The US is
in the process of restoring its economy again.
The Law of Supply and Demand needs to be restored to give consumers
control over prices. The prices we
pay for goods and services that are governed by the law of supply and demand
are determined by the market. Prices rise when demand is up and supply is low.
When the price of beef goes up, we buy chicken. When the price of soybeans
tripled, farmers everywhere planted more soybeans and the increased supply
resulted in a deep decline in the price of soybeans.
The prices we pay for things that government
provides, like education, healthcare and government are not governed by the
market and have become underperforming and unsustainable. The US was formed to
function as a “free market economy”, but in 1913 the US adopted a “managed
economy”. The 1913 US dollar is now worth 3 cents.
After Smith's 1776 publication, the field of
economics developed rapidly and refinements were made to the supply and
demand law. In 1890, Alfred Marshall's Principles of Economics developed
a supply-and-demand curve that is still used to demonstrate the point
at which the market is in equilibrium.
Winning the Revolutionary War in 1883 netted
the US with room to expand to the Mississippi and made it a good bet for
investors. The Louisiana Purchase in 1803 doubled the expansion. Winning the
Mexican War in 1848 completed the expansion in just 58 years. Banks making
risky loans leads the parade of bad decisions made from 1825 to 2008.
The US landmass in 1790 extended to the
Mississippi River. In 1803, The Louisiana Purchase doubled the landmass to the
Pacific Ocean.
The Panic of 1819-1821 Though the downturn was
driven by global market adjustments in the aftermath of the Napoleonic Wars, its severity was compounded by excessive
speculation in public lands, fueled by the unrestrained issue of
paper money from banks and business concerns.
The Panic of 1825 was a stock
market crash that started in the Bank of England, arising in part out of speculative investments in Latin America, including the imaginary country of Poyais. The crisis was felt most acutely in Britain, where it
precipitated the closing of six London banks and sixty country banks in
England, but was also manifest in the markets of Europe, Latin America, and the
United States. An infusion of gold reserves from the Banque de France saved the Bank of England from complete collapse. The stock market boom became a bubble and banks
caught up in the euphoria made risky loans.
In
the 1830s, assimilated Cherokee farmers had their property seized by the US
government and were marched to Oklahoma to an Indian Reservation. The
government sold the land and 4000 Cherokees died in the march.
The Panic of 1837-1844 was a financial crisis in the United States that touched off a major recession that lasted until the mid-1840s. Profits, prices, and
wages went down while unemployment went up. Pessimism abounded during the time.
The panic had both domestic and foreign origins. Speculative lending practices
in western states, a sharp decline in cotton prices, a collapsing land bubble,
international specie flows, and restrictive lending policies in Great
Britain were all to blame. On May 10, 1837, banks in New York City suspended specie
payments, meaning that they would no longer
redeem commercial
paper in specie at full face value. Despite a brief recovery in 1838, the recession
persisted for approximately seven years. Banks collapsed, businesses failed,
prices declined, and thousands of workers lost their jobs. Unemployment may
have been as high as 25% in some locales. The years 1837 to 1844 were,
generally speaking, years of deflation in wages and prices.
The Mexican War 1846-1848 expanded the US
landmass in the Southwest from 1.7 million square miles to 2.9 million square
miles expanding the US to 3.5 million square miles.
The Panic of 1847 was a minor British
banking crisis associated with the end of the 1840s railway
industry boom and the failure of many non-banks. As of
1840 credit expansion resumed in the United Kingdom and spread throughout
France and the United States. Thousands of miles of railroad track were built
and the stock market entered upon a period of relentless growth which mostly
favored railroad stock. Thus began a speculative movement which lasted until
1846, when economic crisis hit in Great Britain.
The Panic of 1857 was a financial
panic in the United States caused by the declining international economy and over-expansion
of the domestic economy. Because of the interconnectedness of the world economy by the 1850s, the financial crisis
that began in late 1857 was the first worldwide economic crisis.
The adoption of the steam engine in 1820
allowed the creation of railroads to provide more rapid movement of goods and citizens
and increased productivity and safety.
The Industrial Revolution from 1850 to 1900
expanded the US economy and changed the game on standards of living.
The Civil War 1861-1965 restored the United
States and ended slavery.
The Panic of 1866 was an
international financial downturn that accompanied the failure of Overend, Gurney and Company in London, and the corso forzoso abandonment of
the silver
standard in Italy. In Britain the economic impacts are held partially responsible for
public agitation for political reform in the months leading up to the 1867 Reform Act. The crisis led to a sharp rise in unemployment to 8% and a
subsequent fall in wages across the country. Similar to the "knife and
fork" motives of Chartism in the late 1830s and 1840s, the financial pressure on
the British working
class led to rising support for greater
representation of the people.
In 1867,
the US bought Alaska from Russia for $7.2 million expanding the US landmass to
3.8 million square miles. Oil was discovered in Alaska in 1957.
In 1872,
the US established Yellowstone National Park in violation of the US
Constitution.
The Great Depression of British Agriculture occurred
during the late nineteenth century and is usually dated from 1873 to
1896. Contemporaneous with the global Long Depression, Britain's agricultural depression was caused by the
dramatic fall in grain prices that followed the opening up of the American
prairies to cultivation in the 1870s and the advent of cheap transportation
with the rise of steamships. British agriculture did not recover from this depression
until after the Second World War.
The Long Depression was a worldwide
price and economic recession, beginning in 1873 and running either through the spring of 1879, or 1896,
depending on the metrics used. It was the most severe in Europe and the
United States, which had been experiencing strong economic growth fueled by the Second Industrial Revolution in the decade following the American
Civil War.
The Panic of 1901 was the first stock
market crash on the New
York Stock Exchange, caused in part by struggles between E. H. Harriman, Jacob Schiff, and J. P. Morgan/James
J. Hill for the financial control of the Northern Pacific Railway. The
stock cornering was orchestrated by James Stillman and William
Rockefeller's First National City Bank financed
with Standard
Oil money. After reaching a compromise, the
moguls formed the Northern Securities Company. As a result of the panic, thousands of small investors were
ruined.
The Panic of 1907 – also known as
the 1907 Bankers' Panic or Knickerbocker Crisis was a financial crisis that took place in the United States over a three-week
period starting in mid-October, when the New
York Stock Exchange fell almost 50% from its peak the
previous year. Panic occurred, as this was during a time of economic recession, and there were numerous runs on banks and trust companies. The 1907 panic eventually spread throughout the nation when
many state and local banks and businesses entered
bankruptcy. Primary causes of the run included a retraction of market liquidity by a number of New York City banks and a loss of
confidence among depositors, exacerbated by unregulated side bets at bucket shops. The panic
was triggered by the failed attempt in October 1907 to corner
the market on stock of the United Copper
Company. When this bid failed, banks that had lent
money to the cornering scheme suffered runs that later spread to affiliated
banks and trusts, leading a week later to the downfall of the Knickerbocker Trust Company—New York City's third-largest trust.
In 1913, the US established the Federal Reserve
Bank, Income Tax and Inheritance Tax to impose the “Managed Economy”. Also in
1913, the US established the National Park System that now controls 28% of the
US landmass.
recession in the United States and other countries, beginning 14
months after the end of World War I. It lasted from January 1920 to July 1921. The extent
of the deflation was not only large, but large relative to the accompanying
decline in real product.
In 1914,
the US sold military equipment to Britain and France to defend against German
invasion in World War I. The US then entered the War in 1917 and won it in
1918.
In 1918, Russian Communists deposed the
Monarchy and established the USSR 1922-1989.
The Great Depression 1929-1941 included the
drought in the 1930s. The US economy struggled to recover for 12 years.
The Wall Street Crash of 1929, also known
as the Great Crash, was a major stock
market crash that occurred in 1929. It started in
September and ended late in October, when share prices on the New
York Stock Exchange
collapsed.
In
1940, the US sold military equipment to Britain and France to defend against
German invasion in World War II. The US entered the War in 1941 and won it in
1945.
In 1949,
China established the Communist PRC.
In 1950,
the US defended South Korea from invasion by North Korea. A cease fire
reestablished the border between North and South Korea.
High inflation in the 1960s and 1970s doubled
the price of everything in the US. Interest on Mortgage Loans increased from 4%
to 13% in 1983. Taxes remained high and unemployment reached 10%.
The savings and loan crisis of the
1980s and 1990s (commonly dubbed the S&L crisis) was the failure of
1,043 out of the 3,234 savings and loan associations in the United States from 1986 to 1995: the Federal Savings and Loan Insurance Corporation (FSLIC) closed or otherwise resolved 296 institutions
from 1986 to 1989 and the Resolution Trust Corporation (RTC) closed or otherwise resolved 747 institutions
from 1989 to 1995.
In
1991 the Communist USSR was replaced by the Russian Republic. Russia is a multi-ethnic and multi-faith nation.
Orthodox Christianity is Russia's largest religion with 75%
of the population belonging to the Orthodox Christian denomination.
In 1992,
the US approved UN Agenda 21 based on the global warming hoax to begin the
formation of global Communist governance. The NAFTA Trade agreement began the
acceleration of off-shoring US manufacturing. Middle class jobs were decimated
and household incomes declined. Excessive immigration began in 1989 and
continued until 2017.
The Financial Meltdown 2008-2016 began with the
Mortgage Meltdown in 2008. Banks gave home mortgages to unqualified buyers to
comply with US anti-discrimination laws. When the mortgages failed, bank
liquidity froze. The global economy struggled to recover for 8 years.
In 2017,
the US began to reject UN Agenda 21 and global communist governance. Communist
countries were establishing state-owned capitalism. In 2019, the UK voted to
leave the EU.
Comments
The US economy
began to recover from the 2008 Meltdown in 2017 by lowering corporate taxes
from 35% to 21% and income taxes, reducing regulations and immigration, increasing
oil and gas production, reducing the US trade deficit, restoring US middle
class jobs and increasing household incomes.
The US is
encouraging all countries to privatize their failed socialist policies and
attend to lowering the cost of government, expanding reciprocal trade and
repairing their national economies.
Norb
Leahy, Dunwoody GA Tea Party Leader
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