Question

1. Does the term “prosperity decade” accurately describe the 1920s? Why or why not?

2. The stock market crash of October 1929 explains the Great Depression. Critically evaluate.

3. What are the major areas of federal government intervention into the economy between 1887 and 1970? In each case, provide a brief rationale that explains why the government intervened.

4. Compare and contrast the role of the federal government in the 1887-1914 time period with the New Deal era. Be sure to explain the major areas of intervention and provide an explanation for the federal government’s involvement in the economy.

5. Why was the south stagnant after the Civil War?

6. How has baking regulation evolved in the U.S.?

7. Characterize the free banking era: how did it work; was it successful; why did it end?

8. Was the labor movement successful between 1860-1918? (Did is meet its goals, markedly change working conditions for the majority?) What about after WWI? What contributed to any differences?

9. Identify and explain some of the major technological changes in American industry that permitted the growth of so-called big-business. 10. Describe some of the problems that the National Banks faced during the late 19th century? How did Congress attempt to solve the problem? Did it work?

11. What role did the railroads play in economic growth between 1865 and 1920? Identify some of their effects on the growth of a national market.

12. What forces operated in the late 19th century to bring about passage of the Federal Reserve Act? What specific defects in the financial structure was the Act meant to remedy? Was it successful?

13. What was the "Crime of 73"? Why was it "committed"? Who benefited and who lost from the policies associated with the "Crime of 73"? Can you suggest an alternative policy that might have addressed the grievances of the losers without recreating the reason the "crime" was "committed"?

14. Why has the tertiary sector (government) grown so much?

15. Why was the Great Depression the only great depression that the U.S. has suffered? What are the chances that the U.S. will suffer another economic catastrophe like the Great Depression in the next half century?

Answer 1

1. Does the term “prosperity decade” accurately describe the 1920's? Why or why not?

The 1920's was the time period which was led by tax reforms which increased the net disposable income for the society at large and increase the flow of money in the economy.

These tax reforms led to consumers demanding more products and services and in particular rise in the automobile sector which was heavily backed by the government.

Due to the rise in living standards for people and rapid reforms thus, which happened it is accurately described as the prosperity decade which happened post a major war between nations and was aimed at economy recovery respectively.

2) The stock market crash of October 1929 explains the Great Depression. Critically evaluate

The stock market exchange was fueled by over valuation of shares wherein people even took loans to buy shares at rates that were much higher than the actual value of the company in reality.

This led to a tough situation wherein when prices of the shares corrected mass sale of shares happened which largely destabilized the economy.

It also led to a banking sector issue wherein people rushed to the banks to withdraw their deposits and the bank was left with little money to grant as loans thus precipitating what was known as the Great Depression.

Question 3) what are the major areas of federal government intervention into the economy between 1887 and 1970? In each case, provide a brief rationale that explains why the government intervened.

The times between 1887-1970 saw major recessions happen in the United States. These were primarily led by weak economic conditions that happened and saw a rapid decline in demand for products and services or was the result of direct War between nations.

As a result of which, panic sales were common and the government had to mandatorily intervene since the markets could not sustain shocks all by themselves.

The period also saw various cyclical variations which if unchecked would be extremely harmful for the society. The federal government intervened by changing the tax rates and investment policies that helped the economy in growing at a stable rate.

Question 4)   Compare and contrast the role of the federal government in the 1887-1914 time period with the New Deal era. Be sure to explain the major areas of intervention and provide an explanation for the federal government’s involvement in the economy.

The federal government tried little during the time of the world war which is between 1887-1914 to control the economy. Most expenses occurred were on War and weaponry for this.

The New Deal era, was led by then preside Franklin D. Roosevelt who introduced a series of reforms, which included sectors such as public programs, tax reliefs, financial reforms etc., which were aimed at pumping more money in the economy post the Great Depression.

The main aim of the government was to stabilize the economy which was reeling with low demand for products and services in that period of time respectively.