title: Economic history of the United States

text: Before railroads most businesses were run by a sole proprietor or were a partnership. The owners typically ran the daily operations. The railroad industry was the first to adopt modern business management practices in response to the need to operate over vast areas, to maintain continuous long-distance communications, to manage a complex network, to track trains and freight. Railroads hired professional managers and divided work into various corporate departments, and developed the organization diagram.


title: Economic history of the United States

text: Another modern business innovation was vertical integration, by which companies expanded to encompass all stages of a business, from producing the raw materials, processing them into saleable products and selling the finished products. Notable examples occurred in the steel and petroleum industries.


title: Economic history of the United States

text: A dramatic expansion in farming took place. The number of farms tripled from 2.0 million in 1860 to 6.0 million in 1905. The number of people living on farms grew from about 10 million in 1860 to 22 million in 1880 to 31 million in 1905. The value of farms soared from $8.0 billion in 1860 to $30 billion in 1906.


title: Economic history of the United States

text: The federal government issued tracts virtually free to settlers under the Homestead Act of 1862. Even larger numbers of settlers purchased lands at very low interest from the new railroads, which were trying to create markets. The railroads advertised heavily in Europe and brought over, at low fares, hundreds of thousands of farmers from Northern Europe.


title: Economic history of the United States

text: Despite their remarkable progress and general prosperity, 19th-century U.S. farmers experienced recurring cycles of hardship, caused primarily by falling world prices for cotton and wheat.


title: Economic history of the United States

text: Along with the mechanical improvements which greatly increased yield per unit area, the amount of land under cultivation grew rapidly throughout the second half of the century, as the railroads opened up new areas of the West for settlement. The wheat farmers enjoyed abundant output and good years from 1876 to 1881 when bad European harvests kept the world price high. They then suffered from a slump in the 1880s when conditions in Europe improved. The farther west the settlers went, the more dependent they became on the monopolistic railroads to move their goods to market, and the more inclined they were to protest, as in the Populist movement of the 1890s. Wheat farmers blamed local grain elevator owners (who purchased their crop), railroads and eastern bankers for the low prices.


title: Economic history of the United States

text: Sales of various types of horse pulled harvesting machines increased dramatically between the Civil war and the end of the century. Harvesting machine improvements included automatic rakers, which eliminated the manual raker, allowing operation by a single man, and combination harvester and binders.


title: Economic history of the United States

text: To modernize traditional agriculture reformers founded the Grange movement, in 1867. The Granges focused initially on social activities to counter the isolation most farm families experienced. Women's participation was actively encouraged. Spurred by the Panic of 1873, the Grange soon grew to 20,000 chapters and 1.5 million members. The Granges set up their own marketing systems, stores, processing plants, factories and cooperatives. Most went bankrupt. The movement also enjoyed some political success during the 1870s. A few Midwestern states passed "Granger Laws", limiting railroad and warehouse fees.


title: Economic history of the United States

text: Federal land grants helped each state create an agricultural college and a network of extension agents who demonstrated modern techniques to farmers. Wheat and cotton farmers in the 1890s supported the Populist movement, but failed in their demands for free silver and inflation. Instead the 1896 election committed the nation to the gold standard and a program of sustained industrialization. Farmers in the Midwest and East gave verbal support to the Populists. They focused on the nearby urban markets, rather than on highly fluctuating European markets for weaving cotton.


title: Economic history of the United States

text: In the 1850s an advance in lighting was the use of kerosene lamps with glass chimneys, which produced a good quality light at a relatively affordable price. Kerosene lighting effectively extended the day and made it easier to read at night. An industry developed to produce coal oil, as kerosene was then called. Kerosene was also being distilled from Pennsylvania crude oil by Samuel Kier.


title: Economic history of the United States

text: George Bissell paid a visit to Dartmouth College, which he had attended, and saw a sample of "rock oil" from Pennsylvania. Suspecting that the oil may have potential as an illuminant and lubricant, he organized an investor group. In 1853 Bissell's group, which became the Pennsylvania Rock Oil Co., hired Yale chemistry professor Benjamin Silliman, Jr. to perform an analysis of "rock oil". Silliman's report of April 1864 stated that "rock oil" could yield an excellent illuminating oil. However, there was no economical means for producing sufficient commercial quantities of oil. Bissell had a chance insight when he saw a picture of oil derricks used to produce an oil based patent medicine obtained as a byproduct of a brine well.


title: Economic history of the United States

text: Following a shareholder disagreement, Bissell and fellow investor Jonathan Eveleth investor split with Pennsylvania Rock Oil Co. and formed Seneca Oil in 1858. Edwin Drake, a shareholder, was hired by the company to drill for oil. The site chosen to drill the well was on Oil Creek near Titusville, PA, where a water well was producing oil. Drake chose to use brine well drilling technology based on the technique used in China since ancient times that reached the West in the late 1820s, except that Drake used iron cable, an iron well casing and a steam engine. The Drake Well hit oil at a depth of 69.55 feet on August 27, 1858, starting a drilling boom in the region.


title: Economic history of the United States

text: Among the numerous refineries that were started were several along a new rail link to Cleveland, Ohio, where John D. Rockefeller and his partner Maurice Clark owned a grocery produce shipping business. Rockefeller and Clark also got into the refining business, and in 1865 the partners decided to hold a private auction between the two, with Rockefeller being the successful bidder. The refining industry was intensely competitive, and by 1869 there was three times the capacity needed, a situation which lasted many years, with the number of refineries reaching 6000.


title: Economic history of the United States

text: In 1870 John D. Rockefeller, his brother William Rockefeller, Henry Flagler, Oliver Burr Jennings and silent partner Stephen V. Harkness formed Standard Oil. John D. Rockefeller was the master planner and organizer of the systematic plan to form combinations with or acquire competitors and enter all phases of the oil industry from production to transportation, refining and distribution, a concept called vertical integration. Standard Oil sought every possible advantage over its competitors. One method was using Standard's high shipping volume to secure discounts and drawbacks (payments from railroads for transporting competitors products) from railroads. By 1879 Standard oil controlled 90% of U.S. refining capacity. Producers in the Pennsylvania oil region tried to counter Standard Oil's transportation arrangements by building the first long distance pipeline, the 110 mile long Tidewater Pipeline to Williamsport, Pennsylvania, which was on the Reading Railroad. Standard Oil fought back by building four pipelines of its own. Standard continued to monopolize the oil industry in the U.S. until it was broken up by the 1911 U.S. Supreme Court case Standard Oil Co. of New Jersey v. United States.


title: Economic history of the United States

text: Efficient gas mantles and electric lighting were eroding the illuminating oil market beginning in the 1880s; however a previously low value byproduct of refining was gasoline, which more than offset the role of kerosene in the early 20th century.


title: Economic history of the United States

text: Large iron ore mines opened in the Lake Superior region of the upper Midwest. Steel mills thrived in places where these coal and iron ore could be brought together to produce steel. Large copper and silver mines opened, followed by lead mines and cement factories.


title: Economic history of the United States

text: The recession of 1869 resulted from a stock market panic, which lowered stock prices 20% and briefly cut wheat prices in half. It was one of the shortest and mildest recessions in American economic history.


title: Economic history of the United States

text: Panic of 1873 created one of the worst and longest depressions in American history, seriously affecting every aspect of the economy and bringing the railroad expansion to a halt. The New York Stock Exchange closed for ten days. Of the country's 364 railroads, 89 went bankrupt, a total of 18,000 businesses failed between 1873 and 1875, unemployment reached 14% by 1876, during a time which became known in Britain as the Long Depression. Contemporary economist David Ames Wells argued against calling it a depression in the U.S. (which then meant depressed prices) because output rose dramatically.


title: Economic history of the United States

text: The end of the Gilded Age coincided with the Panic of 1893, a deep depression that lasted until 1897. Wheat and cotton farmers in the West and South were especially hard hit, and moved toward radicalism. President Grover Cleveland was forced to ask the Wall Street bankers to help keep the Treasury liquid. Agrarian spokesmen William Jennings Bryan called for an inflationary policy of using cheap silver to effectively replace expensive gold. Bryan lost in a major political realignment in favor of the conservative pro-gold Republicans in the election of 1896.


title: Economic history of the United States

text: Europe had a substantial amount of water supply and sewer infrastructure installed by the mid 1870s. In 1880 only 0.3% of urban households had filtered water, with this figure rising to 1.5% in 1890 and 6.3% in 1900.


title: Economic history of the United States

text: The American labor movement began with the first significant labor union, the Knights of Labor in 1869. The Knights collapsed in the 1880s and were displaced by strong international unions that banded together as the American Federation of Labor under Samuel Gompers. Rejecting socialism, the AFL unions negotiated with owners for higher wages and better working conditions. Union growth was slow until 1900, then grew to a peak during World War I.


title: Economic history of the United States

text: Concern over railroads' unfair practices, such as freight rates favoring certain shippers, led to the Interstate Commerce Act of 1887 which created the nation's first regulatory agency, the Interstate Commerce Commission.


title: Economic history of the United States

text: From the Civil War to 1913, the United States had a high tariff regime, as did most countries with the exception of Great Britain, which clung to free trade.


title: Economic history of the United States

text: Most Democrats wanted a lower tariff, but failed to make much difference. The Republican Party stressed the goal of rapid economic growth, as well as high wage rates for industrial workers. Indeed the high American wage rates attracted large numbers of skilled European workers, who filled the upper ranks of the American working class. According to Benjamin O. Fordham the United States: Protectionism had several important consequences for American foreign policy on both economic and security issues. It led to a focus on less developed areas of the world that would not export manufactured goods to the United States instead of on wealthier European markets. It limited the tactics available for promoting American exports, forcing policymakers to seek exclusive bilateral agreements or unilateral concessions from trading partners instead of multilateral arrangements. It inhibited political cooperation with other major powers and implied an aggressive posture toward these states.


title: Economic history of the United States

text: The period from 1890 to 1910 was one of rapid economic growth of above 4%, in part due to rapid population growth. However, a sharp break in the growth rate to around 2.8% occurred from 1910 to 1929. Economists are uncertain what combination of supply and demand factors caused the break, but productivity growth was strong, enabling the labor cost per unit of output to decline from 1910 to 1929. The growth rate in hours worked fell 57% compared to the decline in the growth rate of output of 27%. It is generally accepted that the new technologies and more efficient business methods permanently shifted the supply and demand relationship for labor, with labor being in surplus (except during both world wars when the economy was engaged in war-time production and millions of men served in the armed forces). The technologies that became widespread after 1910, such as electrification, internal combustion powered transportation and mass production, were capital saving. Total non-residential fixed business fell after 1910 due to the fall of investment in structures.


title: Economic history of the United States

text: Two of the most transformative technologies of the century were widely introduced during the early decades: electrification, powered by high pressure boilers and steam turbines and automobiles and trucks powered by the internal combustion engine.


title: Economic history of the United States

text: Standardization was urged by the Department of Commerce for consumer goods such as bedspreads and screws. A simplified standardization program was issued during World War I.


title: Economic history of the United States

text: Electrification was one of the most important drivers of economic growth in the early 20th century. The revolutionary design of electric powered factories caused the period of the highest productivity growth in manufacturing. There was large growth in the electric utility industry and the productivity growth of electric utilities was high as well.


title: Economic history of the United States

text: At the turn of the 20th century electricity was used primarily for lighting and most electric companies did not provide daytime service. Electric motors that were used in daytime, such as the DC motors that powered street railways, helped balance the load, and many street railways generated their own electricity and also operated as electric utilities. The AC motor, developed in the 1890s, was ideal for industrial and commercial power and greatly increased the demand for electricity, particular during daytime.


title: Economic history of the United States

text: Electrification in the U.S. started in industry around 1900, and by 1930 about 80% of power used in industry was electric. Electric utilities with central generating stations using steam turbines greatly lowered the cost of power, with businesses and houses in cities becoming electrified. In 1900 only 3% of households had electricity, increasing to 30% by 1930. By 1940 almost all urban households had electricity. Electrical appliances such as irons, cooking appliances and washing machines were slowly adopted by households. Household mechanical refrigerators were introduced in 1919 but were in only about 8% of households by 1930, mainly because of their high cost.


title: Economic history of the United States

text: The electrical power industry had high productivity growth. Many large central power stations, equipped with high pressure boilers and steam turbine generators began being built after 1913. These central stations were designed for efficient handling of coal from the layout of the rail yards to the conveyor systems. They were also much more fuel efficient, lowering the amount of fuel per kilowatt-hour of electricity to a small fraction of what it had been. In 1900 it took 7 lbs coal to generate one kilowatt hour. In 1960 it took 0.9 lb/kw hr.


title: Economic history of the United States

text: Rapid economic growth in the early decades of the 20th century were largely due to productivity growth in manufacturing.


title: Economic history of the United States

text: Factory electrification revolutionized manufacturing. Unit drive, which means using a single electric motor for powering a single machine, eliminated line shafts previously used to transmit power from a small number of steam engines or hydraulic turbines. Line shafts created constraints on building arrangement that impeded the efficient flow of materials because they presented traffic barriers and required multi-story buildings for economy. It was not uncommon for large manufacturing sites to have many miles of line shafts. Electric motors were much more economical to operate than steam engines in terms of energy efficiency and operator attention. Electric motors were also lower in capital cost.


title: Economic history of the United States

text: Frederick W. Taylor was the best known pioneer in the field of scientific management in the late 19th century, carefully timing and plotting the functions of various workers and then devising new, more efficient ways for them to do their jobs. Ford Motor Co. used techniques of scientific management although Henry Ford claimed not to know of Taylor's system. Ford Motor used every practical means to reduce the effort and movement of workers in order to reduce the time involved in making parts, moving parts and assembling parts into automobiles. Ford used electric powered factories and in 1913 Ford introduced the assembly line, a step in the process that became known as "mass production". The price of a Ford Model T fell from $900 in 1908–9 to $360 in 1916, despite the fact that wages doubled to $5 per day in 1914. Production grew from 13,840 in 1909 to 132,702 in 1916. Productivity for this period, measured in output of Model T's per worker, rose 150%.


title: Economic history of the United States

text: Ford offered a very generous wage—$5 a day—to his workers, arguing that a mass production enterprise could not survive if average workers could not buy the goods. However, Ford expanded the company's Sociological Department to monitor his workers and ensure that they did not spend their newfound bounty on "vice and cheap thrills".


title: Economic history of the United States

text: Electric street railways developed into a major mode of transportation, and electric inter-urban service connected many cities in the Northeast and Midwest. Electric street railways also carried freight, which was important before trucks became widely introduced. The widespread adoption of the automobile and motor bus halted the expansion of the electric street railways during the 1920s.


title: Economic history of the United States

text: At the beginning of the 20th century the railroad network had over-expanded with many miles of unprofitable routes. In 1906 Congress gave the Interstate Commerce Commission the power to regulate freight rates and the industry was unable to increase revenue enough to cover rising costs. By 1916, the peak year of track mileage, one-sixth of the nation's railroad trackage was in bankruptcy.


title: Economic history of the United States

text: The railroads proved inadequate to handle the increased freight volume created by World War I. There were major traffic jams in the system and critical supplies were experiencing delays. In December 1917 the railroads were taken over by the government and put under control of the United States Railroad Administration (USRA). The USRA ordered 1,930 new standardized steam locomotives and over 100,000 railcars. The USRA's control over the railroads ended in March 1920.


title: Economic history of the United States

text: By the dawn of the 20th century, automobiles had begun to replace horse-drawn carriages. Numerous companies were building cars, but car manufacturing was challenging. Consequently, prices were high and production was low. Mass production techniques of the mid 1910s brought down the cost of automobiles and sales grew dramatically. By 1919 automobile registrations were 6.6 million and truck registrations were 898,000.


title: Economic history of the United States

text: Replacing horses with cars and trucks eliminated enormous quantities of horse manure and urine from city streets, greatly reducing the labor for street cleaning and also improving sanitation and living conditions. Reducing the number of horses for transportation freed up between one- sixth and one-quarter of all farm land.


title: Economic history of the United States

text: In 1900 there were only 200 miles of paved roads outside of cities in the U.S. By the late 1920s automobiles were becoming common, but there were few highways connecting cities. The Federal road building program ended in 1818, leaving states to build roads until the Federal Road act of 1916. A national highway system was agreed on in 1926, when an interstate program (not to be confused with the Dwight D. Eisenhower National System of Interstate and Defense Highways) began, there were 23.1 million cars and 3.5 million trucks. The system was nearly complete when the U. S. entered World War II in December 1941.


title: Economic history of the United States

text: At the turn of the century approximately one-third of urban households had running water; however, most of it was untreated and carried disease causing microorganisms. The widespread building of water treatment plants and piping of water to and sewage from urban households occurred in the early decades of the century. The number of urban households supplied with running filtered water increased from 6.3% in 1900 to 25% in 1910 and 42% in 1925. In 1908 the Jersey City Water Works in New Jersey was the first to sterilize water using sodium hypochlorite (chlorine bleach). Chlorination of drinking water became common in urban water supplies by the 1930s and contributed to a sharp reduction in many diseases such as hepatitis A, typhoid fever, cholera and dysentery.


title: Economic history of the United States

text: Internal combustion powered tractors appeared on farms in the mid 1910s and farmers began using automobiles and trucks to haul produce. By 1924 tractors and trucks on farms numbered 450,000 and 370,000 respectively. Combined harvester-threshers reduced labor cost 85% compared to using binders and stationary threshers. Farms have decreased in the United States. The number of farms in the U.S have decreased from 7 million in the 1930s to just a little over 2 million in 2000. The rate of decline was most rapid in the 1950s and 1960s. The reason for this was because of the increased innovation in farms where new technology was able to create more product which resulted in the need for fewer farms. Also during the 1950s–1960s people moved from the bigger cities and farms to more suburban areas so these smaller farms would be sold and people would move closer to cities. People also could not afford the new technologies to help them farm so bigger farms would be very successful during this time, while smaller farms would close.


title: Economic history of the United States

text: A major economic downturn in 1906 ended the expansion from the late 1890s. This was followed by the Panic of 1907. The Panic of 1907 was a factor in the establishment of the Federal Reserve Bank in 1913.


title: Economic history of the United States

text: The mild inflation of the 1890s, attributed to the rising gold supply from mining, continued until World War I, at which time inflation rose sharply with wartime shortages including labor shortages. Following the war the rate of inflation fell, but prices remained above the prewar level.


title: Economic history of the United States

text: The U.S. economy prospered during World War I, partly due to sales of war goods to Europe. The stock market had its best year in history in 1916. The U.S. gold reserves doubled between 1913 and 1918, causing the price level to rise. Interest rates had been held low to minimize interest on war bonds, but after the final war bonds were sold in 1919, the Federal Reserve raised the discount rate from 4% to 6%. Interest rates rose and the money supply contracted. The economy entered the Depression of 1920-21, which was a sharp decline financially. By 1923, the economy had returned to full employment.


title: Economic history of the United States

text: A debt-fueled boom developed following the war. Jerome (1934) gives an unattributed quote about finance conditions that allowed the great industrial expansion of the post World War I period:


title: Economic history of the United States

text: Probably never before in this country had such a volume of funds been available at such low rates for such a long period.


title: Economic history of the United States

text: There was also a real estate and housing bubble in the 1920s, especially in Florida, which burst in 1925. Alvin Hansen stated that housing construction during the 1920s decade exceeded population growth by 25%. See also:Florida land boom of the 1920s


title: Economic history of the United States

text: Debt reached unsustainable levels. Speculation in stocks drove prices up to unprecedented valuation levels. The stock market crashed in late October 1929.


title: Economic history of the United States

text: Systematic regulation of major sectors of the economy and society was a priority of the federal government in this era. In the 19th century the federal government was not heavily involved in the private sector, except in the areas of land sales and transportation. In general, the concept of laissez-faire prevailes. It was a doctrine opposing government interference in the economy except to maintain law and order. This attitude started to change during the latter part of the 19th century, when small business, farm, and labor movements began asking the government to intercede on their behalf.


title: Economic history of the United States

text: By 1900, a middle class had developed that was leery of both the business elite and the somewhat radical political movements of farmers and laborers in the Midwest and West. Known as Progressives, these people favored government regulation of business practices to, in their minds, ensure competition and free enterprise. Congress enacted a law regulating railroads in 1887 (the Interstate Commerce Act), and one preventing large firms from controlling a single industry in 1890 (the Sherman Antitrust Act). These laws were not rigorously enforced, however, until the years between 1900 and 1920, when Republican President Theodore Roosevelt (1901–1909), Democrat President Woodrow Wilson (1913–1921), and others sympathetic to the views of the Progressives came to power. Many of today's U.S. regulatory agencies were created during these years, including the Interstate Commerce Commission and the Federal Trade Commission. Ida M. Tarbell wrote a series of articles against the Standard Oil monopoly. The series helped pave the way for the breakup of the monopoly.


title: Economic history of the United States

text: Muckrakers were journalists who encouraged readers to demand more regulation of business. Upton Sinclair's "The Jungle" (1906) showed America the horrors of the Chicago Union Stock Yards, a giant complex of meat processing that developed in the 1870s. The federal government responded to Sinclair's book with the new regulatory Food and Drug Administration.


title: Economic history of the United States

text: When Democrat Woodrow Wilson was elected president with a Democrat controlled Congress in 1912 he implemented a series of progressive policies. In 1913, the Sixteenth Amendment was ratified, and the income tax was instituted in the United States. Wilson resolved the longstanding debates over tariffs and antitrust, and created the Federal Reserve, a complex business-government partnership that to this day dominates the financial world.


title: Economic history of the United States

text: The Pure Food and Drug Act of 1906 was the first of a series of legislation that led to the establishment of the Food and Drug Administration (FDA). Another such act passed the same year was the Federal Meat Inspection Act. The new laws helped the large packers, and hurt small operations that lacked economy of scale or quality controls.


title: Economic history of the United States

text: The Sixteenth Amendment to the United States Constitution, which allowed the Federal Government to tax all income, was adopted in 1913. Starting small, the tax shot us pin 1917 to pay for the war, then declined in the 1920s.


title: Economic history of the United States

text: The Emergency Quota Act (1921) established a quota system on immigrants by country of origin, with the maximum number of annual immigrants from a country limited to 3% of the number of that national background living in the U.S. according to the 1910 United States Census. The Immigration Act of 1924 reduced the quota from 3% to 2% and added additional restrictions on certain nationalities.


title: Economic history of the United States

text: The World War involved a massive mobilization of money, taxes, and banking resources to pay for the American war effort and, through government-to-government loans, most of the Allied war effort as well.


title: Economic history of the United States

text: Under Republican President Warren G. Harding, who called for normalcy and an end to high wartime taxes, Secretary of the Treasury Andrew Mellon raised the tariff, cut marginal tax rates and used the large surplus to reduce the federal debt by about a third from 1920 to 1930. Secretary of Commerce Herbert Hoover worked to introduce efficiency, by regulating business practices. This period of prosperity, along with the culture of the time, was known as the Roaring Twenties. The rapid growth of the automobile industry stimulated industries such as oil, glass, and road-building. Tourism soared and consumers with cars had a much wider radius for their shopping. Small cities prospered, and large cities had their best decade ever, with a boom in construction of offices, factories and homes. The new electric power industry transformed both business and everyday life. Telephones and electricity spread to the countryside, but farmers never recovered from the wartime bubble in land prices. Millions migrated to nearby cities. However, in October 1929, the Stock market crashed and banks began to fail in the Wall Street Crash of 1929.


title: Economic history of the United States

text: The early decades of the 20th century were remarkable for the improvements of the quality of life in the U.S. The quality of housing improved, with houses offering better protection against cold. Floor space per occupant increased. Sanitation was greatly improved by the building of water supply and sewage systems, plus the treatment of drinking water by filtration and chlorination. The change over to internal combustion took horses off the streets and eliminated horse manure and urine and the flies they attracted.


title: Economic history of the United States

text: Federal regulation of food products and processing, including government inspection of meat processing plants helped lower the incidence of food related illness and death.


title: Economic history of the United States

text: Infant mortality, which had been declining dramatically in the last quarter of the 19th century, continued to decline.


title: Economic history of the United States

text: The workweek, which averaged 53 hours in 1900, continued to decline. The burden of household chores lessened considerably. Hauling water and firewood into the home every day was no longer necessary for an increasing number of households.


title: Economic history of the United States

text: Electric light was far less expensive and higher quality than kerosene lamp light. Electric light also eliminated smoke and fumes and reduced the fire hazard.


title: Economic history of the United States

text: Beginning in the 1880s but especially by the 1920s, some large non-union corporations such as Kodak, Sears, and IBM, adopted the philosophy of paternalistic welfare capitalism. In this system, workers are considered an important stakeholder alongside owners and customers. In return for loyalty to the company, workers get long-term job security, health care, defined benefit pension plans, and other perks. Welfare capitalism was seen as good for society, but also for the economic interests of the company as a way to prevent unionization, government regulation, and socialism or Communism, which became a major concern in the 1910s. By the 1980s, the philosophy had declined in popularity in favor of maximizing shareholder value at the expense of workers, and defined contribution plans such as 401(k)s, replaced guaranteed pensions.


title: Economic history of the United States

text: Despite the Great Depression and World War II, the middle decades of the 20th century were among the highest for productivity growth.


title: Economic history of the United States

text: The research developed through informal cooperation between U.S. industry and academia grew rapidly and by the late 1930s exceeded the size of that taking place in Britain (although the quality of U.S. research was not yet on par with British and German research at the time).


title: Economic history of the United States

text: Productivity growth in manufacturing slowed from the electrification era of the early century, but remained moderate. Automation of factories became widespread during the middle decades as industry invested in newly developed instruments and controls that allowed fewer workers to operate vast factories, refineries and chemical plants.


title: Economic history of the United States

text: Following the Wall Street Crash of 1929, the worldwide economy plunged into the Great Depression. The U.S. money supply began to contract by one-third. The protectionist Smoot–Hawley Tariff Act incited retaliation from Canada, Britain, Germany and other trading partners. Congress, in 1932, worried about the rapidly growing deficit and national debt, and raised income tax rates. Economists generally agree that these measures deepened an already serious crisis. By 1932, the unemployment rate was 25%. Conditions were worse in heavy industry, lumbering, export agriculture (cotton, wheat, tobacco), and mining. Conditions were not quite as bad in white collar sectors and in light manufacturing.


title: Economic history of the United States

text: Franklin Delano Roosevelt was elected President in 1932 without a specific program. He relied on a highly eclectic group of advisors who patched together many programs, known as the New Deal.


title: Economic history of the United States

text: Government spending increased from 8.0% of GNP under Herber Hoover in 1932 to 10.2% of GNP in 1936. Franklin D. Roosevelt balanced the "regular" budget the emergency budget was funded by debt, which increased from 33.6% of GNP in 1932 to 40.9% in 1936. Deficit spending had been recommended by some economists, most notably the Briton John Maynard Keynes. Roosevelt met Keynes but did not pay attention to his recommendations. After a meeting with Keynes, who kept drawing diagrams, Roosevelt remarked that "He must be a mathematician rather than a political economist". John Keynes' approach to the Great Depression could have been a solution. His method was to keep the feds spending as much as they could even on random purchases but the money had to keep moving. It is believed that if America went through with John Keynes plan the Great Depression could have been avoided entirely. The Feds started to spend more when President Roosevelt came into office as the federal government doubled income tax rates in 1932. Total government tax revenues as a percentage of GDP shot up from 10.8% in 1929 to 16.6% in 1933. Higher tax rates tended to reduce consumption and aggregate demand. Spending would go up and America would get out of the great depression when World War II happened after Japan’s attack on American forces in Pearl Harbor in December 1941 led to much sharper increases in government purchases, and the economy pushed quickly into an inflationary gap.


title: Economic history of the United States

text: In 1929–33 the economy was destabilized by bank failures. The initial reasons were substantial losses in investment banking, followed by bank runs. Bank runs occurred when a large number of customers lost confidence in their deposits (which were not insured) and rushed to withdraw their deposits. Runs destabilized many banks to the point where they faced bankruptcy. Between 1929 and 1933 40% of all banks (9,490 out of 23,697 banks) went bankrupt. Much of the Great Depression's economic damage was caused directly by bank runs.


title: Economic history of the United States

text: Hoover had already considered a "bank holiday" to prevent further bank runs, but rejected the idea because he was afraid to trip a panic. Roosevelt acted as soon as he took office; he closed all the banks in the country and kept them all closed until he could pass new legislation. On March 9, Roosevelt sent to Congress the Emergency Banking Act, drafted in large part by Hoover's top advisors. The act was passed and signed into law the same day. It provided for a system of reopening sound banks under Treasury supervision, with federal loans available if needed. Three-quarters of the banks in the Federal Reserve System reopened within the next three days. Billions of dollars in hoarded currency and gold flowed back into them within a month, thus stabilizing the banking system. By the end of 1933, 4,004 small local banks were permanently closed and merged into larger banks. Their deposits totaled $3.6 billion; depositors lost a total of $540 million, and eventually received on average 85 cents on the dollar of their deposits; it is a common myth that they received nothing back. The Glass–Steagall Act limited commercial bank securities activities and affiliations between commercial banks and securities firms to regulate speculations. It also established the Federal Deposit Insurance Corporation (FDIC), which insured deposits for up to $250,000, ending the risk of runs on banks.


title: Economic history of the United States

text: Unemployment reached 25 percent in the worst days of 1932–33, but it was unevenly distributed. Job losses were less severe among women than men, among workers in nondurable industries (such as food and clothing), in services and sales, and in government jobs. The least skilled inner city men had much higher unemployment rates, as did young people who had a hard time getting their first job, and men over the age of 45 who if they lost their job would seldom find another one because employers had their choice of younger men. Millions were hired in the Great Depression, but men with weaker credentials were never hired, and fell into a long-term unemployment trap. The migration that brought millions of farmers and townspeople to the bigger cities in the 1920s suddenly reversed itself, as unemployment made the cities unattractive, and the network of kinfolk and more ample food supplies made it wise for many to go back.


title: Economic history of the United States

text: City governments in 1930–31 tried to meet the depression by expanding public works projects, as president Herbert Hoover strongly encouraged. However tax revenues were plunging, and the cities as well as private relief agencies were totally overwhelmed by 1931 men were unable to provide significant additional relief. They fell back on the cheapest possible relief, soup kitchens which provided free meals for anyone who showed up. After 1933 new sales taxes and infusions of federal money helped relieve the fiscal distress of the cities, but the budgets did not fully recover until 1941.


title: Economic history of the United States

text: The federal programs launched by Hoover and greatly expanded by president Roosevelt's New Deal used massive construction projects to try to jump start the economy and solve the unemployment crisis. The alphabet agencies ERA, CCC, FERA, WPA and PWA built and repaired the public infrastructure in dramatic fashion, but did little to foster the recovery of the private sector. FERA, CCC, and especially WPA focused on providing unskilled jobs for long-term unemployed men.


title: Economic history of the United States

text: The extent to which the spending for relief and public works provided a sufficient stimulus to revive the U.S. economy, or whether it harmed the economy, is also debated. If one defines economic health entirely by the gross domestic product, the U.S. had gotten back on track by 1934, and made a full recovery by 1936, but as Roosevelt said, one third of the nation was ill fed, ill-housed and ill-clothed. See Chart 3. GNP was 34% higher in 1936 than 1932, and 58% higher in 1940 on the eve of war. The economy grew 58% from 1932 to 1940 in 8 years of peacetime, and then grew another 56% from 1940 to 1945 in 5 years of wartime. The unemployment rate fell from 25.2% in 1932 to 13.9% in 1940 when the draft started. During the war the economy operated under so many different conditions that comparison is impossible with peacetime, such as massive spending, price controls, bond campaigns, controls over raw materials, prohibitions on new housing and new automobiles, rationing, guaranteed cost-plus profits, subsidized wages, and the draft of 12 million soldiers.


title: Economic history of the United States

text: In 1995 economist Robert Whaples stated that measuring the effect of the New Deal remains a thorny issue for economists because it is so difficult to measure the effects it had on the country. A survey of academic specialists by Whaples showed that in regards to the statement "The New Deal lengthened and deepened the Great Depression", 27% generally agreed, 22% agreed but with provisos, and 51% disagreed. Among professional historians, 6% agreed, 21% agreed with provisos, and 74% disagreed. However, economist Eric Rauchway of the University of California stated "very few people disapprove of most of the New Deal reforms", which include Social Security, the Securities and Exchange Commission, the Federal Deposit Insurance Corp., and Fannie Mae. Regardless, unemployment peaked in 1932 at 25% and was reduced to 13.9% by 1940.


title: Economic history of the United States

text: As Broadus Mitchell summarized, "Most indexes worsened until the summer of 1932, which may be called the low point of the depression economically and psychologically". Economic indicators show the American economy declined until February 1933. After Roosevelt took office, there began a steady, sharp upward recovery that persisted until the brief Recession of 1937–1938 (see graph) after which they continued their upward climb. Thus the Federal Reserve Index of Industrial Production bottomed at 52.8 on July 1, 1932, and was practically unchanged at 54.3 on March 1, 1933; however by July 1, 1933, it had climbed to 85.5 (with 1935–39 = 100, and for comparison 2005 = 1,342).


title: Economic history of the United States

text: The studies find that public works and relief spending had state income multipliers of around one, increased consumption activity, attracted internal migration, reduced crime rates, and lowered several types of mortality. The farm programs typically aided large farm owners but eliminated opportunities for share croppers, tenants, and farm workers. The Home Owners' Loan Corporation's purchases and refinancing of troubled mortgages staved off drops in housing prices and home ownership rates at relatively low ex post cost to taxpayers. The Reconstruction Finance Corporation's loans to banks and railroads appear to have had little positive impact, although the banks were aided when the RFC took ownership stakes.


title: Economic history of the United States

text: Unemployment dropped to 2%, relief programs largely ended, and the industrial economy grew rapidly to new heights as millions of people moved to new jobs in war centers, and 16 million men and 300,000 women were drafted or volunteered for military service.


title: Economic history of the United States

text: All economic sectors grew during the war. Farm output went from an index (by volume) of 106 in 1939 to 128 in 1943. Coal output went from 446 million tons in 1939 to 651 in 1943; oil from 1.3 billion barrels to 1.5 billion. Manufacturing output doubled, from a volume index of 109 in 1939 to 239 in 1943. Railroads strained to move it all to market, going from an output of 13.6 billion loaded car miles in 1939 to 23.3 in 1943.


title: Economic history of the United States

text: The War Production Board coordinated the nation's productive capabilities so that military priorities would be met. Converted consumer-products plants filled many military orders. Automakers built tanks and aircraft, for example, making the United States the "arsenal of democracy". In an effort to prevent rising national income and scarce consumer products from causing inflation, the newly created Office of Price Administration rationed and set prices for consumer items ranging from sugar to meat, clothing and gasoline, and otherwise tried to restrain price increases. It also set rent in war centers.


title: Economic history of the United States

text: Six million women took jobs in manufacturing and production; most were newly created temporary jobs in munitions. Some were replacing men away in the military. These working women were symbolized by the fictional character of Rosie the Riveter. After the war many women returned to household work as men returned from military service. The nation turned to the suburbs, as a pent-up demand for new housing was finally unleashed.


title: Economic history of the United States

text: By 1940 nearly 100% of urban homes had electricity, 80% had indoor flush toilets, 73% had gas heating or cooking, 58% central heating, 56% had mechanical refrigerators.


title: Economic history of the United States

text: The period from the end of World War II to the early 1970s was a golden era of economic growth. $200 billion in war bonds matured, and the G.I. Bill financed a well-educated workforce. The middle class swelled, as did GDP and productivity. This growth was distributed fairly evenly across the economic classes though not race, which some attribute to the strength of labor unions in this period—labor union membership peaked historically in the U.S. during the 1950s, in the midst of this massive economic growth. Much of the growth came from the movement of low income farm workers into better paying jobs in the towns and cities—a process largely completed by 1960.


title: Economic history of the United States

text: Congress created the Council of Economic Advisors, to promote high employment, high profits and low inflation. The Eisenhower administration (1953–1961) supported an activist contracyclical approach that helped to establish Keynesianism as a bipartisan economic policy for the nation. Especially important in formulating the CEA response to the recession—accelerating public works programs, easing credit, and reducing taxes—were Arthur F. Burns and Neil H. Jacoby. "I am now a Keynesian in economics", proclaimed Republican President Richard Nixon in 1969.


title: Economic history of the United States

text: Although this period brought economic expansion to the country as a whole, it was not recession proof. The recessions of 1945, 1949, 1953, 1958, and 1960 saw a drastic decline in GDP.


title: Economic history of the United States

text: The "Baby Boom" saw a dramatic increase in fertility in the period 1942–1957; it was caused by delayed marriages and childbearing during depression years, a surge in prosperity, a demand for suburban single-family homes (as opposed to inner city apartments) and new optimism about the future. The boom crested about 1957, then slowly declined.


title: Economic history of the United States

text: Ammonia from plants built during World War II to make explosives became available for making fertilizers, leading to a permanent decline in real fertilizer prices. The early 1950s was the peak period for tractor sales in the U.S. as the few remaining horses and mules were phased out. The horsepower of farm machinery underwent a large expansion. A successful cotton picking machine was introduced in 1949. The machine could do the work of 50 men picking by hand.


title: Economic history of the United States

text: Research on plant breeding produced varieties of grain crops that could produce high yields with heavy fertilizer input. This resulted in the Green revolution, beginning in the 1940s. By the century's end yields of corn (maize) rose by a factor of over four. Wheat and soybean yields also rose significantly.


title: Economic history of the United States

text: The New Deal era farm programs were continued into the 1940s and 1950s, with the goal of supporting the prices received by farmers. Typical programs involved farm loans, commodity subsidies, and price supports. The rapid decline in the farm population led to a smaller voice in Congress. So the well-organized Farm Bureau and other lobbyists, worked in the 1970s to appeal to urban Congressman through food stamp programs for the poor. By 2000, the food stamp program was the largest component of the farm bill. In 2010, the Tea Party movement brought in many Republicans committed to cutting all federal subsidies, including those in agriculture. Meanwhile, urban Democrats strongly opposed reductions, pointing to the severe hardships caused by the 2008–10 economic recession. The Agricultural Act of 2014 saw many rural Republican Congressman voting against the program despite its support from farmers; it passed with urban support.


title: Economic history of the United States

text: Air transport was a major beneficiary of the war. The United States was the leading producer of combat aircraft during World War II and had a large surplus of machine tools and manufacturing facilities for airplanes at the end of the war. There were also experienced airplane manufacturing and maintenance personnel. Additionally, radar had been developed just before the war.


title: Economic history of the United States

text: The aircraft industry had the highest productivity growth of any major industry, growing by 8.9% per year in 1929–1966.


title: Economic history of the United States

text: During World War II the United States hired hundreds of thousands of workers, put them all in 4 major factories and had a government budget of over $3 billion (). The B-29 project required the US Army Air Forces to have unprecedented organizational capabilities as this project included several major private contractors and labor unions. American aircraft production was the single largest sector of the war economy, costing $45 billion (almost a quarter of the $183 billion spent on war production), employing a staggering two million workers, and, most importantly, producing over 125,000 aircraft. Production of Selected U.S. Military Aircraft (1941–1945): Bombers-49,123 Fighters-63,933 Cargo-14,710 Total-127,766.


title: Economic history of the United States

text: Very little housing had been built during the Great Depression and World War II, except for emergency quarters near war industries. Overcrowded and inadequate apartments was the common condition. Some suburbs had developed around large cities where there was rail transportation to the jobs downtown. However, the real growth in suburbia depended on the availability of automobiles, highways, and inexpensive housing. The population had grown, and the stock of family savings had accumulated the money for down payments, automobiles and appliances. The product was a great housing boom. Whereas an average of 316,000 new housing non-farm units had been constructed from the 1930s through 1945, there were 1,450,000 units built annually from 1946 through 1955.


title: Economic history of the United States

text: The G.I. Bill of Rights guaranteed low cost loans for veterans, with very low down payments, and low interest rates. With 16 million eligible veterans, the opportunity to buy a house was suddenly at hand. In 1947 alone, 540,000 veterans bought one; their average price was $7300. The construction industry kept prices low by standardization – for example standardizing sizes for kitchen cabinets, refrigerators and stoves, allowed for mass production of kitchen furnishings. Developers purchased empty land just outside the city, installed tract houses based on a handful of designs, and provided streets and utilities, or local public officials race to build schools. The most famous development was Levittown, in Long Island just east of New York City. It offered a new house for $1000 down, and $70 a month; it featured three bedrooms, fireplace, gas range and gas furnace, and a landscaped lot of 75 by 100 feet, all for a total price of $10,000. Veterans could get one with a much lower down payment.


title: Economic history of the United States

text: Construction of the Interstate Highway System began in 1956 under President Eisenhower. In long-term perspective the interstate highway system was a remarkable success, that has done much to sustain Eisenhower's positive reputation. Although there have been objections to the negative impact of clearing neighborhoods in cities, the system has been well received. The railroad system for passengers and freight declined sharply, but the trucking expanded dramatically and the cost of shipping and travel fell sharply. Suburbanization became possible, with the rapid growth of easily accessible, larger, cheaper housing than was available in the overcrowded central cities. Tourism dramatically expanded as well, creating a demand for more service stations, motels, restaurants and visitor attractions. There was much more long-distance movement to the Sunbelt for winter vacations, or for permanent relocation, with convenient access to visits to relatives back home. In rural areas, towns and small cities off the grid lost out as shoppers followed the interstate, and new factories were located near them.


title: Economic history of the United States

text: Mainframe business computer systems were introduced in the 1950s following the manufacture of transistors. Mainframe computers


title: Economic history of the United States

text: were in widespread use by the 1960s. These computers handled a variety of accounting, billing and payroll applications.


title: Economic history of the United States

text: One highly significant application was the Sabre airline reservations system, which first went into operation in 1960. With Sabre reservations could be placed remotely using teleprinters and all functions were done automatically, including ticket printing. This eliminated manually handling file cards.


title: Economic history of the United States

text: Federal taxes on incomes, profits and payrolls had risen to high levels during World War II and had been cut back only slowly; the highest rates for individuals reached the 90% level. Congress cut tax rates in 1964. President Lyndon B. Johnson (1963–69) dreamed of creating a "Great Society", and began many new social programs to that end, such as Medicaid and Medicare.


title: Economic history of the United States

text: After the Cold War began in 1947, and especially after the Korean War began in 1950, the government adopted a strategy in NSC 68 military spending. Economists examined how much this "military Keynesianism" stimulated the economy.


title: Economic history of the United States

text: President Eisenhower feared that excessive military spending would damage the economy, so he downsized the Army after Korea and shifted priorities to missiles and nuclear weapons (which were much less expensive than army divisions). He also promoted the Interstate Highway system as necessary for national defense, and made space exploration a priority. His successor John F. Kennedy made a manned mission to the moon a national priority. Much of the new spending went to California and the West, a continuation of wartime spending.


title: Economic history of the United States

text: An even greater impact came in the South, where it stimulated a modernization of the economy away from cotton towards manufacturing and high technology. For example, there were new, large technologically sophisticated installations at the Atomic Energy Commission's Savannah River Site in South Carolina; the Redstone Arsenal at Huntsville, Alabama; nuclear research facilities at Oak Ridge, Tennessee; and space facilities at Cape Canaveral, Florida, at the Lyndon B. Johnson Space Center in Houston, and at the John C. Stennis Space Center in Mississippi.


title: Economic history of the United States

text: The Defense Department financed some of private industry's research and development throughout these decades, most notably ARPANET (which would become the Internet).


title: Economic history of the United States

text: The percentage of workers belonging to a union (or "density") in the United States peaked in 1954 at almost 35% and the total number of union members peaked in 1979 at an estimated 21.0 million. Union membership has continued to decline into the 2010s due to right-to-work laws adopted by many states, globalization undermining higher-wage firms, and increasing political opposition exemplified by the breaking of the 1981 strike of the Professional Air Traffic Controllers Organization (1968) by President Ronald Reagan.


title: Economic history of the United States

text: Manufacturing employment and nominal value added shares of the economy have been in a steady decline since World War II. In the late 1960s manufacturing's share of both employment and nominal value added was about 26%, falling to about 11% and 12% respectively by the end of the century.


title: Economic history of the United States

text: Per-capita steel consumption in the U.S. peaked in 1977, then fell by half before staging a modest recovery to levels well below the peak.


title: Economic history of the United States

text: The decline in the relative size of manufacturing coincided with a rise in the size of the service sector.


title: Economic history of the United States

text: Technological innovations of the final third of the 20th century were significant, but were not as powerful as those of the first two-thirds of the century. Manufacturing productivity growth continued at a somewhat slower rate than in earlier decades, but overall productivity was dragged down by the relative increase in size of the government and service sectors.


title: Economic history of the United States

text: In the late 1960s it was apparent to some that this juggernaut of economic growth was slowing down, and it began to become visibly apparent in the early 1970s. The United States grew increasingly dependent on oil importation from OPEC after peaking production in 1970, resulting in oil supply shocks in 1973 and 1979. Stagflation gripped the nation, and the government experimented with wage and price controls under President Nixon.


title: Economic history of the United States

text: The Bretton Woods Agreement collapsed in 1971–1972, and President Nixon closed the gold window at the Federal Reserve, taking the United States entirely off the gold standard.


title: Economic history of the United States

text: President Gerald Ford introduced the slogan, "Whip Inflation Now" (WIN). In 1974, productivity shrunk by 1.5%, though this soon recovered. In 1976, Jimmy Carter won the Presidency. Carter would later take much of the blame for the even more turbulent economic times to come, though some say circumstances were outside his control. Inflation continued to climb skyward. Productivity growth was small, when not negative. Interest rates remained high, with the prime reaching 20% in January 1981; Art Buchwald quipped that 1980 would go down in history as the year when it was cheaper to borrow money from the Mafia than the local bank.


title: Economic history of the United States

text: This period also saw the increased rise of the environmental and consumer movements, and the government established new regulations and regulatory agencies such as the Occupational Safety and Health Administration, the Consumer Product Safety Commission, the Nuclear Regulatory Commission, and others.


title: Economic history of the United States

text: Deregulation gained momentum in the mid-1970s, spurred by slow productivity growth and increasing operation and capital costs in several key sectors. It was not until 1978 that the first meaningful deregulation legislation, the Airline Deregulation Act, was cleared by Congress. Transportation deregulation accelerated in 1980, with the deregulation of railroads and trucking. Deregulation of interstate buses followed in 1982. In addition to transportation deregulation, savings and loan associations and banks were partially deregulated with the Depository Institutions Deregulation and Monetary Control Act in 1980 and the Garn–St. Germain Depository Institutions Act in 1982.


title: Economic history of the United States

text: On a broader front, the economy initially recovered at a brisk pace from the 1973–75 recession. Incoming president Jimmy Carter instituted a large fiscal stimulus package in 1977 in order to boost the economy. However, inflation began a steep rise beginning in late 1978, and rose by double digits following the 1979 energy crisis. In order to combat inflation, Carter appointed Paul Volcker to the Federal Reserve, who raised interest rates and caused a sharp recession in the first six months of 1980. In March 1980, Carter introduced his own policies for reducing inflation, and the Federal Reserve brought down interest rates to cooperate with the initiatives.


title: Economic history of the United States

text: During the 1980 recession, manufacturing shed 1.1 million jobs, while service industries remained intact. Employment in automotive manufacturing in particular suffered, experiencing a 33% reduction by the end of the recession. Collectively these factors contributed to the election of Ronald Reagan in 1980. The Federal Reserve once again began to raise interest rates in 1981, which plunged the economy back into recession. Unemployment rose to a peak of 10.8% in December 1982, a post-war high.


title: Economic history of the United States

text: In 1981, Ronald Reagan introduced Reaganomics. That is, fiscally expansive economic policies, cutting marginal federal income tax rates by 25%. Inflation dropped dramatically from 13.5% annually in 1980 to just 3% annually in 1983 due to a short recession and the Federal Reserve Chairman Paul Volcker's tighter control of the money supply and interest rates. Real GDP began to grow after contracting in 1980 and 1982. The unemployment rate continued to rise to a peak of 10.8% by late 1982, but dropped well under 6% unemployment at the end of Reagan's presidency in January 1989.


title: Economic history of the United States

text: 20 million jobs were created under Reagan's presidency – which were made up of 82 percent high-paying and long-term jobs. From 1982 to 1987 the Dow Jones Industrial Average gained over 1900 points from 776 in 1982 to 2722 in 1987 – about a 350% increase. An economic boom took place from 1983 until a recession began in 1990. Between 1983 and 1989 the number of people below the poverty line decreased by 3.8 million.


title: Economic history of the United States

text: The boom saw the increasing popularity of electronic appliances like computers, cell phones, music players and video games. Credit cards were a symbol of the boom. The Reagan tax cuts seemed to work and Americans were able to shrug off the crash of 1987 by the beginning of 1988. The growth ended by 1990 after seven years of stock market growth and prosperity for the upper and middle class. The federal debt spawned by his policies tripled (from $930 billion in 1981 to $2.6 trillion in 1988), reaching record levels.


title: Economic history of the United States

text: Though debt almost always increased under every president in the latter half of the 20th century, it declined as a percentage of GDP under all presidents after 1950 and prior to Reagan. In addition to the fiscal deficits, the U.S. started to have large trade deficits. Also it was during his second term that the Tax Reform Act of 1986 was passed. Vice President George H. W. Bush was elected to succeed Reagan in 1988. The early Bush Presidency's economic policies were sometimes seen as a continuation of Reagan's policies, but in the early 1990s, Bush went back on a promise and increased taxes in a compromise with Congressional Democrats. He ended his presidency on a moderate note, signing regulatory bills such as the Americans With Disabilities Act, and negotiating the North American Free Trade Agreement. In 1992, Bush and third-party candidate Ross Perot lost to Democrat Bill Clinton.


title: Economic history of the United States

text: The advent of deindustrialization in the late 1960s and early 1970s saw income inequality increase dramatically to levels never seen before. But at the same time, most orthodox economists, and most policy makers, pointed to the fact that consumers could buy so many goods, even with the inflation of the 1970s, as evidence that the general shift away from manufacturing and into services was creating widespread prosperity. In 1968, the U.S. Gini coefficient was 0.386. In 2005, the American Gini coefficient had reached 0.469.


title: Economic history of the United States

text: Critics of economic policies favored by Republican and Democratic administrations since the 1960s, particularly those expanding "free trade" and "open markets" (see Neoliberalism) say that these policies, though benefiting trading as well as the cost of products in the U.S., could have taken their own on the prosperity of the America middle-class. But in this period, consumers were buying as never before with so many products and goods at such low costs and in high quantities. Critics however argued that this consumer behavior was giving a false reading of the health of the economy, because it was being paid for by taking on rapidly increasing levels of indebtedness, thus covering up the stagnating wages and earnings of most of the workforce.


title: Economic history of the United States

text: During the 1990s, government debt increased by 75%, GDP rose by 69%, and the stock market as measured by the S&P 500 grew more than threefold.


title: Economic history of the United States

text: From 1994 to 2000 real output increased, inflation was manageable and unemployment dropped to below 5%, resulting in a soaring stock market known as the dot-com boom. The second half of the 1990s was characterized by well-publicized initial public offerings of high-tech and "dot-com" companies. By 2000, however, it was evident a bubble in stock valuations "had" occurred, such that beginning in March 2000, the market would give back some 50% to 75% of the growth of the 1990s.


title: Economic history of the United States

text: In the late 20th century, business executives started being paid more in stock and less in salary, and at a disproportionately greater rate compared to other employees and to their own performance. CEO compensation at the top 350 firms increased by 940.3% from 1978 to 2018 in the United States. The typical worker's annual compensation grew just 11.9% within the same period. This disparity has been criticized as unfair, and large payouts after bad performance have been criticized as bad for shareholders.


title: Economic history of the United States

text: The economy worsened in 2001 with output increasing only 0.3% and unemployment and business failures rising substantially, and triggering a recession that is often blamed on the September 11 attacks.


title: Economic history of the United States

text: An additional factor in the fall of the US markets and in investor confidence included numerous corporate scandals.


title: Economic history of the United States

text: In 2001–2007, the red-hot housing market across the United States fueled a false sense of security regarding the strength of the U.S. economy.


title: Economic history of the United States

text: Most unions in America are aligned with one of two larger umbrella organizations: the AFL–CIO created in 1955, and the Change to Win Federation which split from the AFL-CIO in 2005. Both advocate policies and legislation on behalf of workers in the United States and Canada, and take an active role in politics. The AFL–CIO is especially concerned with global trade issues.


title: Economic history of the United States

text: In 2010, the percentage of workers belonging to a union in the United States (or total labor union "density") was 11.4%, compared to 18.3% in Japan, 27.5% in Canada and 70% in Finland.


title: Economic history of the United States

text: The most prominent unions are among public sector employees such as teachers, police and other non-managerial or non-executive federal, state, county and municipal employees. Members of unions are disproportionately older, male and residents of the Northeast, the Midwest, and California.


title: Economic history of the United States

text: The majority of union members come from the public sector. Nearly 34.8% of public sector employees are union members. In the private sector, just 6.3% of employees are union members—levels not seen since 1932 .


title: Economic history of the United States

text: Union workers in the private sector average 10–30% higher pay than non-union in America after controlling for individual, job, and labour market characteristics.


title: Economic history of the United States

text: The Great Recession was a sharp decline in the United States' economy. In 2008, a series of related economic disasters hit the American and European financial systems. The bursting of a worldwide bubble in housing set the recession in motion. The end of housing bubbles in California, Florida and Arizona led to the collapse of housing prices and the shrinkage of the construction sector. Millions of mortgages (averaging about $200,000 each) had been bundled into securities called collateralized debt obligations that were resold worldwide. Many banks and hedge funds had borrowed hundreds of billions of dollars to buy these securities, which were now "toxic" because their value was unknown and no one wanted to buy them.


title: Economic history of the United States

text: A series of the largest banks in the U.S. and Europe collapsed; some went bankrupt, such as Lehman Brothers with $690 billion in assets; others such as the leading insurance company AIG, the leading bank Citigroup, and the two largest mortgage companies were bailed out by the government. Congress voted $700 billion in bailout money, and the Treasury and Federal Reserve committed trillions of dollars to shoring up the financial system, but the measures did not reverse the declines. Banks drastically tightened their lending policies, despite infusions of federal money. The government for the first time took major ownership positions in the largest banks. The stock market plunged 40%, wiping out tens of trillions of dollars in wealth; housing prices fell 20% nationwide wiping out trillions more. By late 2008 distress was spreading beyond the financial and housing sectors, especially as the "Big Three" of the automobile industry (General Motors, Ford and Chrysler) were on the verge of bankruptcy, and the retail sector showed major weaknesses. Critics of the $700 billion Troubled Assets Relief Program (TARP) expressed anger that much of the TARP money that has been distributed to banks is seemingly unaccounted for, with banks being secretive on the issue.


title: Economic history of the United States

text: President Barack Obama signed the American Recovery and Reinvestment Act of 2009 in February 2009; the bill provides $787 billion in stimulus through a combination of spending and tax cuts. The plan is largely based on the Keynesian theory that government spending should offset the fall in private spending during an economic downturn; otherwise the fall in private spending may perpetuate itself and productive resources, such as the labor hours of the unemployed, will be wasted. Critics claim that government spending cannot offset a fall in private spending because the government must borrow money from the private sector in order to add money to it. However, most economists do not think such "crowding out" is an issue when interest rates are near zero and the economy is stagnant. Opponents of the stimulus also point to problems of possible future inflation and government debt caused by such a large expenditure.


title: Economic history of the United States

text: In the U.S., jobs paying between $14 and $21 per hour made up about 60% those lost during the recession, but such mid-wage jobs have comprised only about 27% of jobs gained during the recovery through mid-2012. In contrast, lower-paying jobs constituted about 58% of the jobs regained.


title: Economic history of the United States

text: In the 21st century, proliferation of smartphones and increasing reliance on outsourced labor led to a class of "gig workers" who perform work such as package delivery for a company like Amazon.com or Walmart, food delivery for a company like DoorDash, or driving for a ridehailing company like Uber or Lyft. This has led to disputes alleging misclassification of employees as independent contractors.


title: Economic history of the United States

text: On September 16, 2019, the Federal Reserve announced that it would begin acting as the role of investor in order to provide funds in the repo markets after the overnight lending rate jumped above 8% due to a series of technical factors that limited the supply of available funds. Five months after the decision was made, the American stock markets suffered their biggest crash in modern U.S. history as a result of concerns surrounding the coronavirus pandemic and the Russia-Saudi Arabia oil price war. Before the crash happened, the unemployment rate in the United States stood at 3.6% in late 2019, which was the lowest unemployment rate since World War II. Although the unemployment rate decreased substantially between 2009 and 2019, income inequality continued to increase. In September 2019, the United States Census Bureau reported that income inequality in the United States had reached its highest level in 50 years, with the Gini index increasing from 48.2 in 2017 to 48.5 in 2018. Despite the low unemployment, the ISM Manufacturing Index dropped below 50% in August 2019, reaching a record low of 48.3% in October of that year (which was the lowest level since June 2009); it would continue to remain below 50% in the months leading up to the crash.


title: Economic history of the United States

text: The share of national income going to employees is at approximately the same level now as it was in 1970.


title: Economic history of the United States

text: Much of the apparent divergence between pay and productivity stems from using different surveys and formulas to calculate inflation.


title: Sorbian languages

text: The Sorbian languages (, ) are the Upper Sorbian language and Lower Sorbian language, two closely related and partially mutually intelligible languages spoken by the Sorbs, a West Slavic ethno-cultural minority in the Lusatia region of Eastern Germany. They are classified under the West Slavic branch of the Indo-European languages and are therefore closely related to the other two West Slavic subgroups: Lechitic and Czech–Slovak. Historically, the languages have also been known as Wendish (named after the Wends, the earliest Slavic people in modern Poland and Germany) or Lusatian. Their collective ISO 639-2 code is .


title: Sorbian languages

text: The two Sorbian languages, each having its own literary standard, are Upper Sorbian (), spoken by about 20,000–25,000 people in Saxony, and Lower Sorbian (), spoken by about 7,000 people in Brandenburg. The area where the two languages are spoken is known as Lusatia ( in Upper Sorbian, in Lower Sorbian, or in German).


title: Sorbian languages

text: After the settlement of the formerly Germanic territories (the part largely corresponding to the former East Germany) by the Slavic ancestors of the Sorbs in the 5th and 6th centuries CE, the Sorbian language (or its predecessors) had been in use in much of what was the southern half of Eastern Germany for several centuries, and still had its stronghold in (Upper and Lower) Lusatia, where it enjoys national protection and fostering to the present day.


title: Sorbian languages

text: For people living in the medieval Northern Holy Roman Empire and its precursors, especially for the Saxons, the Wends ("Wende") were heterogeneous groups and tribes of Slavic peoples living near Germanic settlement areas, in the area west of the River Oder, an area later entitled "Germania Slavica", settled by the Polabian Slav tribes in the north and by others, such as the Sorbs and the Milceni, further south (see Sorbian March).


title: Sorbian languages

text: The exact origin of the Sorbian language is uncertain. While some linguists consider it to be a transitory language between Lechitic and other non-Lechitic languages of West Slavic languages, others like Heinz Schuster-Šewc consider it a separate dialectical group of Proto-Slavic which is a mixture of Proto-Lechitic and South Slavic languages. Furthermore, while some consider it a single language which later diverged to two major dialects, others consider these dialects two separate languages. There exist significant differences in phonology, morphology, and lexicon between them. Several characteristics in Upper Sorbian language indicate a close proximity to Czech language which again are absent in Lower Sorbian language. According to some researchers the archaeological data cannot confirm the thesis about a single linguistic group yet supports the claim about two separated ethno-cultural groups with different ancestry whose respective territories correspond to Tornow-type ceramics (Lower Sorbian language) and Leipzig-type ceramics (Upper Sorbian language), both derivations of Prague culture.


title: Sorbian languages

text: Outside Lusatia, the Sorbian language has been superseded by German. From the 13th century on, the language suffered official discrimination. Bible translations into Sorbian provided the foundations for its writing system.


title: Sorbian languages

text: In Germany, Upper and Lower Sorbian are officially recognized and protected as minority languages. In the home areas of the Sorbs, both languages are recognized as second official languages next to German.


title: Sorbian languages

text: The city of Bautzen in Upper Lusatia is the centre of Upper Sorbian culture. Bilingual signs can be seen around the city, including the name of the city, "Bautzen/".


title: Sorbian languages

text: To the north, the city of Cottbus/Chóśebuz is considered the cultural centre of Lower Sorbian; there, too, bilingual signs are found.


title: Sorbian languages

text: Sorbian was also spoken in the small Sorbian ("Wendish") settlement of Serbin in Lee County, Texas, however no speakers remain there. Until 1949, newspapers were published in Sorbian. The local dialect was heavily influenced by surrounding speakers of German and English.


title: Sorbian languages

text: The German terms "Wends" ("Wenden") and "Wendish" ("wendisch/Wendisch") once denoted "Slav(ic)" generally; they are today mostly replaced by "Sorbs" ("Sorben") and "Sorbian" ("sorbisch/Sorbisch") with reference to Sorbian communities in Germany.


title: Sorbian languages

text: The use of Sorbian languages has been contracting for a number of years. The loss of Sorbian language use in emigrant communities, such as in Serbin, Texas, has not been surprising. But within the Sorbian homelands, there has also been a decrease in Sorbian identity and language use. In 2008, Sorbians protested three kinds of pressures against Sorbians: "(1.) the destruction of Sorbian and German-Sorbian villages as a result of lignite mining; (2.) the cuts in the network of Sorbian schools in Saxony; (3.) the reduction of financial resources for the Sorbian institutions by central government."


title: Sorbian languages

text: A study of Upper Sorbian found a number of trends that go against language vitality. There are policies that have led to "unstable diglossia". There has been a loss of language domains in which speakers have the option to use either language, and there is a disruption of the patterns by which the Sorbian language has traditionally been transmitted to the next generation. Also, there is no strong written tradition and there is not a broadly accepted formal standardized form of the language(s). There is a perception of the loss of language rights, and there are negative attitudes towards the languages and their speakers.


title: Sorbian languages

text: Both Upper and Lower Sorbian have the dual for nouns, pronouns, adjectives, and verbs; very few living Indo-European languages retain this as a productive feature of the grammar. For example, the word is used for one hand, for two hands, and for more than two hands. As with most Slavic languages, Sorbian uses no articles.


title: Sorbian languages

text: The following is selected vocabulary from the two Sorbian languages compared with other Slavic languages.


title: Mustafa Shakir

text: Mustafa Shakir (born August 21, 1976) is an American actor known for his portrayal as Bushmaster in "Marvel's Luke Cage", Big Mike in "The Deuce" and Jet Black in "Cowboy Bebop" (2021).


title: Mustafa Shakir

text: Shakir earned one of the lead roles in the short lived "Quarry" and made a guest appearance on "Timeless". He had previously auditioned for the roles of Black Lightning in the eponymous television show and M'Baku in "Black Panther", but failed to acquire either role. He was cast as John McIver/Bushmaster, in the second season of "Luke Cage". In 2021 he starred in the Netflix live-action adaptation of "Cowboy Bebop" as Jet Black which was cancelled after one season.


title: Paul Reynaud

text: Paul Reynaud (; 15 October 1878 – 21 September 1966) was a French politician and lawyer prominent in the interwar period, noted for his stances on economic liberalism and militant opposition to Germany.


title: Paul Reynaud

text: Reynaud opposed the Munich Agreement of September 1938, when France and the United Kingdom gave way before Hitler's proposals for the dismemberment of Czechoslovakia.


title: Paul Reynaud

text: After the outbreak of World War II Reynaud became the penultimate Prime Minister of the Third Republic in March 1940. He was also vice-president of the Democratic Republican Alliance center-right party. Reynaud was Prime Minister during the German defeat of France in May and June 1940; he persistently refused to support an armistice with Germany, as premier in June 1940, he unsuccessfully attempted to save France from German occupation in World War II, and resigned on 16 June. After unsuccessfully attempting to flee France, he was arrested by Philippe Petain's administration. Surrendering to German custody in 1942, he was imprisoned in Germany and later Austria until liberation in 1945, where he was released after the Battle of Itter Castle in which one of the leaders, German Major Josef Gangl, declared a hero by the Austrian resistance, gave his life, taking a sniper's bullet to save Reynaud.


title: Paul Reynaud

text: Elected to the Chamber of Deputies in 1946, he became a prominent figure again in French political life, serving in several cabinet positions. He favoured a United States of Europe, and participated in drafting the constitution for the Fifth Republic, but resigned from government in 1962 after disagreement with President de Gaulle over changes to the electoral system.


title: Paul Reynaud

text: Reynaud was born in Barcelonnette, Alpes-de-Haute-Provence, the son of Alexandre and Amelie (née Gassier) Reynaud. His father had made a fortune in the textile industry, enabling Reynaud to study law at the Sorbonne. He entered politics and was elected to the French Chamber of Deputies from 1919 to 1924, representing Basses-Alpes, and again from 1928, representing a Paris district. Although he was first elected as part of the conservative "Blue Horizon" bloc in 1919, Reynaud shortly thereafter switched his allegiance to the centre-right Democratic Republican Alliance party, later becoming its vice-president.


title: Paul Reynaud

text: In the 1920s, Reynaud developed a reputation for laxity on German reparations, at a time when many in the French government backed harsher terms for Germany. In the 1930s during the Great Depression, particularly after 1933, Reynaud's stance hardened against the Germans at a time when all nations were struggling economically. Reynaud backed a strong alliance with the United Kingdom and, unlike many others on the French Right, better relations with the Soviet Union as a counterweight against the Germans.


title: Paul Reynaud

text: Reynaud held several cabinet posts in the early 1930s, but he clashed with members of his party after 1932 over French foreign and defense policy. In June 1934, Reynaud defended in the Chamber of Deputies the need to devalue the French franc, whose belonging to the gold standard was increasingly harmful for the French economy, but in those years French public opinion was opposed to any devaluation.


title: Paul Reynaud

text: He was not given another cabinet position until 1938. Like Winston Churchill, Reynaud was a maverick in his party and often alone in his calls for rearmament and resistance to German aggrandizement. Reynaud was a supporter of Charles de Gaulle's theories of mechanized warfare in contrast to the static defense doctrines that were in vogue among many of his countrymen, symbolized by the Maginot Line. He strongly opposed appeasement in the run-up to the Second World War. He also clashed with his party on economic policy, backing the devaluation of the franc as a solution to France's economic woes. Pierre Étienne Flandin, the leader of the Democratic Republican Alliance, agreed with several of Reynaud's key policy stances, particularly on Reynaud's defence of economic liberalism.


title: Paul Reynaud

text: The franc was devalued, in a range between 25% and 34%, by the Popular Front government presided by Leon Blum on 1 October 1936.


title: Paul Reynaud

text: Reynaud returned to the cabinet in 1938 as Minister of Justice under Édouard Daladier. The Sudeten Crisis, which began not long after Reynaud was named Minister of Justice, again revealed the divide between Reynaud and the rest of the Alliance Démocratique; Reynaud adamantly opposed abandoning the Czechs to the Germans, while Flandin felt that allowing Germany to expand eastward would inevitably lead to a conflict with the Soviets that would weaken both. Reynaud publicly made his case, and in response Flandin pamphleted Paris in order to pressure the government to agree to Hitler's demands. Reynaud subsequently left his party to become an independent. However, Reynaud still had the support of Daladier, whose "politique de fermeté" ("policy of firmness") was very similar to Reynaud's notion of deterrence.


title: Paul Reynaud

text: Reynaud, however, had always wanted the Finance ministry. He endorsed radically liberal economic policies in order to draw France's economy out of stagnation, centered on a massive program of deregulation, including the elimination of the forty-hour work week. The notion of deregulation was very popular among France's businessmen, and Reynaud believed that it was the best way for France to regain investors' confidence again and escape the stagnation its economy had fallen into. The collapse of Léon Blum's government in 1938 was a response to Blum's attempt to expand the regulatory powers of the French government; there was therefore considerable support in the French government for an alternative approach like Reynaud's.


title: Paul Reynaud

text: Paul Marchandeau, Daladier's first choice for finance minister, offered a limited program of economic reform that was not to Daladier's satisfaction; Reynaud and Marchandeau swapped portfolios, and Reynaud went ahead with his radical liberalization reforms. Reynaud's reforms were implemented, and the government faced down a one-day strike in opposition. Reynaud addressed France's business community, arguing that "We live in a capitalist system. For it to function we must obey its laws. These are the laws of profits, individual risk, free markets, and growth by competition."


title: Paul Reynaud

text: With Reynaud as Minister of Finance, the confidence of the investors returned and the French economy recovered.


title: Paul Reynaud

text: Reynaud's reforms involved a massive austerity program (although armament measures were not cut). At the outbreak of war, however, Reynaud was not bullish on France's economy; he felt that the massive increase in spending that a war entailed would stamp out France's recovery.


title: Paul Reynaud

text: The French Right was ambivalent about the war in late 1939 and early 1940, feeling that the Soviets rather than Nazi Germany were the greater long-term threat. Daladier regarded the war with Germany as the greater priority and so refused to send aid to the Finns, who were under attack from the USSR, then loosely allied to Germany, in the Winter War. News that the Finns had sued for peace in March 1940 prompted Flandin and Pierre Laval to hold secret sessions of the legislature that denounced Daladier's actions; the government fell on 19 March. The government named Reynaud Prime Minister of France two days later.


title: Paul Reynaud

text: Although Reynaud was increasingly popular, the Chamber of Deputies elected him premier by only a single vote with most of his own party abstaining; over half of the votes for Reynaud came from the French Section of the Workers' International (SFIO) party. With so much support from the left, and opposition from many parties on the right, Reynaud's government was especially unstable; many on the Right demanded that Reynaud attack not Germany, but the Soviet Union. The Chamber also forced Daladier, whom Reynaud held personally responsible for France's weakness, to be Reynaud's Minister of National Defense and War. One of Reynaud's first acts was at a meeting of the Anglo-French Supreme War Council held in London on 28 March 1940, whose main outcome was the signing of a declaration with British Prime Minister Neville Chamberlain that neither of the two countries would sign a separate peace. A joint communiqué declared 'Both Governments mutually undertake that during the present war they will neither negotiate nor conclude an armistice or treaty of peace except by mutual agreement. They undertake to maintain after conclusion of peace a community of action for so long as may be necessary'.


title: Paul Reynaud

text: On 15 June 1940 the French cabinet rejected a British proposal, imagined by Jean Monnet and defended by De Gaulle, for the union of both countries.


title: Paul Reynaud

text: Reynaud abandoned any notion of a "long war strategy" based on attrition. Aiming at diverting German attentions from France, Reynaud entertained suggestions to expand the war to the Balkans or northern Europe; he was instrumental in launching the allied campaign in Norway, though it ended in failure. Britain's decision to withdraw on 26 April prompted Reynaud to travel to London to lobby the British personally to stand and fight in Norway.


title: Paul Reynaud

text: The Battle of France began less than two months after Reynaud came to office. France was badly mauled by the initial attack in early May 1940, and Paris was threatened. On 15 May, five days after the invasion began, Reynaud contacted Churchill and famously remarked, "We have been defeated... we are beaten; we have lost the battle... The front is broken near Sedan." Indeed, such was the situation regarding equipment and morale that Reynaud received a postcard found on the body of an officer who had committed suicide in Le Mans. It stated: "I am killing myself Mr President to let you know that all my men were brave, but one cannot send men to fight tanks with rifles."


title: Paul Reynaud

text: On 26 May, around lunchtime, Reynaud attended a meeting in London with Churchill. At 2 pm Churchill reported to the War Cabinet that Reynaud had stated that the French military situation was hopeless, that he had no intention of signing a separate peace with Germany, but that he might be forced to resign and that others in the French government might sign such a treaty. At this stage Churchill told Reynaud that he did not rule out talks with Mussolini altogether (Italy was still neutral). The Foreign Secretary Lord Halifax met Reynaud later in the afternoon, before the latter's return to France. This was the beginning of the British May 1940 War Cabinet Crisis, in which Halifax favoured what was euphemistically described as "the Reynaud Option": approaching the Italians to see if acceptable peace terms could be negotiated, perhaps by giving up some British territory in the Mediterranean. Halifax was eventually overruled by Churchill.


title: Paul Reynaud

text: On 28 May Churchill sent a telegram to Reynaud stating that there would be no approach to Mussolini "at that time" but still leaving the possibility open. Mussolini had rejected an approach by President Roosevelt along the lines suggested by Britain and France. On 28 May, it was learned that Italy was planning to enter the war on Germany's side, which would happen on 10 June.


title: Paul Reynaud

text: In early June Charles de Gaulle, whom Reynaud had long supported and one of the few French commanders to have fought the Germans successfully in May 1940, was promoted to brigadier general and named undersecretary of war.


title: Paul Reynaud

text: Reynaud vacillated a little on his return from London on 26 May, but otherwise wanted to continue to fight. However, he was unable to persuade enough of his colleagues. Italy entered the war on 10 June; on that same day, Commander-in-Chief General Weygand strode into Reynaud's office and demanded an armistice. At around 11 pm that night Reynaud and de Gaulle left Paris for Tours; the rest of the government followed the next day. De Gaulle was unable to persuade Reynaud to sack Weygand.


title: Paul Reynaud

text: At the Anglo-French conference at the Chateau du Muguet, Briare, on 11–12 June, Churchill urged the French to carry on fighting, either in Brittany or in French North Africa, or by guerrilla warfare, meeting strong resistance from Deputy Prime Minister Marshal Pétain. At the Cabinet meeting on the evening of 12 June it was clear that there was a growing movement for an armistice, and it was decided to move to Bordeaux rather than to a fortified Brittany.


title: Paul Reynaud

text: At the next Anglo-French conference at Tours on 13 June, Reynaud demanded that France be released from the agreement which he had made with Prime Minister Neville Chamberlain in March 1940, so that France could seek an armistice. Churchill said that he "understood" the French action but (contrary to later claims that he approved) that he did not agree with it. At the Cabinet meeting that evening (Churchill had returned to London rather than address the French Cabinet as Reynaud had wished) Pétain strongly supported Weygand's demand for an armistice, and said that he himself would remain in France to share the suffering of the French people and to begin the national rebirth. President Albert Lebrun refused Reynaud's resignation on 13 June.


title: Paul Reynaud

text: Edward Spears recorded that Reynaud was, from the evening of 13 June, under great stress. Paul Baudouin and Marie-Joseph Paul de Villelume had been leaning on Reynaud to seek an armistice with Germany, as had his mistress, the Comtesse Hélène de Portes, a Fascist sympathizer. On 14 June Villelume and de Portes called on the American diplomat Anthony Joseph Drexel Biddle Jr. and stated that France had no alternative but to seek an armistice and that they were speaking on behalf of Reynaud, although Biddle did not believe them.


title: Paul Reynaud

text: At Cabinet on 15 June, Reynaud urged the Cabinet to adopt the Dutch example, that the Army should lay down its arms so that the fight could be continued from abroad; Pétain was sympathetic. Pétain was sent to speak to General Weygand (who was waiting outside, as he was not a member of the Cabinet). Weygand persuaded him that this would be a shameful surrender. Chautemps then suggested a fudge proposal, an inquiry about terms. The Cabinet voted 13-6 for the Chautemps proposal. Reynaud tried to resign on the spot but Lebrun shouted at him. Admiral Darlan, who had been opposed to an armistice until 15 June, now agreed, provided the French fleet was kept out of German hands. On 15 June, Reynaud threw two glasses of water over de Portes at dinner; a key telegram had been found in her bed after it went missing.