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nikitadnepr [17]
3 years ago
11

What does contractionary fiscal policy do to economic growth?

History
1 answer:
Sidana [21]3 years ago
6 0
A it depends I believe is correct answer
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Expert Answers info

Queen Langosh eNotes educator | Certified Educator

First, we should be clear about the nature of the industrial boom that occurred in the wake of the Civil War. It was the rise of heavy industry and the production of capital goods that characterized the early phases of industrial growth during this period, and by far the biggest factor contributing to growth was the expansion of the railroads.

Railroads expanded exponentially after the Civil War, and their rapid spread facilitated and spurred industrial growth in several ways. They led to a demand for coal, timber, and especially steel, the most important commodity in this new industrial age. They connected markets, enabling businesses like the meatpacking industry to rapidly increase distribution and production. Moreover, their corporate structures formed a paradigm and a model for other industries.

In addition to this new industry, which spawned many others, industrialization was fueled by the massive influx of immigrants from Europe and elsewhere that provided a large industrial labor force. Another factor was the rapid proliferation of new technologies, a cause and an effect of industrial development. Electric light, assembly lines, the Bessemer steel process, and the telephone were just a few of the myriad innovations that helped spur industrial growth.

A final, often-overlooked factor contributing to industrialization was the role played by the federal government. In the wake of the Civil War, the government spurred the growth of railroads by setting aside massive grants of land, providing subsidies, and other measures. The government also established high tariffs and created a generally pro-business economic climate that facilitated industrial growth.

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