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Panic of 1910
The U.S. economy was in a recession from 1910-1912. This time period was marked by decreased commercial and industrial activity and it lasted one year and seven months. It was also marked by deflation. -
Period: to
State of the U.S. economy
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Titanic sinks
The Titanic sinks killing 1, 517 people. American people begin to lose faith in the government, making the government realize that its laws needed to be updated. The government passed a series of preventative laws and regulations to prevent another marine disaster. -
Panama Canal Completed
The Panama Canal helped keep the cost of imported goods down, reducing inflation -
World War 1
World War I began and stimulated the U.S, economy. A 44-month economic boom ensued from 1914 to 1918, first as Europeans began purchasing U.S. goods for the war and later as the United States joined the battle. -
Prohibition
An amendment to the Constitution prohibited the sales, distillation, and distribution of alcohol. Restaurants began to fail because nobody wanted to spend money without ability to buy alcohol. Thousands of jobs were lost because distilleries, bars, and breweries closed down. The government lost money because there was no liquor tax money.
