Chapter 10 Essay

Chapter 10 Essay
Economy. Why is economy important or why is it used everywhere. Economy is what keeps a society running and making it a better place. Economy has existed since long ago.

Economy has been running since about 5,000 years ago, during the early West African societies. At a point Africa grew so much food that they had so much to survive with. So they decided to trade goods. They started to trade in area’s resources with buyers who lived thousands of miles away. But there would also be some complications sometimes. For example, supplies could run out, thieves could attack, and caravans could lose their way. A piece of evidence was found the 7th grade history book “Despite these dangers, West Africa’s gold and salt mines became a source of great wealth. Camels carried salt from the mines of the Sahara to the south to trade for gold. Traders then took the gold north, to Europe and the Islamic world. Along with gold and salt, traders carried cloth, copper, silver, and other items.” These are some basic examples of what formed economy and what runs economy.

In the year 1849 about 80,000 gold-seekers came to California, hoping to strike it rich, which were called the forty-niners. California had found gold and lead for the economy to have a big growth! In addition to rapid population growth, a flood of new businesses and industries transformed California’s economy. According to the 8th grade history book “Gold mining remained an important part of the state’s early economy. But Californians soon discovered other ways to make a living. Farming and ranching, for example, became industries for those willing to do the necessary hard labor. California faced an obstacle to growth, though.” The state was isolated from the rest of the country, and so it was complex to bring in and ship out goods. The answer to the isolation problem was to bring the railroad all the way to California. And the people who lived in California would have to wait almost 20 years for that. Completion of the transcontinental railroad in 1869 at last gave Californians the means to grow a stronger economy.

There is a lot happening today about economy. For example policymakers in the United States won’t hike until jobless rate slides to 6.5%. The economy is at a step but with the plan of making trillions of dollars then that will make economy problems and unemployment rate decrease. According to the IBD article “Fed to buy $1 trillion in asserts next year as it expands QE,” Jason ma “the federal reserve more than doubled the rate of its net bond buying and set guidelines for keeping interest rates near zero that explicitly tolerate short-term inflation about its two percent target.” So this article is basically saying that the U.S will not stop printing money until forever, they see improvement.

Bibliography:

Holt California Social Studies United States History: Independence to 1914 ©2006

Holt California Social Studies World History: Medieval to Early Modern Times ©2006

Investor’s Business Daily article

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