THIS DAY IN ECONOMIC HISTORY
August
Boeing Gets Even Bigger
Boeing purchased its archrival McDonnell-Douglas and became the nation's leading commercial aircraft manufacturer; an unlucky series of events caused a downturn, however.
5th Avenue
On this day in 1824, America's most fashionable street started as a residential area. Fifth Avenue is now known for its upscale and posh businesses such as Tiffany's and McCreery's.
Labor Takes A Hard Hit
On this day in 1981, 13,000 members of the U.S. Professional Air Traffic Controllers Organization (PATCO), tired of working long hours with obsolete equipment, decided to go on strike. President Reagan threatened to fire any striker still on the picket line through August 5th. Many strikers stood their ground and the President made good on his word, firing 11,500 strikers. Replacement were rounded up, trained, then quickly installed in the vacant posts. These actions were a hit to organized labor and caused employers to become bolder in their actions against union activity.
Unions Strike Back
On this day in 1997, organized labor struck UPS with a successful strike after a series of defeats in the 1980s. Trying to get a better pension and a cap on part-time employees strikers were able to successfully get the parcel company to agree to their demands by causing the company's sales volume to drop 8 percent.
The Baby Bells
On this day in 1983, the baby Bells were formed. The baby Bells is a term that was coined after a court ruling forced telecommunications giant AT&T to split its monopolistic hold on the country into seven regional service providers. The ruling caused AT&T's assets to shrink from $149.5 billion to $34 billion and its workforce to shrink from 1.9 million workers to 373,000.
Apple Blossoms Once More
On this day in 1997, computer software giant Microsoft bought a minority stake in the struggling computer company Apple. Until this $150 million dollar purchase Microsoft and Apple were considered to be enemies. Apple CEO Steve Jobs initially endured a chorus of boos for his actions, but Apple has gradually made a comeback through the years and with the sales of the popular iPod, Apple is once again out of the red.
The Dollar Downsizes
On this day in 1928, the dollar shrank. The reduction of the dollar was not a reduction in value, but rather a reduction in size. The new notes issued by the United States' Treasury were 1/3 the size of their predecessor. A year later the treasury shrank the dollar by another 25%.
Market Reacts To Announcement
On this day in 1974, with the announcement of President Nixon's resignation, the stock market took a hit. The market lost 12.67 points with the speculation that Nixon's successor, Gerald Ford, would not be able to turn around the country's recent economic downturn.
Beginning Of The Fall
On this day in 1929 the New York Bank raised the rediscount rate to 6 percent on loans to brokers. This raise in the rediscount rate is seen as a precursor to the stock market crash that happened in October of the same year.
Netscape Has A Good Day
On this day in 1995 Netscape goes public with company stocks and in one day sells 5 million stocks originally slated at $28 a share to $72 dollars a share. By the end of the day the company was worth $1.96 billion. Netscape was the first company to successfully make the Internet accessible to the public with its easy to use Internet navigator. It didn't take long before other companies joined in on the Internet market and made their own Internet navigating programs accessible to the public.
Carnegie Dies
On this day in 1919, famed American industrialist Andrew Carnegie died. Carnegie was a true story of rags to riches. He immigrated to the United States from Scotland and worked in cotton factory. Through a series of good business decisions and a bit of luck Carnegie took over the steel industry in the later half of the 19th century. He controlled everything from the resources for making steel to the production of it. He was considered a tyrant by his workers, many strikes and riots occurred at his plants in response to the conditions they faced. Carnegie did do some good in his later life; planning to die penniless he burned through a large part of his fortune building, educational institutes and schools.
Enter The Personal Computer
Today we have come to expect a personal computer in every home, but before this day in 1981, nobody had a personal computer. IBM, on this day in 1981, started selling the world's first PC, selling 136,000 in the first year.
Kennedy And Keynes
President Kennedy announced an "across-the-board, top-to-bottom" tax cut for American citizens and corporations. This tax cut was an instant success for the popularity of the president and, depending on one's view, either a huge gift for the wealthy or a $12 billion boost to the economy. Kennedy's advisors drafted this tax cut using theories from the famed economist John Maynard Keynes.
Social Security Passed
On this day in 1935 the Social Security Act is passed and becomes one of America's most newsworthy bills. Social Security is a program that takes a certain percentage out of a workers paycheck to be put into a national pension that provides funding for retired people. Over the years, Social Security has collected $4.5 trillion and distributed $4.1 trillion to the nation's elderly.
Stock Market Closes For A Party
On this day in 1945 the stock market closed its doors to join the celebration of the end of World War II. The stock exchanged opened its doors once again on August 17th.
Steel Workers Get Eight-Hour Work Day
On this day in 1923, Carnegie Steel establishes an eight-hour workday for all of its steel workers. The late founder of this company was not always friendly to labor though. Many deadly strikes and riots against his company took place in the decade's prior.
United States Wartime Economy
On this day in 1939, the American economy started to get ready for wartime status. Initially, the stock market took a hit from fears of the German invasion of Poland, but soon the economy started to grow because of the millions of dollars spent on defense manufacturing and other defense programs. With all of the new products being made, the unemployment rate dropped significantly.
The New Bill
On this day in 1966, the first batch of new $100 bills was printed. This new bill featured the now familiar motto "In God We Trust."
Gold Rush Reaches East Coast
On this day in 1848, the New York Herald issued the announcement of the California Gold Rush. The original discovery was actually made in January but it wasn't until this day that the mass population heard about the discovery. The gold rush spurred many people to travel west to California in hopes of gaining a fortune.
Minimum Wages Rises
On this day in 1996, President Clinton approved a $0.90 hike in the nation's minimum wage. The increase, which brought the national hourly wage to $5.15 an hour, was the first such increase in five years.
The Good Times Roll To A Stop
On this day in 1987, the six-year bull market the New York Stock Exchange had enjoyed reached its height by topping out at 2772.4 points. The good times declined after this day and on October 19th the stock market lost a record-setting 508 points.
Clinton Cuts Down Bush
On this day in 1992, presidential candidate Bill Clinton started a series of sharp attacks aimed at President George H.W. Bush's economic record. Clinton went as far as branding Bush a "liar" for not keeping his pledge to not add any new taxes. Clinton went on to win the election in November.
Market Reacts To Iraqi Invasion
On this day in 1989, amidst fears of an Iraqi invasion of Kuwait, the Dow Jones takes a plunge, losing 76.73 points. This was a major blow to the market, which was on the verge of breaking the 3,000-point mark for the first time.
Labor Gains A Voice
On this day in 1827, the first issue of "The Mechanics Gazette" is published in Philadelphia. This issue marks the first time a labor-minded magazine is published in the United States.
Allan Pinkerton Born
On this day in 1819, Allan Pinkerton was born in Glasgow, Scotland. Pinkerton gained notoriety by starting a detective service based in Chicago that thwarted many train and bank robberies. Pinkerton, a staunch opponent of labor unions, quickly helped steel baron and fellow Scot Andrew Carnegie during the 1892 Homestead plant strike. Pinkerton provided a detachment of detectives to escort the replacement workers that the company hired to replace the strikers. Violence soon erupted and nine detectives were killed. Nineteen strikers were later hung for their part in the violence.
No More Dealing For Vesco
On this day in 1994 one of America's most notorious fugitives, Robert Vesco, landed in jail with a thirteen-year sentence for "economic crimes against the state." He defrauded Cuba's state run pharmaceutical agency during the development of TX. TX was deemed to be a "wonder drug" able to prevent both AIDS and cancer. He was also charged for trying to swindle mutual fund investors out of $224 million dollars. In the early 1970's the United States government indicted Vesco for illegally contributing to President Nixon's reelection campaign.
National Income Tax Emerges
On this day in 1894, income tax became a legislative issue in the United States Congress. The Wilson-Gormann Tariff was passed by the House of Representatives and attached to this bill was a passage relating to a national income tax. The Supreme Court later struck down the bill but it did put the idea of a national income tax on the legislative map. With the passage of the 16th Amendment in 1913 income tax soon became a part of American life.
OPA Is Formed
On this day in 1941 the Office of Price Administration (OPA) is formed by an executive order from President Roosevelt. The OPA was formed to combat the problems of higher prices caused by World War II. The OPA regulated rationing programs throughout the country and issued coupon books on the goods that were in high demand. This program didn't last long after the war however; big business and farmers both bristled at its imposed regulations on their products. Soon after the election of 1946 the OPA was relieved of its duty.
Bureau Of Engraving And Printing Is Formed
On this day in 1862 the Bureau of Engraving and Printing is formed. The Bureau of Engraving and Printing has the task of designing and printing the United States currency.
Lockheed Martin Formed
Lockheed and Martin Marietta picked this day in 1994 to merge into the world's largest aerospace/defense company. The company designed trademark aircraft as the SR-71, F-117A, and the new F/A-22.
Wall Street Gets New Rules To Follow
Wall Street traders had seen better days this one in 1939 when the Public Examining Board proposed a list of solutions to help safe guard consumers. The Board's fourteen recommendations ranged from full disclosure of brokerage firms' finances to beefing up the minimum capital requirements for commodity accounts. These rules were made to keep consumers safe but many in the business community were outraged and accused President Roosevelt's administration of being "anti-business."