the great depression. Businesses closed, and unemployment rose rapidly. -
The Stock Market Crashes
Massive financial institutions began to fail, cuasing banks to fail. Finally, the stock market crashed. People all around the world lost a lot of money and economies suffered everywhere. The stock market crash was also closely related to the housing market crash. -
The Patient Protection and Affordable Care Act is Signed Into Law by President Barack Obama
A reform of the health care system under presidnet Obama. Its goal was to make hospitals and physicians more affordable and more efficient. Health insurance would also become more affordable. -
The Dodd-Frank Wall Street Reform and the Consumer Protection Act are Signed
These acts were passed under president Obama in reaction to the recession of 2008. They were supposed to restore financial stability by allowing the financial system to be made more public and ending tax bailouts. -
The Budget Control Act of 2011 is Signed
An act passed under president Obama that ended the debt-ceiling crisis of 2011. It established the Joint Selection Committee on Deficit Reduction to come up with a plan to reduce deficit; and a balanced budget amendment to limit debt increases.
