Expert answer:summary for economy class!!
Answer & Explanation:summary for chapter3, 4,5chapter 3: 150 wordschapter 4: 150 wordschapter 5:150 wordseach chapter should write 150 words, and the total is 450 words.History_of_American_Economy.pdf
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History of the American Economy
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History of the
American Economy
ELEVENTH EDITION
GARY M. WALTON
University of California, Davis
HUGH ROCKOFF
Rutgers University
History of the American Economy:
Eleventh Edition
Gary M. Walton and Hugh Rockoff
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© 2010, 2005 South-Western, Cengage Learning
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LEFT PHOTO: COURTESY OF DOUGLASS C. NORTH, WASHINGTON UNIVERSITY IN ST. LOUIS, RIGHT PHOTO: PETER KIAR/CHICAGO
Douglass C. North
Robert W. Fogel
In honor of our dissertation advisors,
Douglass C. North and Robert W. Fogel,
Nobel Laureates in Economics, 1993
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Brief Contents
PREFACE
CHAPTER
1
PART 1
Growth, Welfare, and the American Economy
The Colonial Era: 1607–1776
CHAPTER
2
Founding the Colonies
CHAPTER
3
Colonial Economic Activities
CHAPTER
4
The Economic Relations of the Colonies
CHAPTER
5
Economic Progress and Wealth
CHAPTER
6
Three Crises and Revolt
PART 2
The Revolutionary, Early National, and Antebellum Eras:
1776–1860
CHAPTER
7
Hard Realities for a New Nation
CHAPTER
8
Land and the Early Westward Movements
CHAPTER
9
Transportation and Market Growth
CHAPTER
10
Market Expansion and Industry in First Transition
CHAPTER
11
Labor during the Early Industrial Period
CHAPTER
12
Money and Banking in the Developing Economy
CHAPTER
13
The Entrenchment of Slavery and Regional Conflict
PART 3
The Reunification Era: 1860–1920
CHAPTER
14
War, Recovery, and Regional Divergence
CHAPTER
15
Agriculture’s Western Advance
CHAPTER
16
Railroads and Economic Change
CHAPTER
17
Industrial Expansion and Concentration
CHAPTER
18
The Emergence of America’s Labor Consciousness
CHAPTER
19
Money, Prices, and Finance in the Postbellum Era
CHAPTER
20
Commerce at Home and Abroad
PART 4
War, Depression, and War Again: 1914–1946
CHAPTER
21
World War I, 1914–1918
CHAPTER
22
The Roaring Twenties
CHAPTER
23
The Great Depression
CHAPTER
24
The New Deal
CHAPTER
25
World War II
vii
viii
Brief Contents
PART 5
The Postwar Era: 1946 to the Present
CHAPTER
26
The Changing Role of the Federal Government
CHAPTER
27
Monetary Policy, Fiscal Policy, and the Business Cycle after
World War II
CHAPTER
28
Manufacturing, Productivity, and Labor
CHAPTER
29
Achievements of the Past, Challenges for the Future
Subject Index
Name Index
Contents
PREFACE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
xix
CHAPTER 1
Growth, Welfare, and the American Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Americans 1900–2009
1
A Study with a Purpose 6
Nation Building 6
Policy Analysis for Better Choices
9
Critical Skills for Personal Development
The Long Road out of Poverty 11
An Institutional Road Map to Plenty
PART 1
10
15
The Colonial Era: 1607–1776
CHAPTER 2
Founding the Colonies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
European Background to the Voyages of Discovery
European Roots and Expanding Empires 22
Portugal and the First Discoveries
23
Portugal and Spain: Expanding Empires
24
The Latecomers: Holland, France, and England
26
27
First British Settlements in North America
Perilous Beginnings 27
Early Reforms 29
Bringing in Settlers
22
30
Demographic Change 34
Underpopulation Despite High Rates of Population Growth
Population Growth in British North America 34
The Racial Profile 36
Imperial European Rivalries in North America 39
34
CHAPTER 3
Colonial Economic Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Land and Natural Resource Abundance, Labor Scarcity
Agriculture and Regional Specializations
The Southern Colonies 45
The Middle Colonies 47
New England 48
42
44
The Extractive Industries 49
Furs, Forests, and Ores 49
Sea Products 52
ix
x
Contents
The Manufacturing Industries 52
Household Manufacture and Craftshops
Mills and Yards 53
Shipbuilding 54
Occupational Groups
52
56
CHAPTER 4
The Economic Relations of the Colonies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
58
English Mercantilism and the Colonies
The Early Navigation Acts 59
60
Exports, Imports, and Markets
Overseas Shipping and Trade
Intercolonial Commerce
61
65
Money and Trade 66
Commodity Money 66
Coins, Specie, and Paper Money
67
Trade Deficits with England 69
Interpretations: Money, Debt, and Capital
72
CHAPTER 5
Economic Progress and Wealth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
Growth and Change in the Colonial Economy 75
Productivity Change in Agriculture 76
Productivity Gains in Transportation and Distribution
Speculations on Early Growth Rates
Wealth Holdings 86
80
83
Technological Change and Productivity
86
88
Per Capita Wealth and Income, 1774
The Distribution of Income and Wealth
88
CHAPTER 6
Three Crises and Revolt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
The Old Colonial Policy
93
The New Colonial Policy and the First Crisis
More Changes and the Second Crisis
The Third Crisis and Rebellion 99
Support in the Countryside 101
Economic Exploitation Reconsidered
PART 2
96
98
104
The Revolutionary, Early National, and Antebellum Eras:
1776–1860
CHAPTER 7
Hard Realities for a New Nation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
The War and the Economy
The Constitution
110
113
American Independence and Economic Change
115
Contents
xi
117
A Quantitative Analysis of Economic Change
119
War, Neutrality, and Economic Resurgence
CHAPTER 8
Land and the Early Westward Movements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
The Acquisition of the Public Domain 125
Disposing of the Public Domain 127
The Northwest Land Ordinance of 1785 128
The Northwest Ordinance of 1787 129
The Later Land Acts, 1796–1862 130
The Migrations to the West 132
The Northwestern Migration and Hogs, Corn, and Wheat 133
Agricultural Specialization and Regional Dislocation 136
138
The Southwestern Migration and Cotton
The Far Western Migration
141
CHAPTER 9
Transportation and Market Growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145
The Antebellum Transportation Revolution
The Routes of Western Commerce
145
147
Steamboats and the Natural Waterways 148
Competition, Productivity, and Endangered Species
150
Public Versus Private Initiative on the Natural Waterways
153
The Canal Era
156
The Iron Horse
Roads 158
Turnpikes
152
159
The Antebellum Interregional Growth Hypothesis
Ocean Transport
160
161
CHAPTER 10
Market Expansion and Industry in First Transition . . . . . . . . . . . . . . . . . . . . . . . . . . . 166
Early Changes in U.S. Manufacturing 166
The Decline of Household Production 166
Craftshops and Mills 167
The Emergence of U.S. Factories 168
The Lowell Shops and the Waltham System 168
Iron and Other Factories 170
The Rise of Corporate Organization 171
Leading Industries, 1860 172
Prerequisites to Factory Production 173
Machines and Technology 173
Standardized Interchangeable Parts 174
Continuous Process and Assembly Lines 174
Power and Energy 175
Factor Proportions and Borrowing and Adapting Technology
Productivity Advances in Manufactures
Protection from Foreign Competition
178
179
177
xii
Contents
CHAPTER 11
Labor during the Early Industrial Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183
The Growth of the Population and the Labor Force
183
The Changing Labor Force Distribution and Composition
Factories and Workers 185
The Rhode Island and Waltham Systems 186
The Impact of Immigration
188
189
The Wages of Male Labor in Manufacturing
English–American Wage Gaps 191
Skilled–Unskilled Wage Ratios 192
Growing Inequality of Income
184
192
The Early Union Movement 195
Legal Setbacks and Gains 195
Organizational Gains 196
197
Political Gains for Common Working People
Suffrage 197
Public Education 198
Debts, Military Service, and Jail 198
The 10-Hour Day 198
CHAPTER 12
Money and Banking in the Developing Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201
The American Monetary Unit
201
202
The Bimetallic Standard
Bank Notes as Paper Money
204
The First Bank of the United States
The Second Bank of the United States
205
208
212
Economic Fluctuations and the Second Bank
Experiments in State Banking Controls 215
The Suffolk System and the Safety Fund 215
Free Banking 216
The Forstall System 216
The Economic Consequences of the Gold Rush
217
CHAPTER 13
The Entrenchment of Slavery and Regional Conflict . . . . . . . . . . . . . . . . . . . . . . . . . . 219
African Slavery in the Western Hemisphere
219
First U.S. Constraints on Slavery 220
Northern Emancipation at Bargain Prices 222
The Persistence of Southern Slavery 223
Plantation Efficiency
Economic Exploitation
224
231
Economic Entrenchment and Regional Incomes
Political Compromises and Regional Conflict
232
234
Contents
PART 3
xiii
The Reunification Era: 1860–1920
CHAPTER 14
War, Recovery, and Regional Divergence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 242
The Economics of War 242
Trade and Finance Policies South and North
The Civil War and Northern Industrialization
247
Economic Retardation in the South
Decline in the Deep South 250
The Inequities of War 251
The Legacy of Slavery
244
246
252
CHAPTER 15
Agriculture’s Western Advance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 261
The Expansion of Land under Cultivation
Federal Land Policy
261
262
264
The Impact of Federal Land Policy
Growth and Change in Agriculture 266
New Areas and Methods of Cultivation
Hard Times on the Farm, 1864–1896
266
268
Agrarian Political Organizations 272
The Grangers 273
The Greenback Movement 274
The Alliances 274
The Populists 274
The Beginnings of Federal Assistance to Agriculture
The Department of Agriculture 275
Agricultural Education 275
Natural Resource Conservation: The First Stages
Land, Water, and Timber Conservation 277
275
276
CHAPTER 16
Railroads and Economic Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280
The Transcontinentals
280
Total Construction: Pace and Patterns 282
Productivity Advance and Slowdown 284
Building Ahead of Demand?
285
Land Grants, Financial Assistance, and Private Capital
Unscrupulous Financial Practices
287
Government Regulation of the Railroads
State Regulation 290
Federal Regulation 291
Capturing the Regulators? 293
Railroads and Economic Growth
293
288
286
xiv
Contents
CHAPTER 17
Industrial Expansion and Concentration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 298
298
Structural Change and Industry Composition
New Technologies 300
New Forms and Sources of Energy 304
Mass Production
306
307
Economies of Scale and Industry Concentration
Early Business Combinations 307
Trusts and Holding Companies 308
The Two Phases of the Concentration Movement 309
Phase 1: Horizontal Mergers (1879–1893) 309
Phase 2: The Vertical Mergers (1898–1904) 312
The Sherman Antitrust Act 314
The Supreme Court as Trustbuster 316
The Federal Trade Commission 317
CHAPTER 18
The Emergence of America’s Labor Consciousness . . . . . . . . . . . . . . . . . . . . . . . . . . . . 319
319
Demographic Change and the Supply of Labor
Birth and Death Rates 319
Immigration 321
Immigration: Politics and Economics 322
Foreign Workers and American Labor 323
Gains for Workers in the Postbellum Period
Hours and Wages 324
Women 328
Children 329
324
Unions, Employers, and Conflict, 1860–1914
The Unions and the Courts 334
330
Labor’s Gains and the Unions
335
CHAPTER 19
Money, Prices, and Finance in the Postbellum Era . . . . . . . . . . . . . . . . . . . . . . . . . . . . 338
New Forms of Currency 339
A Dual Banking System 340
Gold, Greenbacks, or Bimetallism? 343
Returning to the Gold Standard after the Civil War
The Crime of ’73 347
The Commitment to the Gold Standard 349
The International Gold Standard 351
The Rise of Investment Banking
343
352
Bank Panics and the Establishment of the Federal Reserve System
National Monetary Commission 355
Federal Reserve Act 355
354
CHAPTER 20
Commerce at Home and Abroad . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 358
Urbanization
358
Marketing and Selling
Wholesaling 359
Retailing 362
359
Contents
Product Differentiation and Advertising
363
366
The First Steps toward Consumer Protection
Foreign Trade 368
Changing Composition of Exports and Imports
Changes in Balance of Trade 370
373
374
The United States in an Imperialist World
PART 4
369
371
The Acceptance of Protectionist Doctrines
The Income Tax
xv
War, Depression, and War Again: 1914–1946
CHAPTER 21
World War I, 1914–1918 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 380
The Origins of the War
380
381
The United States goes to War
Financing the War 382
Replacement of the Market with a Command System
The War Industries Board 385
The Food and Fuel Administrations 385
Labor during the War
387
The Costs of the War
390
The Legacies of the War 390
The Postwar Recession 390
The Domestic Legacies 391
The International Legacies: The Treaty of Versailles
384
392
CHAPTER 22
The Roaring Twenties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 394
Social Changes in the Aftermath of War
394
New Goods and the Rise of the Middle Class
The Automobile 396
Buy Now, Pay Later 397
Prohibition 399
395
The Labor Force in the Twenties 400
The Paycheck Rises 400
The Unions Decline 400
Immigration Is Restricted 402
America Goes to High School 403
On the Land 404
Economic Distress in Agriculture 404
First Steps toward Farm Subsidies 405
Were the Rich Getting Richer while the Poor Got Poorer?
Macroeconomic Policies 407
Fiscal Policy 407
Monetary Policy 408
International Developments
410
The Great Bull Market 411
The Ponzi Scheme 411
The Florida Land Boom 411
407
xvi
Contents
The Stock Market Boom 412
Should They Have Seen the Crash Coming?
415
CHAPTER 23
The Great Depression . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 418
418
Dimensions of the Depression
Causes of the Great Depression 420
The Stock Market Crash 420
The Banking Crises 424
The Smoot-Hawley Tariff 426
The Role of the Financial Crisis 426
Monetary Effects of the Financial Crises 426
Nonmonetary Effects of the Financial Crisis 428
Why Didn’t the Federal Reserve Save the Banking System?
429
431
Fiscal Policy in the 1930s
Partial Recovery and then a New Downturn 432
The Price of Gold and the Stock of Money 432
Climbing Out of the Abyss 433
The Recession within the Depression 434
Why Did the Depression Last So Long? 434
Perverse Effects of the New Deal? 435
Fiscal and Monetary Policy 435
Can It Happen Again?
436
What Does the Depression Tell Us about Capitalism?
437
CHAPTER 24
The New Deal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 440
The First New Deal
Relief 440
Recovery 444
440
Reform of the Financial System 445
A Safety Net for the Banking System 445
Increased Regulation of Securities Markets 446
The End of America’s Commitment to the Gold Standard 446
Centralization of Monetary Power in the Federal Reserve Board
Reform of the Agricultural Sector
446
447
Labor and the New Deal 452
A New Institutional Framework for Labor Markets 452
Why Was Unemployment So High for So Long? 454
The Supreme Court and the New Deal
The Second New Deal: The Welfare State
The Critics of the New Deal
457
The Legacy of the New Deal
459
456
456
CHAPTER 25
World War II . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 462
Mobilizing for War 462
Trade-offs 465
Overwhelming Firepower
466
Contents
Fiscal and Monetary Policy
468
Wage and Price Controls 470
Hidden Price Increases and the Black Market
Rationing 472
Wartime Prosperity?
Labor during the War
xvii
471
473
474
476
Wartime Minority Experiences
Rosie the Riveter 476
African Americans 477
Agriculture during the War
479
Demobilization and Reconversion 480
Would the Depression Return? 480
The GI Bill of Rights 480
Birth of the Consumer Society 481
PART 5
The Postwar Era: 1946 to the Present
CHAPTER 26
The Changing Role of the Federal Government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 486
The Size of Government in the Postwar Era
Total Federal Spending 486
Federal Purchases of Goods and Services
Federal Employment 489
Winners in the Federal Budget 489
486
486
The Liberal Era, 1945–1976: Continued Expansion of Government
The “Little New Deal” 491
The New Regulation 493
The Conservative Era: 1976–2000, Deregulation and Reaganomics
Deregulation 495
Reaganomics 495
The Cold (and Sometimes Hot) War Against Communism
Agriculture 498
The Relative Decline of Agriculture
Price Supports and Subsidies 500
Wagner’s Law
495
496
498
The Environment 503
The Conservation Movement 503
The Rise of the Environmental Movement
Changing Ideological Tides
490
504
506
507
CHAPTER 27
Monetary Policy, Fiscal Policy, and the Business Cycle after World War II . . . . . 510
The Keynesian Era 510
The Korean War and the Treasury-Fed Accord 513
Dwight D. Eisenhower: The Conservative Approach to the Business Cycle
John F. Kennedy and Lyndon Johnson: The New Economics 515
Richard M. Nixon: Price Controls and the End of Bretton Woods 516
Jimmy Carter: The Great Inflation Reaches a Climax 519
514
Was the Economy More Stable During the Keynesian Era than before the Depression?
522
xviii
Contents
The Monetarist Era 523
…
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