Government Timeline

By ember.craig33

  • Federal Reserve System Created

    • Congress passes the Federal Reserve Act to stabilize the U.S economy and manage inflation/Deflation through monetary policy.
    • Context: Progressive Era reforms and global industrialization
    • Source: Federal Reserve History. (federalreservehistory.org)
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    The Great Depression

    • U.S. experiences severe deflation due to economic collapse
    • Federal Reserve is criticized for failing to prevent the crisis
    • Context: Stock Market Crash of 1929 and New Deal policies Source: Library of Congress (loc.gov)

  • WWII Wartime Price Controls

    • Office of Price Administration was created to control inflation during WWII
    • Government used rationing and wage controls
    • Context: Global War economy reshaping financial systems
    • Source: National WWII Museum (https://www.nationalww2museum.org/)

  • Nixon End Gold Standard ("Nixon Shock")

    • President Richard Nixon suspended the U.S. dollar's convertibility into gold
    • Inflation rises as the U.S. shifts to a fiat currency system
    • Context: Vietnam War and Cold War tensions
    • Source Federal Reserve History( federalreservehistory.org)
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    OPEC Oil Embargo

    • Oil prices quadruple, leading to "stagflation"
    • U.S. passes energy-related policies to reduce dependence on foreign oil
    • Context: Middle East conflicts; Yom Kippur War Source: U.S. Energy Information Administration. (eia.gov)
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    Federal Reserve Raises Interest Rates

    • Fed Chair Paul Volcker dramatically hikes interest rates up to 20% to fight double-digit inflation
    • Leads to recession but ultimately stabilizes prices Context: End of Carter administration, beginning of Reagan era Source: Federal Reserve (Federalreservehistory.org)

  • Stable Inflation Era

    -Inflation remains low during the economic boom
    -Context: Tech revolution, globalization, and U.S. budget surpluses
    Source: Bureau of Labor Statistics (bls.gov)

  • Global Financial Crisis

    • Inflation dips and fears of deflation rise as the housing market crashes
    • Federal Reserve uses "Quantitative Easing" to stabilize the economy Context: Worldwide recession Source: Brookings Institution (https://www.brookings.edu/)

  • Covid-19 Pandemic Economic Shock

    -Government stimulus checks and supply chain disruptions cause inflationary pressures
    - Fed keeps interest rates near zero to support recovery
    Context: Global health crisis
    Source: Congressional Research Service (crsreports.congress.gov)
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    Highest Inflation in 40 Years

    • Inflation peaks at 9.1%
    • Related Law: Inflation Reduction Act. Invests in healthcare, energy, and deficit reduction
    • Context: Russia/Ukraine war disrupts energy and food supply Source: U.S. Bureau of Labor Statistics, White House (https://www.bls.gov/)

  • Key Takeaways

    -Inflation has been a recurring issue in U.S history, tied to wars, global crises, etc...
    - Government tools: Federal Reserve policy, price controls, and laws like the Inflation Reduction Act.
    - Today, inflation remains a major concern to everyone as the U.S. balances economic growth and price stability.