1873 Depression
Although supply and demand and transportation shaped our country for today, the 1873 depression was a result of these very same factors. As the American lands were being shaped with the railroad system, there were large amounts of money put out and never recycled back to the economy. The depression was also blamed on the republicans party because of their greedy ways and corruption throughout the government. With the combination of money, power, and intimidation, the republican government almost single- handedly brought down the economy in 1873.
In 1869 the railroads were completed, and was thought to be a stepping stone in American life. Although this was a historical event, the after-math of the railroads would affect the economy in a great way. Head officials and other non-producers were part of The Credit Mobilier scandal of 1872, which manipulated taxpayers and bullied them out of their fair share of land. Yes, some did get to keep their farms and stay on the land they thought was theirs, but in the end most ended up indebted to the government, which caused a downward spiral financially in the economy. Also after the railroads were built the need for steel and iron were not so much in demand and this caused many railroads and banks to go bankrupt.
In my opinion, the immigrants also caused the 1873 depression. The Chinese, Polish, and Irish were all under the assumption that America was the place to be because of the reconstruction era and the railroads. The “American Ideal” was somewhat of a light at the end of the tunnel, and many wanted to take advantage of opportunity. Some became farmers and some worked in the railroads, and other manual labor. This was unfortunate because unbeknownst to them, America (the republican party) was not yet ready for all of the aspirations they had. Not yet ready to establish the credit market and without having the knowledge to manage time with supply and demand – as far as food, caused a major crash in
In 1869 the railroads were completed, and was thought to be a stepping stone in American life. Although this was a historical event, the after-math of the railroads would affect the economy in a great way. Head officials and other non-producers were part of The Credit Mobilier scandal of 1872, which manipulated taxpayers and bullied them out of their fair share of land. Yes, some did get to keep their farms and stay on the land they thought was theirs, but in the end most ended up indebted to the government, which caused a downward spiral financially in the economy. Also after the railroads were built the need for steel and iron were not so much in demand and this caused many railroads and banks to go bankrupt.
In my opinion, the immigrants also caused the 1873 depression. The Chinese, Polish, and Irish were all under the assumption that America was the place to be because of the reconstruction era and the railroads. The “American Ideal” was somewhat of a light at the end of the tunnel, and many wanted to take advantage of opportunity. Some became farmers and some worked in the railroads, and other manual labor. This was unfortunate because unbeknownst to them, America (the republican party) was not yet ready for all of the aspirations they had. Not yet ready to establish the credit market and without having the knowledge to manage time with supply and demand – as far as food, caused a major crash in