Economics
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Q1. ‘Black Wall Street’ Movement
‘Black wall street’, formerly known as Greenwood neighborhood was a location in Tesla Oklahoma. In relation, Africa Americans were prospering in this area the earlier 20th century. These individuals had a self-sufficient district which was prosperous in business. Additionally, the action was contrary the beliefs of many individuals at the time as the Americans believed that black individual did not have the capacity to engage is activities like business and end up successful. In this regard, the section will expound on various aspects of the ‘Black Wall Street’ movement.
Historically, most African-Americans individuals were servants for the whites in Tulsa. As a result, they ended up creating a society and economy of its own. In 1905, the African-Americans possessed the land and established business in the area. Additionally, they were prosperous in business which led to attraction of agents in real states, Doctors and there were even establishment of schools (Purakayastha, 2016). In return, the area formed a group of prosperous African-American society with a thriving economy which was referred to as the ‘Black wall street’.
The area was successful in economic activities until the 1921’s riots. In relation, the riot affected negatively most individuals who were operating businesses in the area. There was also destruction of many business and homes for the locals. However, African-American entrepreneurs and other professionals-initiated reconstruction activities. Additionally, the lawyers offered assistance to the victims of the riots who were in jail (Purakayastha, 2016). They also advocated for reconstruction of the district which was completed in 1922 without the aid of Tulsa community. By the end of the year. There were about 80 businesses in the area.
The community was successful in business and even survived the great depression. Consequently, the area had a business college, attracted a lot of upper and middle class African-American Individuals and had a political representation. In1950s there was closure of many businesses which paved way for the entry of white individual’s businesses. Africa-Americans individuals were making investments outside Greenwood (Purakayastha, 2016). These factors contributed to the end of black wall street which had dominated the area. However, there was construction of a cultural center in Greenwood which acted as a tourist attraction. Besides addressing the culture of African-Americans, it plays an essential role of creating harmony in race relations in the area and preservation of black wall street.
In conclusion, ‘black wall street’ movement was a successful group of individuals whom to some extent contributed to growth of Greenwood. Additionally, the success in economic activities led to thriving of African-Americans in various ways. These include business success and existence of social amenities hence improving their standards of living. Additionally, the existence of a memorial in Greenwood helps in remembrance of the individuals who lost their lives in 1921’s riot.
Q2. Railroads change of America Economic Landscape
Before the construction of Railroads, there individuals encountered various challenges in transport. Such challenges include taking a lot of time while travelling form east to west coast and using unsafe modes of transport such as use of wagon for transport. However, the construction of the railroads led to numerous merits to America (Kiger, 2019). As a result, the section will expound on the impact of railroads on American’s economic landscape.
The railroads increased commercial activities in America. By 1980, there was transportation of commodities worth more than $50 million from the transcontinental railroad. Besides, it facilitated transport of raw materials, food crops and manufactured items to both coasts in the East and West. Additionally, it played an essential role in facilitating the international trade (Kiger, 2019). The action help in tracking the transport of items such as Japanese tea. Also, it helped in making transport to be affordable, facilitated to immigration and contributed to capitalism. These activities contribute to trade which makes positive impact to the economy.
In conclusion, the trade roads had an essential role in changing the landscape of the American economy. As a result, it was possible for the country to engage in activities which it could not participate in before its construction. Such activities include transport of people and commodities of trade which led to increase in economic activities.
Q 3 Monopolies and Economic growth
Monopolies are business that exists as the only sole provider of particular goods or services. As a result, the factor gives the monopoly significant competitive advantage over other organizations venturing into the market to provide similar goods or services (The Balance, 2017). Additionally, organization may become monopolies by vertical or horizontal integration which helps the organizations to remain the only operators in the business and eliminate their competitors. In this regard, this section will expound on how monopolies can hinder or encourage economic growth.
There are various ways monopolies help in the growth of the economy. On way is that it facilitates constant delivery of services or commodities that require higher costs to produce. These may include services like electricity which is essential for various production activities. Additionally, monopolies help in provision of goods or services that other organization have failed. For example, it may be difficult for other firms to establish power plants (The Balance, 2017). As a result, existence of a monopoly may contribute to provision of essential necessities such as electricity.
However, monopolies may also negatively impact the economic growth. The action may result as there may lack competition in the market hence leading to production of substandard goods. Monopolies may be the price setters for the commodities or services they produce hence leading to possible price exploitation (The Balance, 2017). Additionally, it may contribute to inflation and prevention of innovation and invention hence leading to a decline in economic growth.
In conclusion, existence of monopolies in the market may affect the organizations in various ways. These may include effects that can positively and negatively impact the economy. Monopoly may lead to production of items other organizations may fail to produce hence impacting on economic growth. On the contrary, it may hinder invention and innovation, lead to inflation and production of substandard commodities hence leading to decline in the economic growth.
Q4. Great Depression.
The great depression was a period of the longest economic downtown in the US. It occurred in the late 1920’s and early 1930’s. There are various causes of the great depression. One of the causes what the crash of the stock market in 1929. Many individuals had invested in the stocks due to their promising returns of the investment. However, the decline of the stock market led to various impacts such as joblessness and reduced productions of industries.
Another factor was monetary contraction and bank panics between 1930 and 1932. The clients of the banks were fearful of their banks solvency hence attempted to withdraw their money in cash (Britannica, 2017). The action led to decrease in amount of money available for lending by banks hence leading to depression. The impacts of the gold standards and decrease in lending and tariffs are other factors that contributed to the great depression.
Various economic policies in the US helped the country to get out form the great depression. These include the actions that president Roosevelt took to ensure the economy gets back to normal. The action involved closure of the banks for some time which led to ultimate closure of weak banks and opening of banks that were stable (Britannica, 2017). Additionally, there was provision of subsidies to the agricultural sector that allowed increase in the agricultural output in the country. Besides, installation of effective measures and labor acts helped in curbing unemployment cases. Other factors that facilitated economic stability include provision of financial support to disabled and minor individuals, regulation of industries to limit unfair competition and effective organization of labor in the country.
Q5. Post-war monetary policy
The progression of the post war monetary policy involved various steps. One was raising of the bank rate from 2% to 2.5% in 1951. As a result, it marked the first increase since 1932. Additionally, it was further increased by 1.5% making it to reach 4% in 1952. Also, there was unpegging of the rate of the treasury bill in 1951 which resulted to its increase to 2. 49% by 1952 (Milton & Michael,2017). Additionally, this factor led to the benefit of individuals engaging in short-term borrowing.
In 1951, there was a treasury bill worth £1000 million for exchange for use in funding of the stocks. In this regard, the existence of this activity led to mopping up of excess reverses from the banks in the form of quick assets (Milton & Michael,2017). During the period, there was a decision to raise the interest for the loans that the loan board for public works to the local authorities. However, the effect of the action was an increase in subsidies for housing activities.
The progression progresses this way to combat various issues that were affecting monetary activities. The issues were to allow an increase in the bank deposits which resulted from then increase of the yield of bank assets (Milton & Michael,2017). Additionally, it was possible to reduce inflation in the economy by increasing the interest of lending funds. Additionally, the progression impaired the ability of the banks to lend through reduction of their excess reverses.
References
Causes of the Great Depression. (n.d.). Encyclopedia Britannica. https://www.britannica.com/story/causes-of-the-great-depression
Kiger, P. J. (2019, September 4). 10 ways the transcontinental railroad changed America. HISTORY. https://www.history.com/news/transcontinental-railroad-changed-america
Milton, F., & Michael, D. B. (2017). Post-war trends in monetary theory and policy. The Optimum Quantity of Money, 69-80. https://doi.org/10.4324/9781315133607-3
Purakayastha, A. S. (2016). Occupying political science: The occupy Wall Street movement from New York to the world. Social Movement Studies, 16(2), 262-264. https://doi.org/10.1080/14742837.2016.1185359
What are monopolies and how do they impact the economy? (n.d.). The Balance. https://www.thebalance.com/monopoly-4-reasons-it-s-bad-and-its-history-3305945