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How Did The Dollar Affect The Economy

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Kyle Eakin From British taxes contributing to the Revolutionary War to the housing collapse in 2008, every major event in the United States can be tied to money in some way. Money has been a catalyst of change over our history with both positive and negative results with the Department of the Treasury naturally being a central factor. The currencies that predate the dollar helped to create the United States as they funded our fight for freedom in multiple wars. The US dollar, a currency created less than 250 years ago, has shaped the United States history and amazingly become the most polarizing and well-known currency in the world economy. Beginning in 1690 each colony had its own currency which led to many issues of exchange and the value of each currency. In 1775 the Continental Congress issued Its own paper currency to help fund the Revolutionary War and to unite the colonies with one currency, though concerns arose with counterfeiting by British in economic warfare and not being tangibly backed. Congress passed a bill to build a mint in Philadelphia in 1786 to better control the money supply. The United States officially adopted a bimetallic standard of silver and gold in 1792 with the silver to …show more content…

A housing bubble was created by banks liberally mortgaging out homes to anyone no matter their credit and bundling mortgages together and selling them to other banks. Because of how they were bundled their credit ratings never reflected the actual risk involved; this practice was unethical but profitable until the system collapsed in 2008 and caused massive losses for both banks and homeowners. The losses were so drastic that Congress voted to bail out several of the banks at the expense of the taxpayers, many of whom were unemployed and facing foreclosure. The economy today is still recovering as interest rates and unemployment continue to return to

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Overall, it was the combination of the desire for money mixed with ignorance towards making quality financial decisions that led to the financial crisis. 2. In the past, to get a mortgage you had to go through a series of steps; list them. Show up at the bank with tax records, pay stubs (to verify your income) and proof that you have enough savings to make a 20% down payment

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George Washington’s foreign policies helped boost the American economy. This is shown through Jay’s Treaty and Pinckney 's Treaty. During the time of Washington 's reign the French Revolution erupted between England and France. England began seizing American ships that were carrying goods to France. To solve this disturbance Washington sent John Jay to England to work out a treaty.

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According to the article The Devil in Devolution, the “devolution revolution” is seen as, “The shift in government’s center of gravity away from Washington and toward the states…” which translate to the return of power from the federal government to the state government. In recent years, the author of the article (Donahue) believes that the states have been given too much power, and the power of the federal government has been declining. The “tragedy of the commons” principle is when an individual abuses a shared resource to the point in which the supply is overwhelmed, and some people are unable to receive the resource. This applies to federalism because the states seem to be usurping all of the “power” from the federal government, so there

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There was a tax on every piece of printed paper used like licences, newspapers, marriage license, and playing cards . The stamp act was made to help get the British out of debt after the French and Indian war. Another turning point was the Tea act Dec 15,1773 a big cause was the Boston massacre where "a taunting mob threw sticks, stones, and snowballs at a frightened group of soldiers guarding the customs-house on king street in Boston" (DOC C). A rule of the tea act was "whoever shall aid,or abet, or in any manner assist in the induction of introduction of tea, from any whatsoever, into this colony, while it is subject, by British act of parliament, to the payment of duty, for the purpose of raising a revenue in American, he shall be deemed

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Though this idea was widely disliked president Washington saw the potential and helped Hamilton get the national bank passed. During the rebellions against the heavy taxations on whiskey and other goods, colonists managed to cause the halt of some courts of justice and they were heard calling out for paper currency or equal distribution of property (Doc G). Hamilton managed to pay off the nation’s debt and create a national bank yet very little changed in the nation’s economic system in that time

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Duane, and Roger B. Taney, until he found a secretary willing to distribute the money from the National Bank to smaller banks, Levi Woodbury. With this, local state banks had all the responsibilities and power of banking; only they could give out loans and invest. But, after irresponsible investments, the banks quickly lost the funds and began the process of the U.S. falling into the Panic of 1837. On top of the bank’s misjudgments, the value of the paper currency was falling due to Jackson’s Specie Circular, an act that made only gold and silver an acceptable currency for land. Such economic instability undermined the people’s faith in the economy and eventually lead to the Panic of 1837, a major financial

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N.p., n.d. Web. 19 Apr. 2017. "The Currency Act." Ushistory.org. Independence Hall Association, n.d. Web.

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1700’s British colonies made up most of America. These colonists generated a lot of money by growing and exporting lumber, fishing, doing work as blacksmiths, and many other jobs. But when the French and Indian War had ended in 1763, Britain was heavily in debt. To pay off all this debt Britain started passing many acts, to make money off of the colonists. There were many different acts which included The Stamp Act of 1765, which required colonists to purchase postage and include the stamps with documents and paper goods.

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Many American colonists were opposed to the Stamp Act, which was established in 1765. Written by Parliament, the Stamp Act was a tax on all sorts of paper products and legal documents - marriage licenses, newspapers, almanacs, advertisements, and playing cards, to name a few. The tax was made when Parliament decided that the colonists needed to help pay off the debt from the most recent war. The French and Indian war, fought in America over the Ohio Valley area, was very expensive. England, after having sent over soldiers to the new world to defend the colonies, was deeply in debt.

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The Mexican-American war altered the United States environmentally, culturally and politically. First, on February 2, 1848, Mexico signed the Treaty of Guadalupe Hidalgo two years post the beginning of the war. The treaty not only achieved President Polk’s goal to achieve California from Mexico but also granted the U.S. over 500,000 square miles of new territory. The new land caused approximately 90,000 spanish speaking, mostly Catholic Mexicans under American jurisdiction. Second, Nativism, a rising anti-catholic and anti-immigrant deemed the Mexicans inferior.

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Currency between each state was not uniform, resulting in unequal amounts of money being exchanged. In addition, Congress did not have the power to tax—British taxes in the past on goods like tea left the colonists with a fear of tariffs. Because the government could not tax, the United States did not have a way to pay off all of its debt, both national, from the war, and foreign. The United States owed a significant amount of money to Europe. Furthermore, lack of funds prevented the government from maintaining a competent military.

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When the long lasted Vietnam war ended in April of 1975, more than five thousands of Americans had been killed. Years after, American still suffered from far-reaching post-war consequences. The Vietnam War has affected the U.S. economically, socially, and politically. First, the war decreased the U.S. economy.

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In 1929, the “bubble” finally burst, and the worst recession in American history began. Soon after the start of the Great Depression, factories shut down, farms foreclosed, unemployment rates skyrocketed, and even some banks went out of business (people could no longer pay back banks for things brought with credit). In this time of great struggle, many Americans turned to Republican President Herbert Hoover and his administration to help rejuvenate the

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In 1929, the U.S. was hit with the worst economic crisis in the history of the country, the Great Depression. The Great Depression left millions of people unemployed and cost millions their life's savings. The Depression lasted for ten long years for the American people. Since the Great Depression ended, people have studied it, trying to figure out what happened that started it all. The problem was, in fact, the poor economic habits of the people at the time, such as speculation, income maldistribution, and overproduction.

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England didn't Like that Americans were using there own money to buy goods the

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