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Key Economic Events in History
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Spindletop
On this day, a Spindletop struck oil in Beaumont, Texas. No oil field in the world had ever been so productive and this increase in readily available oil made the U.S. the world's leading oil producer. -
San Francisco Earthquake
An earthquake devestates San Francisco leaving 250,000 homeless, 25,000 buildings destroyed and 500 dead. -
Panic Begins
The stock market begins to drop and financial panic begins resulting in unemployment and bank failures by the end of 1907. -
Ford's Assembly Line
On this day in history, Ford installs the first moving assembly line for the mass production of automobiles. This ultimately changed production in the U.S. and made buying cars easier and more cost-effective. -
U.S. Joins War
The U.S. declares war on Austria-Hungary 3 years after it begins in Serbia. -
18th Amendment is Passed
The 18th amendment is passed. This amendment prohibits manufacture and sale of intoxicating liquors. -
U.S. Helps Out Panama
On this day, the U.S. senate pays Columbia $25 million in return for Columbia's recognition of Panama's independance. -
Interest Rates Skyrocket
On this day, interest rates on short term loans reached a record high of 10%. -
Black Thursday
The Wall Street crash on this date, known as Black Thursday, is the most devestating stock market crash in the U.S. to date. This event begins the terrible Great Depression that plagued the U.S. throughout the 30s. -
Major NYC Bank Closes
Bank of the United States in New York closes. This is the most significant bank failure this year for the U.S. -
Franklin Roosevelt Elected President
Roosevelt's election was a major event in the U.S. Economic history due to his proactive presidency and his policies called The New Deal. He ultimately leads the U.S. out of the depresssion. -
Civil Works Administration
On this date, the Civil Works Administration begins creating 4 million jobs for young unemployed men. All of the jobs involved manual labor and were merely temporary. However, the policy certainly stimulated the economy and provided a salary for those out of work. -
Social Security
Roosevelt signs the Social Security Act, including pensions and unemployment insurance. -
Japan Attacks Pearl Harbor
The U.S. naval base in Hawaii was attacked on this day by 353 Japanese fighters, bombers, and torpedo planes. They damaged all eight battlships, sinking four and shot down 188 U.S. aircrafts. 2,402 Americans were killed and 1,282 wounded. This directly lead to America's entry into WWII. The next day, America declared war on Japan. -
Meat, Fat, and Cheese Rationings Begin
The government introduced rationing during WWII because certain items were in short supply and by limiting the amount each citizen could buy, it made sure everyone was getting their fair share. -
Strikes
1946 becomes the worst year in history for strikes. The Unions were unable to strike during the war. Therefore, now that it was over, strikes occured on a large scale. Electrical workers, the steel industry and the meat-packing industry are just a few examples of occupations that held strikes. -
Bank Merger
The Chase National Bank and the Bank of the Manhattan Company are merged into the nation's second largest bank. -
Minimum Wage Increased
On this day, Eisenhower increased minimum wage from 75 cents to $1 per hour. -
Steel Strike
During this time, a Nationwide Steel Strike cuts steel output by 90%. The strike lasted 116 days which is the largest steel strike in U.S. history. The union eventually won their case, recieving a higher minimum wage. However, the strike also led to the ultimate replacement of the domestic steel industry in the long run. -
Trade Ban With Cuba
Kennedy orders a ban on almost all trade with Cuba startingof February 7. He did this because Cuba had an alliance with Russia during the cold war. Because Cuba is so close to the U.S., trading with them was risky and therefrore, JFK issued an Embargo. -
Flash Crash of 1962
On this day, the NYSE experiences its greatest loss since 29 October 1919. The Dow Jones Industrial Average fell 5.7%. -
Tax Reform Act
The Tax Reform Act is passed. It reduced income taxes for the poor and single persons. Furthermore, it reduced the surcharge to 5% and repealed investment tax credit. It became effective on April 18,1969. -
Oil Embargo Begins
On this date, the Organization of Arab Petroleum Exporting Countries proclamed an oil embargo. The price of oil was raised and gas was rationed. -
Ford Becomes President
Richard Nixon resigns due to his involvement in the Watergate Scandal. His vice-president, Gerald Ford succeeds him and pardons him for his crimes -
Chrysler Comes Close to Bankruptcy
The Chrysler Corporation requests a $1 billion federal loan to prevent bankruptcy. If Chrysler was to fail, it would lower the morale of Americans during the height of the cold war. Chrysler was a sign of America and gave people hope. -
Unemployment Reaches 10.8%
Unemployment reaches 10.8% - the highest since 1940. -
Bull Market Begins
A Bull Market, meaning a market in which share prices are rising, begins on Wall Street.The inflation rate falls to 6.1% -
Stock Market Crash
The stock market crashes, with the Dow Jones plummeting a record 508 points. A crash in the newer computer programming system and economic factors are blamed for the massive crash. -
U.S. Loans to Mexico
Clinton uses emergnecy powers to extend a $20 billion loan to help Mexico avert financial collapse. He justified this decision by claiming if Mexico's economy completely failed, it would in turn negatively effect the U.S. economy. -
Tax Reduction
Congress passes the biggest tax reduction in 16 years -
Poverty Rate Low
In 1998, the porverty rate fell to its lowest at 12.7%. Furthermore, for the first time since 1975, all four U.S. regions experienced a significant increase. -
9/11
Terrorists attack the World Trade Center and Pentagon thus leading into the American war against terror. Thousands were killed that day. -
Suddam Husein
Suddam is captured by U.S. troops, a major victory in the war against terror. -
Recession Begins
The current state of the U.S. economy is not doing so well. It all started in December of 2007 when the recession began.
