Timeline of all major US financial events in history
Here are some of the most influential financial events in US history, each described in more detail:
1792: The US government establishes the US Mint and adopts the gold standard, which sets the value of the US dollar to a specific amount of gold. This marks the beginning of a formal monetary system in the US and helps to stabilize the value of the dollar.
1817: The Second Bank of the United States is chartered, marking the beginning of a central banking system in the US. The Second Bank is intended to serve as a lender of last resort and help to stabilize the financial system.
1837: The Panic of 1837, a financial crisis triggered by a collapse in land prices and bank failures, leads to a recession. This crisis highlights the need for better regulation of the banking system and stronger oversight of financial institutions.
1862: The US government issues paper money for the first time, known as "greenbacks," to finance the Civil War. This marks the beginning of a fiat currency system in the US, in which the value of money is not tied to a specific commodity like gold.
1873: The Panic of 1873, a financial crisis triggered by a collapse in railroad overbuilding and speculation, leads to a recession. This crisis demonstrates the risks of excessive speculation and the need for better regulation of financial markets.
1907: The Panic of 1907, a financial crisis triggered by a collapse in the stock market and bank failures, leads to a recession. This crisis leads to calls for reform and greater regulation of the financial system.
1913: The Federal Reserve Act is passed, establishing the Federal Reserve System as the central banking system of the US. The Federal Reserve is intended to serve as a lender of last resort and help to stabilize the financial system.
1929: The stock market crashes, triggering the Great Depression. The Depression, which lasts for more than a decade, has a major impact on the global economy and leads to significant changes in economic policy and regulation.
1933: The US government establishes the Securities and Exchange Commission (SEC) to regulate the stock market. The SEC is intended to protect investors and ensure the integrity of financial markets.
1934: The US government establishes the Federal Deposit Insurance Corporation (FDIC) to insure deposits in banks and other financial institutions. The FDIC is intended to help stabilize the financial system and protect consumers in the event of a bank failure.
1971: The US government ends the convertibility of the US dollar to gold, effectively ending the gold standard. This marks the end of a formal link between the value of the dollar and the price of gold and allows the US to pursue more flexible monetary policy.
2008: The global financial crisis, triggered by the collapse of the housing market and the subprime mortgage industry, leads to a recession. The crisis has a major impact on the global economy and leads to significant changes in financial regulation.
2010: The Dodd-Frank Wall Street Reform and Consumer Protection Act is passed, introducing new regulations on the financial industry in response to the financial crisis. The Act is intended to increase transparency and reduce the risks of another financial crisis.
Each of these events has had a significant impact on the financial system in the US and has shaped the way that the economy has developed. The gold standard, the establishment of central banking, and the adoption of fiat currency have all had major implications for the value of money and the stability of the financial system. Financial crises and recessions have also had major impacts on the economy and have led to calls for reform and greater regulation of the financial system. The creation of institutions like the SEC and the FDIC have helped to protect consumers