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After years of minimal financial regulation, speculation, and the overuse of credit, the US stock market experienced a collapse in an event that would lead to the Great Depression. Investors panicked as stock prices plummeted, banks failed, unemployment spread, and businesses closed. This event exposed the many weaknesses in the economy and would eventually lead to major reforms that would stabilize the economy, expand government oversight, and prevent future events like this. (Klein, 325-51). -
Following the devastation of The Great Depression, FDR launched the New Deal, which implemented many new programs that would look to restore economic stability and confidence with the public. Agencies such as the FDIC, WPA and the CCC would provide jobs, insure banks, and invest in infrastructure that would all give the economy the boost it needed. The government's role in regulating markets, protecting labor, and managing economic recovery would grow significantly. (Fohlin, 1687-89). -
Following the attack on Pearl Harbor, the US rapidly transformed into a wartime production powerhouse. The government rationed and prepared resources to be used for the war effort and cooperated with corporations to manufacture weapons, ships, and planes at an incredible speed. Industrial output soared as millions entered the labor force and armed forces which saw unemployment dip. This mobilization would help solidify the nation as the world's leading economic power postwar. (Eloranta, 290-92). -
After World War II, the United States passed the GI Bill to support returning veterans and prevent mass unemployment. The law provided subsidized college tuition, low-interest home loans, and access to financing for businesses. During this era, millions of veterans gained higher education and entered skilled professions while home ownership surged. The GI Bill, through human capital investment and long term economic mobility, would provide opportunity for millions. (Kowalski, 167-80). -
After World War II, the US saw rising wages, strong unions, and a mass industrial capacity fuel a period of rapid economic growth and consumerism. Federal mortgage programs such as the FHA and VA loans enabled millions of families to purchase homes and along with the new highways and cheap cars that made commuting easy, there was a rapid suburban expansion. This era created a broad middle class and reshaped American capitalism around consumerism, homeownership, and families. (Doepke, 1031-73). -
In 1973, the OPEC oil embargo greatly reduced the US oil supply, causing fuel shortages and energy prices to skyrocket. Inflation also rose while unemployment surged which led to a period of stagflation. Industries also slowed, consumer costs increased, and public confidence in postwar economic stability started to crumble. The crisis pushed policymakers towards deregulation, monetary tightening, and market oriented reforms that would define the coming decades. (Zaleski, 135-41). -
During the 1980's, President Ronald Reagan pursued policies aimed at reducing government intervention and stimulating private enterprise. Major tax cuts, deregulation of financial and labor markets, and anti union strategies shifted economic power towards capital and corporations. Supporters highlighted investments and growth while critics pointed out rising inequality. Reaganomics saw a shift towards market driven and profit focused priorities that would shape the decades to come.(Jacob, 7-30). -
During the late 1990's, rapid internet expansion and venture capital fueled massive investment in technology startups. Companies with little to show were way overvalued and their prices driven by speculation and digital innovation. When expectations came crashing down in 2000, so did the markets and the US would see trillions in wealth evaporate and thousands of firms fail. Companies like Amazon and Google survived, laying the foundation for the modern technology economy. (Jovanovic, 49-68). -
In 2008, years of risky lending, subprime mortgages, and financial instruments tied to housing collapsed. When defaults surged, major banks and investment firms failed, credit markets froze, and millions lost their homes and jobs. The crisis exposed the dangers of financialized capitalism and insufficient regulation. Massive government bailouts and stimulus programs were used to prevent total economic collapse, inequality, and the role of the state in managing systemic risk. (Grigorev, 35-62).