The Economy and the United States Government s-1930 s
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1 The Economy and the United States Government 1870 s-1930 s
2 1850 s-1870 s
3 1850 s-1870 s Two of the biggest changes in the economy of the United States during this time period was the end of slavery and the building of the railroad In 1851, the New York Tribune published a weekly budget for the average urban working-class family
4 1850 s-1870 s A family needed only $10.37 to live. $3 for rent; 0.54 for fuel/candles; $2 for clothing; 0.25 for household articles; 0.12 for the newspaper; and the rest for food By 1860, factory workers earned $3 a week for working up to 16 hours By 1877, a railroad brakeman earned an average of $1.75 a day for 12 hours work
5
6 Between , the United States experienced a pivotal period within business and industry Industrialization quickened and many new kinds of businesses were created The key to all of this industrialization was the railroad
7 Railroad The growth of the railroad spurned certain industries, Steel and Oil The railroad was the largest enterprise of the United States Trains traveled on schedule. Weather and the seasons did not slow down trade
8 By 1899, 4.7 million Americans worked in factories making up a total value of 11.4 billion yearly In 1878 America produced 820,000 tons of raw steel, by 1899 America was producing 12 million tons
9 Earning and Spending In 1883 coal miners earned $1.50 daily. A 2 room apartment (family + 5 children) ran $6 a month
10 Earning and Spending In 1897, a person could purchase the following: Gas Stove $ 8.63 Brown Suit $ 4.85 Organ $38.95 Piano $ Buggy $32-$65 Revolver $10
11 CAPTAINS OF INDUSTRY
12 Vanderbilt
13 Rockefeller
14 Carnegie
15 Strikes!!
16
17 Progressive Era
18 Turn of the Century Business/Politics
19 Because of the mass production of the United States, more immigrants arrived In million people entered the country
20 The Union Average union pay in 1900 was 0.34 per hour, non-union pay was 0.15 per hour The average work week was 53 hours Unskilled laborers had little chance for home ownership Semiskilled and skilled labors could afford modest homes
21 Modern Home Number 167 People could purchase a house through the Sears Roebuck catalog Modern Home Number 167: $754 materials, $1,000 labor 1913, The Heather $250
22 Big Business Since the industrialization of the railroad, business expanded through merging with similar companies (horizontal integration) Monopolies provided unfair labor practices and eliminated business
23 New Companies
24 Government Intervention Within this decade, the government started to limit the dealings of big business In 1904 the National Child Labor Committee was developed and addressed hours worked by small children In 1890, the Sherman Anti-Trust Act reduced the power of monopolies along with several Supreme Court Decisions
25 Teddy Roosevelt President Roosevelt attacked big business and made it an executive goal to reduce monopolies and the power of big business 1904, the Northern Securities case involved the dissolution of the Hill- Harriman Railroad
26 The book by Upton Sinclair wrote the Jungle The Jungle
27 New Inventions
28
29 Progressive Presidents
30 Progressive Presidents
31 Roosevelt vs. Industry
32 Progressive Presidents Woodrow Wilson wished to limit big business, however he didn t wish the government to have such a heavy hand Clayton Anti-Trust Act: outlawed monopolistic practices Federal Trade Commission (FTC): monitored the activities of big business
33
34 Business and Industry benefited after WW I. Planes, Autos, and radios were being produced in large quantities During this time the government stayed away from business and industry. President Harding and Coolidge adopted a laissez faire (hands off the economy) stance
35
36 When the stock market crashed in 1929, the date is referred to as Black Monday. Once FDR was elected after Coolidge ( ) and Hoover ( ), the philosophy changed.
37 Franklin D. Roosevelt Typically referred to as FDR. President for 4 terms, Many of FDR s ideas were from his cousin s progressive era: Conservation, breaking monopolies, regulating business, and improving work conditions.
38 FDR and Stock Market
39 FDR was very active right from the start. His first 100 days are now a bench mark for every incoming President. The bank systems were complete failures. Banks along with people played the stock market.
40 House, car, business loans How a Bank Works Your $ Land development New major business Stock Market
41 Banks were using this loan money, playing the stocks and with land development. When the stocks failed, people got scared and wanted their $ to live. The bank had so much out that they could not give people 100% of their money. Could not support businesses and the cycle starts going down hill.
42 Back to the 100 Days Emergency Banking Relief Act: Unsound banks would have to stay closed and only responsible banks could open. Federal Employees had salaries cut, and reduced pensions for veterans.
43 FDR also proposed the revoking of Prohibition. Civilian Conservation Reforestation Relief Act
44 Federal Emergency Relief Act: payment to the unemployed (over 5 million $ in 2 hours). Civil Works Administration: Offered jobs over $. Over 4 million applied. Built: Roads, athletic fields, airport, traveling art shows.
45 Farmers Farmers were hit the worst. On top of the Great Depression, the Midwest experienced the Dust Bowl ( ). At first, farms had too much surplus, this means high demand low prices. Farmers were paid to destroy crops and livestock
46 The Dust Bowl
47 Other Programs National Industrial Recovery Act: Established trade associations, codes, prices, and working conditions. Public Works Administration: build bridges and water supply systems. Tennessee Valley Authority (TVA): Make Tennessee Valley stable by placing dams on the Tennessee River.
48 Others Programs Truth-in-Securities Act: Not allowed to promote false info about stocks. Glass-Steagall Banking Act: (FDIC) All banks were financed and insured. Farm Credit Administration: Low interest loans for farmers. Home Owners Loan Corp: Low interest loans to buy homes.
49 And some more acts: Public Utilities Holding Company: Government permitted to break up utilities if they are the only one in an area, and if they didn t provide a good service. Social Securities Act of 1935: We pay into social security and use it when you retire.
From Prosperity to Depression: From Prosperity to Depression:
Topics of Discussion A. Role of the Federal Government B. Democrats: Divided C. Republicans: Pro-Business D. Warren Harding, 1921-23 E. Calvin Coolidge, 1923-1929 F. Hoover Inherits a Troubled Economy
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