Economic Crises: 1873 vs 2008

The video discusses the economic hardships of the Panic of 1873, triggered by the bankruptcy of Jay Cooke and Company, which led to a domino effect causing bank failures and the closure of the New York Stock Exchange. The contraction of the money supply by President Ulysses S. Grant and the printing of greenbacks further exacerbated the situation. The panic resulted in significant wage cuts, unemployment, and business failures. A comparison is made to the 2008 recession, highlighting similarities in job losses. By 1879, signs of recovery appeared, but the economy still bore the effects of the panic.

What major project was Jay Cooke and Company heavily invested in after the Civil War?

• The Transcontinental Railroad

• The Northern Pacific Railway

• The Erie Canal

• The Panama Canal

What significant event occurred on September 18th, 1873, that triggered a financial crisis?

• The New York Stock Exchange was established

• A major earthquake hit the East Coast

• The U.S. declared war on another country

• Jay Cooke and Company declared bankruptcy

How did President Ulysses S. Grant's monetary policy contribute to the economic crisis?

• He invested heavily in foreign markets

• He abolished the use of greenbacks

• He increased the money supply, causing inflation

• He contracted the money supply, leading to high interest rates

What was one of the consequences of the high interest rates during the financial panic?

• Increased foreign investment

• Businesses could not afford to invest

• A decrease in unemployment

• A boom in the housing market

What was the primary backing for the greenbacks printed during the Civil War?

• Government trust

• Real estate assets

• Gold and silver

• Foreign currency reserves

What was the impact of the financial panic on wages and employment?

• Unemployment decreased significantly

• Wages increased by 25%

• There was no impact on wages or employment

• Wages fell by almost 25% and unemployment rose

Which industry experienced significant wage cuts leading to a strike in 1877?

• The steel industry

• The textile industry

• The coal mining industry

• The railroad industry

How does the financial panic of 1873 compare to the economic recession of 2008?

• Both resulted in significant job losses in key industries

• Both were caused by natural disasters

• Both were triggered by a major bank's bankruptcy

• Both involved a collapse in the housing market

By what year did the United States begin to see signs of economic recovery after the panic of 1873?

• 1881

• 1879

• 1877

• 1875

What was one of the lingering effects of the financial panic of 1873?

• A complete recovery with no lasting effects

• A permanent increase in the value of greenbacks

• A long-term decline in the stock market

• Continued economic instability