The American economy as it is in the present was shaped by the occurrences of history, especially during the post-civil war period. Many events of industrialism and developments that occurred after the war led to a revolution in the economy of New York and America in general. This paper explains the events that occurred after the war and the impacts that they brought in New York. The merging of different states to give New York is profiled, and the industrialization and the research of the period are described. Capitalism issues are also addressed. The formation of labor unions is also outlined which was to counter different capitalism effects. The great depression of 1929-1930’s is also explained and its effects outlined. The First World War and its effects on New York are also explained.
The post-civil war period
The economic aftermath of the American Civil War (1861–1865) is mainly because of the Northern control of the federal government during and after the war. The American civil war occurred during 1861-1865. The then-president Abraham Lincoln on January 1 1863 issued the Emancipation proclamation, where slaves were freed in all rebelling confederation states this led to the civil war. During the war the majority of whites in New York stayed in New York to protect their properties, the war brought economic hardships and a high rate of unemployment of the blacks and Irish workers.
Four legislation passed during the civil war were critical to the economic development; these legislations included; the Morrill Tariff of 1861 which raised rates to 20 percent on average and ended the over thirty years of declining rates, the Morrill Land Grant Act (1862) which established agricultural and mechanical colleges by allotting state in the Unions large tracks of land, the National Bank Act of 1863 which established standards for the banking industry, and the Homestead Act of 1862 which gave free quarter section in western territories to those who settled there for five years and were interested in being citizens (Civil War, Economic Impact of (Issue, 1999). The wartime impacts of the south where the war destroyed much wealth in the south hence the north was favored for economic growth. The economy in the post-Civil War was favored by the construction of railroads which connected the industrial cities of the northeast and the agricultural areas of the Midwest and the plains.
The modern New York was formed in 1898, from the merging of five separate jurisdictions which were Manhattan, Staten Island, Brooklyn, Queens, and the Bronx, which came together to form a new municipal known as the Greater New York. Brooklyn Township was formed from the city of Brooklyn together with other municipalities for the east like Kings County, and New York. The Queens Township was a merger of Queens County (Nassau County) and Richmond County. This led to the abolishment of all county towns and city municipal governments (Burrows, & Wallace, 2000 p.1222). The merging of these townships increased trade and had fewer administrative rules which favored the development of the city to what is being seen today.
This post-civil war economic reconstruction period was referred to as the Gilded Age where the economy relied on industries and population for growth. This led to capitalism where the whites were the industrialist and financiers while the minority who included the blacks, Hispanics, and the natives provided labor. During the 1880 period, New York City was then filled with immigrants reaching approximately 1.9 million who had immigrated to America in search of a better life. This immigration caused more upheavals and Tammany hall was exploited by corruption and bad governance which saw the state experience economic segregation due to social exclusion (Burrows & Wallace, 2000, p.1088). Capitalism was also present as the city was controlled by “60 percent of the leaders of New York’s national corporations, investment banks, and railroads were descendants of old-moneyed families” (Burrows, & Wallace, 2000 p.1083). various cities including New York, Brooklyn, and Jersey City merged to form the Central Labor Union (CLU) which introduced various regulations and policies that included introducing eight-hour workday, illegalizing child labor, establishing policies on equal pay for equal work, government-issued currency to eliminate the then bank-issued currency, abolishing the tramp laws and enforcing the end of class privileges (Burrows & Wallace, 2000 p.1098).
The immigrants were mistreated and exploited and they used to provide cheap labor. Crime prevailed in the city and the then American Protective Association was never effective and was overpowered. This crime rate affected people’s stays but never stopped the many innovations and developments of New York.
The civil war led technicians and innovators to revolutionize many industries by 1870. Many scientists began working in collaboration to produce inventions. Inventions of that time include the modern steel mills, the first electric bulb, drilling and extracting oil from the ground. Emphasis was put on research through the provision of subsidies to the Universities leading to increased innovations and opportunities for development. Economies of scale led to the establishment of huge industries, increased labor supply, and urbanization while the high population led to mass consumption and increased advertisement. The late nineteenth and early twentieth century gave more development in terms of economic, political, and social developments. The industrial revolution of this period increased in trends and can be traced as the start of the matrix of the present New York.
In 1900, New York heat and Power Company started lighting the city gas and electric light was incorporated into the economy. Advancement of the fire department, building codes, and workplace occurred following the disasters of the fires that erupted in 1904 and 1911 which left many dead. New transportation systems e.g. the subways were established in 1904 (commonly known as the Inter-borough rapid transit) and also railroads that operated from Grand Central Terminal to Pennsylvania came alive during this period. In the 1920s the City saw many African American immigrants from the south and the Harlem Renaissance, an age that witnessed the construction of the skyscrapers as viewed in the current New York City. During this period, the city grew in terms of industry, commerce, and communication although crime also rampantly increased parallel to the economic development.
Post World War 1
Growth was however reduced by the First World War since many trade routes were closed, and the Immigration Restriction Act led to less immigration which meant the absence of cheap labor. The great depression which occurred in 1929-1930’s was an economic crisis that hit the world and New York was not spared. It led to the crash of the stock markets and affected the economy adversely with the personal income dropping, tax revenues of the state dropped, profits also dropped, unemployment increased, and led to reduced trade. After the end of the recession, significant growth related to the investment in the post-civil war started emerging and increasing.
Although New York was hit by the great depression, major developments were witnessed after the depression. The civil war severely affected the capitalist in New York, but it led to more innovations that shaped the future of the US. The effects of the civil war were expected to reduce development in New York but as viewed above, the war acted as a turning point to the city and the whole nation. Although it led to more capitalism with the whites claiming most of the properties, the wise invested heavily to boost growth and development. If this period never occurred, then the American dream could have just been a vague dream and maybe America of today could not be a superpower. New York has continued to be a perfect example in industry, commerce, and communication since this period.
References
Burrows, E. G. & Wallace, M. (2000). Gotham: a history of New York City to 1898. London: Oxford University Press US. Web.
Civil War, Economic Impact of (Issue). (1999). Gale Encyclopedia of U.S. Economic History. The Gale Group Inc. Web.