U.S. EconomyU.S. Economy

An IntroductionAn Introduction

HistoryHistory

Began with the early settlers and their Began with the early settlers and their attempts to gain wealthattempts to gain wealth

Progressed from colonial economy – to Progressed from colonial economy – to small agricultural economy- to complex small agricultural economy- to complex industrial economyindustrial economy

ColonialColonial America was settled by charter companies America was settled by charter companies

(groups of stockholders investing to (groups of stockholders investing to improve financial gain)improve financial gain)

Did not profit – were turned over to settlers. Did not profit – were turned over to settlers. Thus the birth of a new nation!Thus the birth of a new nation!

Small self-sufficient farms spring up.Small self-sufficient farms spring up.

Small AgriculturalSmall Agricultural

Industries designed to support the way of Industries designed to support the way of life emerge. (mills, smiths, etc)life emerge. (mills, smiths, etc)

Regions had specialtiesRegions had specialties New Constitution set up a “common market” New Constitution set up a “common market”

-no internal tariffs.-no internal tariffs. New Secretary of Treasury lays out New Secretary of Treasury lays out

economic planseconomic plans New import tariffs and a national bank begin New import tariffs and a national bank begin

to add complexity to the economy.to add complexity to the economy.

Complex Industrial Complex Industrial Small scale farming becomes larger with Small scale farming becomes larger with

Southern PlantationsSouthern Plantations New nation creates an infrastructure of New nation creates an infrastructure of

roadsroads With industry becoming larger in the North, With industry becoming larger in the North,

there was rapid urbanization.there was rapid urbanization. New inventions and the discovery of oil & New inventions and the discovery of oil &

coal lead to “second industrial revolution” coal lead to “second industrial revolution” Government becomes involved in regulationGovernment becomes involved in regulation

2020 thth Century Century Great Economic Depression & major world Great Economic Depression & major world

conflictconflict New nations develop around the globeNew nations develop around the globe Increased military spending/defense Increased military spending/defense

contractingcontracting Inflation issues reach the forefront of politicsInflation issues reach the forefront of politics Economy is essentially a roller coaster, with Economy is essentially a roller coaster, with

ups and downs thru the decadesups and downs thru the decades Government involvement increases with tax Government involvement increases with tax

hikes and cuts.hikes and cuts.

2121 stst Century Century

Late 1990’s saw economic boom with the Late 1990’s saw economic boom with the dot com industries.dot com industries.

New century brought economic slowing, and New century brought economic slowing, and major terrorist attack.major terrorist attack.

Slight recovery seen, beginning about 2003Slight recovery seen, beginning about 2003 Economy begins seeing signs of recession/Economy begins seeing signs of recession/

depression in 2007-present.depression in 2007-present.