High School U.S. History Study Guide for the STAAR test

Economic, Science, Technology, and Society

Another 16 questions on this test will ask you about economics, science, technology, and society. You will need to tell how these topics have influenced society over time.

Economics: 1870s to 1920

Largely known as the Gilded Age and then Progressive Era, many changes in economics and business took place over this period. The country was expanding westward and industry was evolving with the continued adoption of new technology. For the most part, business was good and the economic base of the country was expanding.

The Frontier Closing

Developments over this period led to the shrinking of the frontier. As new transportation systems connected the country, more people settled the west, and the frontier slowly disappeared.

Transcontinental Railroad—rail line running across the country connecting the east and west coasts

The Homestead Act—granted land to people who would move west and improve the land by farming and building structures, consequently settling the west

Federal Government and Private Businesses

Business in the U.S. has historically enjoyed little government regulation. However, during this period, some big businesses became corrupt and monopolies formed. Government policy had to act in order to keep business in check.

Laissez-faire—government policy set forth by the Founding Fathers that the government would have a hands-off approach to economics and business in the country

Anti-Trust acts—a series of laws that attempted to prevent any one company from controlling the market and becoming too powerful, or a monopoly

The Interstate Commerce Act—law passed to regulate the railroad industry and break up its monopoly

The Pure Food and Drug Act—prevented the production and sale of mislabelled or tainted food and drugs

Foreign Policies

Foreign policy refers to how the U.S. interacts with other countries and people coming into our country. These policies impact economics through labor, trade, and foreign markets.

Chinese Exclusion Act of 1882—limited the number of immigrants that could enter the U.S. from China. During the construction of the transcontinental railroad, many Chinese immigrated for work.

The Open Door Policy—allowed for equal trade with China among foreigners and the preservation of Chinese authority in their own country

Dollar Diplomacy—expansion of U.S. trade in Latin America and East Asia through the provision of loans to countries in those regions

Immigration Quotas—limits set on the number of immigrants from specific regions allowed into the U.S. These quotas for different regions varied over time.

International Military Conflicts

The following wars during this period greatly impacted economics, especially in terms of the cost of funding a war. Both opened economic opportunity after the war, though.

Spanish-American War—war during which the U.S. gained many territories and invested in a powerful navy that would prove to be effective in opening up more trade around the world

World War I—costly war in terms of finances and lives but led to a prosperous economic climate in the U.S. during the 1920s

Emergence of Monetary Policy

As our country grew and became more powerful economically, the government needed to pass laws to regulate and protect American business.

Federal Reserve Act of 1913—created the Federal Reserve, or the central bank of the U.S., to regulate and stabilize the economy

Shift from Gold Standard to Flat Money—change from money being backed by gold to being backed by the government

Economics: Between World Wars I and II

Economics varied greatly between the world wars. Immediately following WWI, the U.S. experienced economic prosperity in the 1920s followed by depression in the 1930s.

Growth and Prosperity in the 1920s

The following are all factors contributing to the prosperity of the 1920s. Overall, the health of the stock market and the increase in consumption of American-made goods were driving forces behind the Roaring 20s.

Warren Harding’s Return to Normalcy—occurred when Harding won the election of 1920 and promised a return to pre-war thinking; marked the beginning of increased consumer spending as the fear of war was lifted

Reduced Taxes—taxes cut drastically in the 1920s which left people with more money in their pockets to spend on consumer goods

Increased Production Efficiencies—as companies found ways to increase efficiency (like the assembly line style of production), prices for goods dropped and sales increased

Causes of the Great Depression

The Great Depression was characterized by high rates of inflation, unemployment, and overall low confidence in the economy. Here are a few specific causes of the depression.

Tariffs—specifically high tariffs (tax on imports) that caused a decline in global trade, which also led to fewer sales and less economic growth

Stock Market Speculation—occurred when the success of the 1920s led to a drastic rise in stock prices but the growth was not sustainable and eventually people panicked when it began to drop

Bank Failures—spurred by the success of the 1920s which led to increasing use of credit; followed by banks failing when people were not able to make the payments on their loans; panic of people who withdrew their money in fear that the banks would lose it

The Federal Reserve’s Monetary Policy—result of the market crash; people held their money and spent less; the Fed failed to take corrective action to this constriction and matters just got worse

Effects of the Great Depression

The Great Depression was characterized by high unemployment rates and falling income levels across the country.

Widespread Unemployment—rates as high as 25% during the 1930s

Deportation and Repatriation—many people considered “non-native” to the U.S. forced out of the country during the Great Depression because these groups were seen as taking jobs and opportunity from Americans born here; actions are often looked back on as racist and controversial

The New Deal

FDR announced the New Deal as a government spending program to pump money back into the economy and get people back to work. Opponents argued this would only make things worse as the country’s economy depended upon free enterprise.

Far-Reaching Effects

Several agencies and programs created through the New Deal have had long and far-reaching impacts since the Great Depression. These programs were created to provide immediate and temporary assistance to needing Americans during the Great Depression.

Federal Deposit Insurance Corporation (FDIC)—insured bank deposits in the event of a bank failure so that the average citizens were guaranteed their money up to a certain amount (it has been changed several times) in the event of a bank failure

Securities and Exchange Commission (SEC)—reformed the stock market and the agency now works to protect investors and investments in the stock exchange to prevent any future crashes

Social Security Administration (SSA)—enacted to provide immediate relief payments to families, now provides assistance payments to retired and disabled persons

The Economics of World War II and the Cold War

WWII helped the U.S. economy greatly. Gearing up for war increased government spending for war machines and put many women to work in factories as many men volunteered to serve in the military. After the war, the U.S. economy once again experienced high rates of growth and economic prosperity.

World War II and the Home Front

The war marked the end of the the Great Depression. It put Americans back to work in massive numbers in factories and farms for the war effort. Everything was used as scrap drives and rations for the war effort were embraced by all. Finally, great numbers of women went to work as many men joined the military.

Prosperity in the 1950s

After WWII, the U.S. economy boomed as soldiers came home from the war, started families, and bought homes and other consumer goods.

Causes—As soldiers returned home from the war, they were granted benefits like the GI Bill, which helped pay for education, housing, and unemployment insurance. Many soldiers used their benefits to buy homes and cars as they settled down and started families. This consumer spending led to economic growth and prosperity.

Effects—The post-WWII period is often referred to as an age of mass consumption because of the economic growth and American spending on homes, cars, appliances, and family items. At the same time, agriculture underwent great changes as new technology led to higher crop yields. Increased food production ultimately gave rise to new businesses like the fast food industry.

Defense Spending

During the Cold War, the U.S. government invested a lot of money in defense and research. Aerospace technology and science education became priorities during this era as the U.S. attempted to stay ahead of the USSR in the space race and arms race. This government spending led to the success of private businesses in these industries.

The Government and the Private Sector

During this period, the government took several actions to provide economic opportunities and a better life for citizens.

The “Great Society”—a large social welfare program of the Johnson administration with the main goal of eliminating poverty and racial injustice; largely successful in reducing poverty; critics argued it was expensive for the government and made people dependent upon the government

Affirmative Action—policy favoring people who suffer from discrimination; led to the equal opportunity laws that attempt to prevent any bias in the hiring process

Title IX—prohibits discrimination on the basis of sex in federally funded educational institutions

Trade Policies and the Free Enterprise System

The following policies attempt to regulate and encourage trade. Trade is closely related to free enterprise economics as countries and businesses thrive on being able to trade freely on the world stage.

The Organization of Petroleum Exporting Countries (OPEC) Oil Embargo—sets production and price for oil worldwide; in the 1970s, OPEC restricted production and trade of oil to the U.S., resulting in shortages, high prices, and long lines at gas stations

The General Agreement of Tariffs and Trade (GATT)—originally created in 1948 to regulate world trade; since has been replaced by the World Trade Organization (WTO)

The North American Free Trade Agreement (NAFTA)—eliminated tariffs on trade between the U.S., Mexico, and Canada

Worldwide Interdependence and the Twenty-first Century

Understand that many countries today are interdependent to be successful and prosperous. Countries depend on each other for goods and payments that they cannot provide themselves. No country is truly self-sufficient in the globalized economy of the world today.

American Entrepreneurs

Entrepreneurs are people who start businesses. This is a very short list of the many successful entrepreneurs in the history of the U.S.

Bill Gates—founder of Microsoft

Sam Walton—founder of Walmart

Estée Lauder—successful woman, founded the company bearing her name, which produces and sells cosmetics

Robert Johnson—African American businessman, founder of Black Entertainment Television (BET)

Lionel Sosa—successful Mexican-American advertising and marketing executive

International Influences

Because the world economy is so interconnected, international events drive economics. If tragic events or wars take place in various locations around the world, economics and trade is impacted accordingly.

Economical Effects of Science and Technology

Science and technology have driven the free enterprise system in the U.S. Because the government has historically had little influence on business, businesses are free to innovate and compete with each other for sales. This innovation to beat the competition has been the driving force behind the constant improvement and continued economic development of the U.S.

Inventions and Innovations

New inventions and innovations like electricity, telephones, cars, and computers have drastically improved the economic development of the U.S. These are all examples of new innovations that became popular and ultimately necessities in society. As they became household items, more people bought them, which drove the economy and improved the standard of living in the country over time.

Needs Drive Discoveries

Most innovations come from figuring out a way to meet a need. Many technological discoveries are made during times of war as a country defends itself. New weapons technology or scientific research can often be modified to meet needs in other fields like agriculture and medicine.

Effects on Productivity

Over time, production in factories improved as new technology was introduced to the process. As innovations like the assembly line, just in time delivery, robotics, and computer technology permeated industry, production increased as cost and the need for workers decreased. This led to people needing more education to do higher skill jobs.

A New Standard of Living

As new scientific discoveries and technological advances are made, the standard of living in the United States increases. The competition of businesses in the free enterprise economy drives this innovation. Companies compete for your business, and they constantly try to innovate to make a better product than their competitor. This leads to better products, lower prices, and an overall higher standard of living.

Inventions and Innovations

Innovation in transportation and communication technology have greatly impacted the standard of living in the U.S. First railroads, then cars, and finally airplanes have made transportation much faster and easier. The telegraph, telephone, and now Internet have made communication much faster and easier. These changes improve life through the ease of transportation and communication. We can travel further easier and talk to people from very far away easier.

Space Technology and Exploration

The improvements in space technology and exploration have improved the quality of life through the improvement of air transportation and satellite communication technology. Simple things we take for granted, like GPS directions, were made possible through space technology and exploration.

The Free Enterprise System

The competition in the free enterprise marketplace drives innovation as companies compete with each other for your business. This has led to the affordability and increased choice of different cell phones, computers, and other devices like GPS products. We have the free enterprise economic system to thank for the availability and affordability of our everyday electronic devices.

Social Studies Skills

Sources of Information: You will be expected to apply these skills concerning information use.

• Use a variety of sources.

• Analyze the information from these sources by employing sequence, categories, cause and effect, comparison, contrast, main idea, summary, generalization, prediction, inference, and conclusions.

• Employ the historical inquiry process while researching, interpreting, and using evidence from various sources.

• Connect a point of view to historical evidence.

• Gain and interpret information from visual and auditory sources, including graphs, maps, speeches, lectures, and political cartoons.

Communication: You will need to explain social studies concepts using correct terminology.

Geographic Tools: You will need to ask and answer geographical questions concerning distribution and patterns using charts, maps, graphs, and databases.