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Extra resources for Macroeconomics (9th Edition)
Certainly that is a fair description of the 1990s, but one may ask if other decades—the 1920s and the 1960s—might be similarly described. Perhaps judging the appropriateness of the term “new economy” might best be left to the economic historians of the future. But new or not new, the 1990s will surely go down in history as one of the most prosperous decades since the founding of the republic. The new economy could trace its beginnings back to the late 1970s when the federal government began an era of deregulation, giving the market forces of supply and demand much freer reign.
The National Railroad Network The completion of the transcontinental railroads The completion of a national railroad network in the second half of the 19th century made possible mass production, mass marketing, and mass consumption. In 1850, the United States had just 10,000 miles of track, but within 40 years the total reached 164,000 miles. The transcontinental railroads had been completed, and it was possible to get virtually anywhere in the country by train. Interestingly, however, the transcontinental lines all bypassed the South, which severely retarded its economic development well into the 20th century.
As these companies went public, their founders became not just millionaires, but often instant billionaires. ” History has certainly proven Luce right. Not only had American soldiers and economic power won World Wars I and II, but we also contained communism from the mid-1940s through the 1980s. With the collapse of the Soviet Union, we were the only military and economic superpower left standing. Just as no man is an island, there are no longer any purely national economies. As we’ve seen, the United States, which began as 13 English colonies, expanded across the continent, attracted tens of millions of immigrants, and eventually became an economic superpower, importing and exporting hundreds of billions of dollars of goods and services.