Chapter 19.2, Problem 5R

To determine

To draw:A timeline explaining the movement of the economy of the United States from agriculture-based economy to industrialization and further service and technology.

Explanation of Solution

The timeline showing the development of the economy of the United States is as explained below:

  

The economy of the United States was an agricultural economy in the 1800s. Slowly, agriculture and farming changed into industries. The workforce of agriculture started working in industries and many industrial policies were made. The year 1929 saw a major downfall in the economy which is known as the Great Depression. The economy crashed and is considered one of the major setbacks in the history of the United States. In 1946, budget cuts were made to cope with the downfall of the economy. The 1950s also experienced many war situations. The economy at that time was based more on industries than on the service field. In 1978, the Federal Reserve raised the interest rates to 20% to deal with the situation of inflation. In 1992, NAFTA, North American Free Trade Agreement was drafted in order to promote free trade of products and services in countries of North America. Till this time, the literacy rate has raised, and the main workforce of the economy has shifted into the technology and service sector. In 2000, the tech bubble busted means there was a lot more technological advancement and the economy progressed. However, war and war-like situations continued and caused an increase in government spending and inflation. The country marked a fiscal cliff in the year 2012 and recently in 2017 Tax acts were introduced.