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A banking panic erupts when New york's knickerbocker bank fails
depositors rush to withdraw their savings causing the collapse of 246 other banks -
the federal reserve act is created to avert further financial panics
acts as a lender of last resort. the 16th amendment is passed to allow congress to charge a federal income tax on all citizens -
assembly line developed
developed by heny ford and becomes popular through the social ramifications of mass production. -
wall street crash.
known as black thursday is the worst economic crash in U.S. history. it signals the start of the 12 year great depression -
the great depression deepens
10,000 U.S. banks failed and the nations workforce reaches 25% unemployment -
president stops a run on the banks
declares a four day bank holiday and abandons the international gold standard. congress passes the emergency banking act to prevent more banks from closure -
huge economic boom
huge economic boom from WWII causes the end of the great depression. american industry slows production of cars and starts the production of aircraft. expanded production brings the nation close to full employment. -
korean war
the korean war creates prospects of additional government deficits and the issuance of new government debt. -
unemployment assistance act
congress passes the unemployment assistance act establishing a needs test and requiring the federal government to share 50% of the costs -
$12 billion tax cut
congress passes JFK's $12-billion tax cut and causes the economy to take off. the job corps is created -
gas prices rise
a decline in agriculture and rising gas prices causes unemployment to rise and inflation to reach 10% -
inflation rise
inflation shoots up as Paul Volcker announces that the fed will try to break the back of inflation by targetting the money supply itself -
alaska
the alaska land act designates over 100 million as park and wilderness land preventing of expansion on alaskas huge mineral and oil reserves -
stocks
the U.S. stock market plunges dangerously -
debt
the debt ceiling has been raised -