Economic Timeline

Industrial Revolution

1760-1840

1760-

1840

- Factory production

- England first

- Smith influence

- Individualism & Capitalism

- No Intervention

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Trickle Down Economics

1890

- The theory states that tax breaks and benefits for corporations and the wealthy will trickle down to everyone else

- Arguments that the added benefits the wealthy receive adds to the growing income inequality in the country

- The policies should enable wealthy owners to create more jobs for middle and lower class citizens, meaning the benefits are felt by everyone

1890's

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Winnipeg General Strike

1919

- Low wages = rising prices

- Unstable employment

- Immigrants faced discrimination

- Poor housing and health conditions

- Building & metal workers went on strike for higher wages

- Factories, shops, transit and city services shut down

- Strike = bankruptcies and unemployment

1919

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The Roaring 20's

1920-1929

- Auto and Airline industries emerged

- America's economy grew 42%

- Mass productions

- Consumer goods into houses

- Technological advances

- War = more factory production

1920-

1929

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Establishment of the Soviet Union

1922-1991

1922-

1991

- Ownership of the means of production.

- Collective farming.

- Industrial manufacturing.

- An administrative-command system managed a distinctive form of central planning.

- They ran a command economy which means that the government controlled all aspects of the economy.

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Stalin's 5 Year Collectivization Plan

1922-1991

1928

- 50% increase in industrial output

-Collectivization was the reduction of the cutting of livestock in half

- The Soviet Union Drought (1946) delayed agriculture production

- Increase in industrial workers for the new factories

- Agricultural and industrial growth

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Stock Market Crash/ Bank Runs

1929

- New York Stock Exchange crashed

- People buying stocks = prices to unsustainable levels

- Stock market lost $14 billion

- Global economic collapse

- Unemployment = 30% of workers

- One of the causes of the Great Depression

1929

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The Great Depression

(Canada)

1929-1933

- Known as the "Dirty 30's" becuase of drought in praries

- Loss of jobs and saving around Canada

- Millions left hungry, unemployed and homeless

- “Depression” is used to describe an economic decline that lasts for a long time

1929-

1933

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The Great Depression

(United States)

1929-1939

- Industrial production fell by 47%

- GDP (gross domestic product) Declined by 30%

- Unemployment reached more than 20%

- Overproduction, executive inaction, ill-timed tariffs, and an inexperienced Federal Reserve

- Stock market crash of 1929 =Wall Street went into a panic and wiped out millions of investors.

1929-

1939

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Demand Side Economics

1930's

- Demand for goods and services drive economic activity

- Supply of goods translates to economic growth for a country.

- Government spending or exports can lead to higher economic growth.

1930's

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Keynesian Economics

1930's-1970

- Theory by John Maynard Keynes

- Invented to try and understand the Great Depression

- The total economy spending has effects on output, employment, and inflation

- Lacking overall demand = long periods of high unemployment

- Economies output of goods: Consumption, Investment, Government purchases, and Net Exports

1930-

1970

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Credit Unions

(North America)

1931

1931

- Hermann Schulze-Delitzsch and Friedrich Wilhelm Raiffeisen created credit unions

- First rally of the Credit Union Movement was held in Little Dover, NS in 1931

- Believed that if you combine your savings and make loans to neighbors and co-workers, you will have a better standard of living

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Roosevelt New Deal

1933-1939

- Provides jobs for workers

- Profitable for buisnesses

- federally funded series of infrastructure and improvement projects across America

- Spending and loan policies broke new ground in the federal government's role in the economy

- Provides aid to the poor, building state and local public works, subsidizing farmers, influencing housing markets,

1933-

1939

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Post World War I Isolationism

1937-1945

1937-

1945

- Caused by the Great Depression and memory of loses in WW1

- No involvement in European and Asian conflicts

- Not involved in international politics

- American citizens pushed for policies and opinion to isolationism

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Supply Side Economics

1940-1980

- Increase in supply of goods = economic growth for the country.

- Cutting taxes, lowering borrowing rates, and deregulating industries to foster increased production

- Higher rate of economic growth without causing inflation.

- Lower tax rates boost economic growth

1940-

1980

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Stagflation

1970's

- An economic condition characterized by slow growth and high unemployment (economic stagnation) mixed with rising prices (inflation)

- Caused by a combination of slow economic growth, high unemployment, and rising prices

- A result of of monetary and fiscal policies and an oil embargo

- Stagflation caused Keynesian economics to rethink their ideas

1970's

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Monetarism/Milton Friedman

1760-1840

1970's

- A theory which states that governments can foster economic stability by targeting the growth rate of the money supply

- Based on the belief that the total amount of money in an economy is the primary factor of economic growth

- Friedman suggested that monetary policy should be done by targeting the growth rate of the money supply to maintain economic and price stability

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Reaganomics

1980

- The four main goals of the policy was to:

1. Reduce the growth of government spending

2. Reduce the federal income tax and capital gains tax

3. Reduce government regulation

4. Tighten the money supply in order to reduce inflation

- Problem was it reduced interest rates, inflation, and caused unemployment

1980

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Perestroika

1985-1991

- Perestroika created shortages, political, social, and economic tensions within the Soviet Union

- Perestroika relaxed government control of the economy

- Resulted in political freedom.

- Revive the economy through decentralization

1985-

1991

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Glasnost

1986-1991

1986-

1991

- A Soviet policy permitting open discussion of political and social issues and freer dissemination of news and information

- Increased openness and transparency in government institutions and activities in the Soviet Union (USSR)

- Allowed Soviet citizens to publicy discuss the problems of their system and potential solutions

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Gorbachev

1987-1991

- Eliminated the monopoly that the Ministry of Foreign Trade had once held on most trade operations.

- Local managers gained greater authority over farms and factories.

- People were allowed to open small private businesses.

-He made changes to revive the Soviet economy.

1987-

1991

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Thatcherism

1990

- Promoted low inflation

- State and free markets through tight control of the money supply

- Privatization and constraints on the labor movement

- A belief in free markets and a small state

1990

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Recession

1990-1991

1990-

1991

- Was a result of the slow economic growth in the years previous

- Caused by restrictive monetary policies enacted by central banks, primarily in response to inflation concerns, and the loss of consumer and business confidence as a result of the 1990 oil price shock

- A slow employment rise

- The recession demonstrated the growing importance of financial markets to the American and world economies

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Blair's 3rd way

1997-2007

- Attempts to reconcile right-wing and left-wing politics

- Expansion of the welfare state during his time in office (Tony Blair)

- A set of political beliefs and principles that is neither extremely right-wing nor extremely left-wing

1997-

2007

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Sub-Prime Mortgage Crisis

2007-2010

- Occurred when banks sold too many mortgages to feed the demand for mortgage-backed securities sold through the secondary market

- The Lenders were responsible because they were the ones who advanced loans to people with poor credit and a high risk of default

- Consequences were housing foreclosures, immigration troubles, changes in the workforce, income levels and higher unemployment, as well as a spike in the population

2007-

2010

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Economic Crisis of 2008 (Causes)

2008

2008

- Low-interest rates

- Low lending standards

- Price bubble's encouraged millions to borrow beyond their means

- Banks and sub prime leaders sold mortgages on the secondary market in order to free up money to grant more mortgages.

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Economic Crisis of 2008 (Effects)

2008

2008

- The decline in overall economic activity was modest at first

- Affected the banking sector by causing banks to lose money on mortgage defaults

- US gross domestic product fell by 4.3%

- Deepest recession since World War II.

- Interbank lending to freeze, and credit to consumers and businesses to dry up.

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Obamanomics

2008

- Economic policy of the Barack Obama administration

- Characterized by moderate tax increases on higher income Americans

- Designed to fund health care reform.

- Reduce the federal budget deficit

- Decrease income inequality

2008

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Canada's Economic Action Plan

2008-2014

2008-

2014

- Provided over $20 billion in tax relief for individuals, families and businesses

- The Canadian dollar had depreciated by more than 20%

- This depreciation encouraged Canadian exports.

- $700 billion bank bailout, now known as the Troubled Asset Relief Program

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Canada's Covid Economic Plan

2020

- The Canada Recovery Sickness Benefit provides $500 ($450 after taxes withheld) per week for up to a maximum of six weeks

- Canadian and international researchers to fast track research and development (R&D)

- Government, universities, and Canadian business to accelerate the development of diagnostics tools and medical countermeasures for a rapid front-line response to protect.

2020

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