Notes

CHAPTER 1: A LAND OF PROMISE

1. George Washington to David Humphreys, 25 July 1785, in Jared Sparks, ed., The Writings of George Washington (Boston: Russell, Odiorne, and Metcalf, and Hilliard, Gray, 1835), 9:113.

2. Herbert Croly, The Promise of American Life (New York: Macmillan, 1914 [1909]), 3.

3. Marcia A. Dente, Great Falls of Paterson (Charleston, SC: Arcadia Publishing, 2010), 21.

4. “S.U.M.: Society for Establishing Useful Manufactures,” Paterson Friends of the Great Falls, http://www.patersongreatfalls.org/sum.html (accessed November 1, 2011).

5. “Society for Establishing Useful Manufactures,” in The Encyclopedia of New Jersey, ed. Maxine N. Lurie and Marc Mappen (New Brunswick, NJ: Rutgers University Press, 2004), 753.

6. Dente, Great Falls of Paterson, 37.

7. “Economic Independence Through Industry,” Hamilton Partnership for Paterson, http://www.hamiltonpartnership.org/node/257 (accessed November 1, 2011).

8. Ibid.

9. Ibid.

10. Richard Knowles Morris, John P. Holland, 1841–1914: Inventor of the Modern Submarine (Columbia: University of South Carolina, 1966).

11. Ibid., 116.

12. Lois Palken Rudnick, Mabel Dodge Luhan: New Woman, New Worlds (Albuquerque: University of New Mexico Press, 1984), 87.

13. Dente, Great Falls of Paterson, 52.

14. Kirk W. House, Hell-Rider to King of the Air: Glenn Curtis’ Life of Innovation (Warrendale, PA: SAE International, 2003).

15. Richard R. Nelson and Sidney G. Winter, An Evolutionary Theory of Economic Change (Cambridge, MA: Belknap Press of Harvard University Press, 1985); Richard R. Nelson, Technology, Institutions, and Economic Growth (Cambridge, MA: Harvard University Press, 2005); Carlota Perez, Technological Revolutions and Financial Capital: The Dynamics of Bubbles and Golden Ages (Cheltenham and Camberley, UK; Northampton, MA: Edward Elgar, 2002); Robert D. Atkinson, The Past and Future of America’s Economy: Long Waves of Innovation That Power Cycles of Growth (Cheltenham and Camberley, UK; Northampton, MA: Edward Elgar, 2005); Wolfgang Drechsler, Rainer Kattel, and Erik S. Reinert, Techno-Economic Paradigms: Essays in Honour of Carlota Perez (London and New York: Anthem Press, 2009).

16. Michael Lind, The Next American Nation: The New Nationalism and the Fourth American Revolution (New York: Simon & Schuster, 1995). Other interpretations of US history in terms of a series of successive republics or regimes include Theodore Lowi, The End of Liberalism: The Second Republic of the United States (New York: W. W. Norton, 1979); Bruce Ackerman, We the People, vol. 1: Foundations (Cambridge, MA: Belknap Press of Harvard University Press, 1991); Morton Keller, America’s Three Regimes: A New Political History (New York: Oxford University Press, 2007).

17. George Tucker, The Life of Thomas Jefferson (Philadelphia: Carey, Lea, & Blanchard, 1873), 503.

18. John Maynard Keynes, The General Theory of Employment, Interest and Money (London: Macmillan, 1936).

19. Chalmers Johnson, “The Developmental State: Odyssey of a Concept,” in The Developmental State, ed. Meredith Woo-Cumings (Ithaca, NY: Cornell University Press, 1999). See also Eric Reinert, How Rich Countries Got Rich . . . and Why Poor Countries Stay Poor (New York: Carroll and Graf, 2007).

20. The identification is found in David Nasaw, “Gilded Age Gospels,” in Ruling America: A History of Wealth and Power in a Democracy, ed. Steve Fraser and Gary Gerstle (Cambridge, MA: Harvard University Press, 2005), 324, n9.

21. Andrew Carnegie, The “Gospel of Wealth” Essays and Other Writings, ed. David Nasaw (New York: Penguin, 2006), 63.

22. Doron Kornbluth, “Is History Bunk?” Chabad.org, http://www.chabad .org/library/article_cdo/aid/M67039/jewish/Is-History-Bunk.htm (accessed December 8, 2011).

CHAPTER 2: NATION BUILDING

1. Henry Adams, History of the United States of America, vol. 9 (New York: Charles Scribner’s Sons, 1911), 195–6.

2. James Hawkes, A Retrospect of the Boston Tea-Party, with a Memoir of George R. T. Hewes, a Survivor of the Little Band of Patriots Who Drowned the Tea in Boston Harbour in 1773 (New York: S. S. Bliss, 1834), 39.

3. Thomas Mun, England’s Treasure by Foreign Trade (New York: Macmillan, 1895), 7–8.

4. Quoted in Ha-Joon Chang, Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism (New York: Bloomsbury Press, 2008), 44.

5. John Locke, Letter Concerning Toleration, ed. James Tully (Indianapolis: Hackett, 1983), 47–48.

6. Locke MSS., Lovelace Collection, Bodleian Library, Oxford University, c. 30, fols. 8 and 19, quoted in John Locke, Second Treatise of Government, ed. Richard Howard Cox (Arlington Heights, IL: H. Davidson, 1982), 175–6.

7. Quoted in David Bertelson, The Lazy South (New York: Oxford University Press, 1967), 86.

8. Edmund Burke, The Works of the Right Honorable Edmund Burke, vol. 1, 371, cited in Jonathan Haslam, No Virtue Like Necessity: Realist Thought in International Relations Since Machiavelli (New Haven, CT: Yale University Press, 2002), 141.

9. Samuel Eliot Morison and Henry Steel Commager, The Growth of the American Republic, vol. 1 (New York: Oxford University Press, 1942), 102.

10. Ha-Joon Chang, Kicking Away the Ladder: Development Strategy in Historical Perspective (London: Anthem, 2002), 52.

11. Morison and Commager, Growth of the American Republic, vol. 1, 103.

12. Chang, Kicking Away the Ladder, 52.

13. Ibid., 54–55.

14. Ibid., 52–55.

15. Robert E. Wright and David J. Cowen, Financial Founding Fathers: The Men Who Made America Rich (Chicago: University of Chicago Press, 2006), 126.

16. Charles Rappleye, Robert Morris: Financier of the American Revolution (New York: Simon & Schuster, 2010), 304.

17. Ibid., 306.

18. Quoted in Margaret C. S. Christman, Adventurous Pursuits (Washington, DC: Smithsonian Institution Press, 1984), 43.

19. Rappleye, Robert Morris, 105–106.

20. Wright and Cowen, Financial Founding Fathers, 139.

21. Ibid., 137–38.

22. Charles E. Brooks, Frontier Settlement and the Market Revolution: The Holland Land Purchase (Ithaca, NY: Cornell University Press, 1996), 13.

23. Washington Irving, Life of George Washington (New York: G. P. Putnam’s Sons, 1876), 2:654.

24. Hamilton to James Duane, September 3, 1780, in The Papers of Alexander Hamilton, ed. Harold C. Syrett et al. (New York: Columbia University Press, 1963), 2:400–418.

25. Chang, Kicking Away the Ladder, 21–22.

26. “Stock Marine List,” New York Gazette, April 2, 1792, quoted in Robert E. Wright, One Nation under Debt: Hamilton, Jefferson, and the History of What We Owe (New York: McGraw-Hill, 2008), 159.

27. Hamilton to Morris, April 1781, quoted in Frank Bourgin, The Great Challenge: The Myth of Laissez-Faire in the Early Republic (New York: George Braziller, 1989), 75.

28. Leonard L. Richards, Shays’s Rebellion: The American Revolution’s Final Battle (Philadelphia: University of Pennsylvania Press, 2002), 158–59.

29. For Hamilton’s bank plan, see The Papers of Alexander Hamilton, ed. Syrett et al., 7:305–42.

30. Ibid., 3:419, in Bourgin, The Great Challenge, 80.

31. David Jack Cowen, The Origins and Economic Impact of the First Bank of the United States, 1791–1797 (New York and London: Garland, 2000).

32. Richard Sylla, “Reversing Financial Reversals,” in Government and the American Economy: A New History, ed. Price Van Meter Fishback (Chicago and London: University of Chicago Press, 2007), 121.

33. James O. Wettereau, “The Branches of the First Bank of the United States,” Journal of Economic History 2 (December 1942): 66–100.

34. Thomas Jefferson, “Note on the Establishment of a Money Unit, and of a Coinage for the United States,” in The Works of Thomas Jefferson, Federal Edition, Paul Leicester Ford, ed. (New York and London: G. P. Putnam’s Sons, 1904–1905), 4:297–313.

35. James E. Vance Jr., The Continuing City: Urban Morphology in Western Civilization (Baltimore and London: Johns Hopkins University Press, 1990), 329.

36. Lawrence A. Peskin, Manufacturing Revolution: The Intellectual Origins of Early American Industry (Baltimore: Johns Hopkins University Press, 2003), 94.

37. Hamilton, “Report on Manufactures” (Washington, DC: Government Printing Office, 1913 [originally published in 1791]), 18.

38. Alexander Hamilton, Federalist 35, in The Federalist Papers, ed. Charles Kesler and Clinton Rossiter (New York: Penguin, 1999), 208.

39. Alexander Hamilton, “Report on the Subject of Manufactures,” in The Papers of Alexander Hamilton, ed. Syrett et al., 10:285–6.

40. Doron Ben-Atar, “Alexander Hamilton’s Alternative: Technology Piracy and the Report on Manufactures,” The William and Mary Quarterly, 3d ser., 52, no. 3 (July 1995): 396.

41. Ibid., 390.

42. Ibid., 390–91.

43. Jefferson to William Crawford, June 10, 1816, in The Writings of Thomas Jefferson, ed. Paul Leicester Ford (New York: G. P. Putnam’s Sons, 1892–1899), 10:33–35.

44. Ben-Atar, “Alexander Hamilton’s Alternative,” 408.

45. Ibid., 396.

46. Ibid., 407.

47. Ibid., 412.

48. The Papers of Alexander Hamilton, ed. Syrett et al., 10:525.

49. Hamilton to James A. Bayard, January 16, 1801, in The Papers of Alexander Hamilton, ed. Syrett et al. (New York: Columbia University Press, 1963), 25:319–24 (“by a trick,” 25:321n).

50. Ibid., 11:131.

51. David J. Cowen, “The First Bank of the United States and the Securities Market Crash of 1792,” Journal of Economic History 60, no. 4 (December 2000): 1041–60; Cathy Matson, “Public Vices, Private Benefit: William Duer and His Circle, 1776–1792,” in New York and the Rise of American Capitalism: Economic Development and the Social and Political History of an American State: 1780–1870, ed. William Pencak and Conrad Edick Wright (New York: New-York Historical Society, 1989), 72–123; Joseph Stancliffe Davis, Essay II, “William Duer, Entrepreneur, 1747–1799,” in Essays on the Earlier History of American Corporations (Cambridge, MA: Harvard University Press, 1917), 278–345.

52. Albert Gallatin, “Report on Manufactures,” in Alexander Hamilton et al., State Papers and Speeches on the Tarriff (Cambridge, MA: Harvard University Press, 1893).

53. Thomas Jefferson, Notes on the State of Virginia with Related Documents, ed. Donald Waldstreicher (New York: Palgrave, 2002), 197.

54. Jefferson to General Thaddeus Kosciuszko, June 28, 1812, in The Writings of Thomas Jefferson, ed. Andrew A. Lipscomb and Albert E. Bergh (Washington, DC: Thomas Jefferson Memorial Association, 1905), 13:170.

55. Jefferson to William Crawford, June 20, 1816, in Writings of Thomas Jefferson, ed. Paul Leicester Ford (New York: Cosimo, 2009), 10:34–35.

56. Jefferson to Benjamin Austin, January 9, 1816, in The Writings of Thomas Jefferson, ed. H. A. Washington (New York: H. W. Derby, 1861), 6: 522–23.

57. Marvin Meyers, ed., The Mind of the Founder: Sources of the Political Thought of James Madison, rev. ed. (Hanover, NH, and London: Brandeis University Press, 1973), 380–84.

58. Jefferson to Pierre Samuel Du Pont de Nemours, 1811, quoted in Bourgin, The Great Challenge, 137.

59. Jefferson to Joel Barlow, 1811, quoted in Bourgin, The Great Challenge, 151.

CHAPTER 3: THE FIRST AMERICAN ECONOMY

1. Adam Smith, part 2, An Inquiry into the Nature and Causes of the Wealth of Nations (New York: P.F. Collier & Son, 1903 [originally published in 1776]), 112.

2. Fortune, “Almanac of American Wealth: The Richest Americans,” CNN Money, http://money.cnn.com/galleries/2007/fortune/0702/gallery .richestamericans.fortune/2.html (accessed September 27, 2011).

3. Angus Maddison, The World Economy: A Millenial Perspective (Paris: OECD Publishing, 2001), 28.

4. Gregory Clark, “Human Capital, Fertility and the Industrial Revolution,” Journal of the European Economic Association 3, nos. 2/3 (April–May 2005): 505–15.

5. Smith, The Wealth of Nations, 172.

6. David Hosack, Memoir of De Witt Clinton (New York: J. Seymour, 1829), 347, quoted in Susan Dunn, Dominion of Memories: Jefferson, Madison, and the Decline of Virginia (New York: Basic Books, 2007), 91.

7. Dunn, Dominion of Memories, 90.

8. Jonathan Hughes and Louis P. Cain, American Economic History, 5th ed. (New York: Addison-Wesley, 1998), 143.

9. Carl Carmer, The Hudson, 2nd ed. (New York: Fordham University Press, 1989), 162.

10. Frances Trollope, Domestic Manners of the Americans, ed. Donald Smalley (New York: Alfred A. Knopf, 1949 [originally published in 1832]), 369, quoted in Ronald E. Shaw, Canals for a Nation: The Canal Era in the United States, 1790–1860 (Lexington: University Press of Kentucky, 1990), 184.

11. Harriet Martineau, Retrospect of Western Travel, vol. 1 (New York: Saunders & Otley, 1838), 77, quoted in Shaw, Canals for a Nation, 183.

12. Hughes and Cain, American Economic History, 143.

13. George E. Pataki and Louis R. Tomson, “The Erie Canal: A Brief History,” New York State Canal Corporation, www.canals.ny.gov/cculture/history/erie-canal-history.pdf (accessed September 27, 2011).

14. “The Erie Canal: A Brief History,” Web site of the state of New York, http://www.canals.ny.gov/cculture/history/ (accessed December 8, 2011).

15. Carter Goodrich, Government Promotion of American Canals and Railroads, 1800–1890 (New York: Columbia University Press, 1960), 34–35.

16. Robert J. Kapsch, The Potomac Canal: George Washington and the Waterway West (Morgantown: West Virginia University Press, 2007), 229.

17. Washington to David Stuart, December 2, 1788, in The Writings of George Washington, ed. John C. Fitzpatrick (Washington, DC: US Government Printing Office, 1931–1944), 30:146.

18. Washington to Marquis de Lafayette, January 29, 1789, in Glenn A. Phelps, George Washington and American Constitutionalism (Lawrence: University Press of Kansas, 1993), 64.

19. Washington, quoted in Frank Bourgin, The Great Challenge: The Myth of Laissez-Faire in the Early Republic (New York: George Braziller, 1989), 149.

20. John Kaminski, ed., A Necessary Evil: Slavery and the Debate over the Constitution (Madison, WI: Madison House Publishers, 1995), 277.

21. Julian Ursyn Niemcewicz, Under Their Vine and Fig Tree: Travels Through America in 1797–1799 (Elizabeth, New Jersey: Grassman, 1965 [first published in 1805]), quoted in Martin Bruegel, “Unrest: Manorial Society and the Market in the Hudson Valley, 1780–1850,” Journal of American History 82, no. 4 (March 1996): 1410–11.

22. Bruegel, “Unrest,” 1399.

23. Ibid.

24. Ibid., 1407.

25. David Maldwyn Ellis, Landlords in the Hudson-Mohawk Region, 1790–1859 (Ithaca, NY: Cornell University Press, 1946), p. 32.

26. Eric Ford, “New York’s Anti-Rent War, 1845–1846,” Contemporary Review 280, no. 1637 (June 2002): 366–69.

27. John Jay, The Correspondence and Public Papers of John Jay, ed. Henry P. Johnston (New York: G. P. Putnam’s Sons, 1891), 3:97.

28. Margaret C. Christman, Adventurous Pursuits: Americans and the China Trade, 1784–1844 (Washington, DC: Smithsonian Institution Press, 1984).

29. Ibid., 18–19.

30. Alfred Tamarin and Shirley Glubok, Voyaging to Cathay: Americans in the China Trade (New York: Viking Press, 1976).

31. Jacques M. Downs, “American Merchants and the China Opium Trade, 1800–1840,” Business History Review 42, no. 4 (Winter 1968): 439.

32. Quoted in Charles C. Stelle, “American Trade in Opium to China, Prior to 1820,” Pacific Historical Review, 9, no. 4 (December 1940): 425–44.

33. Downs, “American Merchants and the China Opium Trade,” 438.

34. Ibid., 442.

35. Karl E. Meyer, “The Opium War’s Secret History,” New York Times, June 28, 1997.

36. John King Fairbank, Trade and Diplomacy on the China Coast: The Opening of the Treaty Ports, 1842–1854, 2 vols. (Cambridge, MA: Harvard University Press, 1953).

37. Girard to Mahlon Hutchinson Jr. and Myles McLeveen, January 2, 1805, Stephen Girard Papers, Girard College Library, Philadelphia, PA, quoted in Downs, “American Merchants and the China Opium Trade,” 418–42.

38. David S. Miller, “The Polly: A Perspective on Merchant Stephen Girard,” Pennsylvania Magazine of History and Biography 112, no. 2 (April 1988): 201.

39. Wright and Cowen, Financial Founding Fathers, 150–51.

40. George Wilson, Stephen Girard: America’s First Tycoon (Conshohocken, PA: Combined Books, 1995), 303.

41. Miller, “The Polly,” 201.

42. “Slave Cells Exhumed,” New York Daily Tribune, October 21, 1906.

43. John Upton Terrell, Furs by Astor (New York: William Morrow, 1964), 93.

44. Ibid., 130.

45. Axel Madsen, John Jacob Astor: America’s First Multimillionaire (New York: Wiley, 2001), 196.

46. Terrell, Furs by Astor, 404–5.

47. Quoted in Eric Jay Dolin, Fur, Fortune, and Empire: The Epic Story of the Fur Trade in America (New York: W. W. Norton, 2010), 268–69.

48. Madsen, John Jacob Astor, 197.

49. Quoted in Madsen, John Jacob Astor, 200.

50. Ian Frazier, Great Plains (New York: Farrar, Straus and Giroux, 1989), 23.

51. Terrell, Furs by Astor, 299.

52. 22nd Cong., 1st sess., 1832, S. doc 90, quoted in Arthur D. Howden Smith, John Jacob Astor: Landlord of New York (New York: Cosimo, 2005), 222.

53. Eric Jay Dolin, Leviathan: The History of Whaling in America (New York: W. W. Norton, 2007), 168.

54. Quoted in Dolin, Leviathan, 248–49.

55. Dolin, Leviathan, 336.

56. Ibid., 339.

57. Ibid., 362.

58. Ibid., 335.

59. See Drew R. McCoy, The Elusive Republic: Political Economy in Jeffersonian America (Chapel Hill: University of North Carolina Press, 1996).

60. Joseph A. Schumpeter, History of Economic Analysis (New York: Oxford University Press, 1954), 571.

CHAPTER 4: “THERE IS NOTHING THAT CANNOT BE PRODUCED BY MACHINERY”: THE FIRST INDUSTRIAL REVOLUTION

1. Erasmus Darwin, The Botanic Garden (1781), pt. 1, canto 1, ll. 289–92. The Botanic Garden, with Philosophical Notes, 4th ed. (London: J. Johnson, 1799).

2. Ralph Waldo Emerson, “The Young American” (1844), in Collected Works of Ralph Waldo Emerson, vol. 1, ed. Robert Spiller (Cambridge, MA: Harvard University Press, 1971), 230.

3. Alex Roberto Hybel, Made by the USA: The International System (New York: Palgrave, 2001), 15.

4. “Samuel Slater,” PBS Who Made America? Series, http://www.pbs.org/wgbh/theymadeamerica/whomade/slater_hi.html (accessed December 8, 2011).

5. Douglas A. Irwin and Peter Temin, “The Antebellum Tariff on Cotton Textiles Revisited,” Journal of Economic History 61, no. 3 (September 2001).

6. Nathan Rosenberg, Perspectives on Technology (Cambridge, UK: Cambridge University Press, 1976), 176.

7. “Cyrus McCormick: Mechanical Reaper,” MIT Inventor of the Week Archive, http://web.mit.edu/invent/iow/mccormick.html (accessed December 8, 2011).

8. “John Deere History,” RunGreen.com, http://www.rungreen.com/John-Deere-History_ep_38-1.html (accessed December 8, 2011).

9. Robert H. Gudmestad, “Steamboats and Southern Economic Development,” in Technology, Innovation, and Southern Industrialization: From the Antebellum Era to the Computer Age, ed. Susanna Delfino and Michele Gillespie (Columbia and London: University of Missouri Press, 2008), 30, table 1, “Average Steamboat Freight Rates in the Louisville to New Orleans Trade.”

10. T. J. Stiles, “Cornelius Vanderbilt,” New York Times Online, http://topics .nytimes.com/top/reference/timestopics/people/v/cornelius_vanderbilt/index.html (accessed December 8, 2011).

11. Quoted in Mary Bellis, “Steam in Captivity: Oliver Evans Fights for His Patent,” About.com, http://inventors.about.com/cs/inventorsalphabet/a/oliver_evans.htm (accessed September 27, 2011).

12. Mary Bellis, “Steam in Captivity.”

13. Nathan Rosenberg, Technology and American Economic Growth (New York: Harper & Row, 1972), 73.

14. Mary Bellis, “John Stevens and Railroads,” About.com Inventors, http://inventors.about.com/library/inventor/bl_john_stephens.htm (accessed December 13, 2011).

15. John F. Stover, American Railroads, 2nd ed. (Chicago: University of Chicago Press, 1997), 13.

16. Jonathan Hughes and Louis P. Cain, American Economic History, 5th ed. (New York: Addison-Wesley, 1998), 151.

17. Ibid.

18. Mary Bellis, “The History of the Electric Telegraph and Telegraphy,” About.com Inventors, http://inventors.about.com/od/tstartinventions/a/telegraph.htm (accessed December 8, 2011).

19. Bruce L. R. Smith, American Science Policy Since World War II (Washington, DC: Brookings Institution, 1990), 25.

20. David A. Hounshell, From the American System to Mass Production, 1800–1932: The Development of Manufacturing Technology in the United States (Baltimore and London: Johns Hopkins University Press, 1984), 26.

21. Ibid., 27.

22. Ibid., 192–93.

23. Quoted in Hugo Meier, “Technology and Democracy, 1800–1860,” Mississippi Valley Historical Review 43 (1957): 622; Nathan Rosenberg, Technology and American Economic Growth, pt. 2 (New York: Harper & Row, 1972), 33.

24. Rosenberg, Technology and American Economic Growth, 35.

25. John M. Murrin et al., Liberty, Equality, Power, 4th ed. (Boston: Wadsworth, 2008), 370.

CHAPTER 5: AMERICAN SYSTEMS

1. Adam Smith, An Inquiry into the Nature and Causes of the Wealth of Nations (New York: Random House, 1937 [originally published in 1776]), 309.

2. Simon Patten, The Economic Basis of Protection (Philadelphia: J. B. Lippincott, 1890), 87.

3. John Gallagher and Ronald Robinson, “The Imperialism of Free Trade,” Economic History Review 6, no. 1 (1953): 1–15.

4. Ha-Joon Chang, Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism (New York: Bloomsbury Press, 2008), 53.

5. Cobden, Political Writings, 1:150; cited in Reinert, “Raw Materials in the History of Economic Policy,” 292, and Chang, Bad Samaritans, 23, 165n45.

6. Quoted in Robert Gilpin, War and Change in World Politics (Cambridge, UK: Cambridge University Press, 1981), 137.

7. John Adams, Works of John Adams, ed. Charles F. Adams (Boston: Little, Brown, 1850–1856), 10:384; cited in Alfred E. Eckes Jr., Opening America’s Market: U.S. Foreign Trade Policy Since 1776 (Chapel Hill: University of North Carolina Press, 1995), 19.

8. Victor S. Clark, History of Manufactures in the United States, 1607–1860 (Washington, DC: Carnegie Institute, 1916), 240.

9. Smith, The Wealth of Nations, 347–48.

10. Alexander Hamilton, “The Report on the Subject of Manufactures,” December 5, 1791, in The Papers of Alexander Hamilton, ed. Syrett et al. (New York: Columbia University Press, 1966), 10:263.

11. Heather Cox Richardson, The Greatest Nation on Earth: Republican Economic Policies During the Civil War (Cambridge, MA: Harvard University Press, 1997), 19.

12. Henry C. Carey, “How Can Slavery Be Extinguished?” in The Slave Trade, Domestic and Foreign: Why It Exists and How It Might Be Extinguished (Philadelphia: A. Hart, Late Carey & Hart, 1853), 294–307.

13. Henry C. Carey to Henry Wilson, August 26, 1867, in Henry C. Carey, Reconstruction: Industrial, Financial, and Political (Washington, DC: United Press Association, 1868), 16.

14. Edward G. Parker, The Golden Age of American Oratory (Boston: Whittemore, Niles and Hall, 1857), 36; quoted in Edgar DeWitt Jones, The Influence of Henry Clay upon Abraham Lincoln (Lexington, KY: Henry Clay Foundation, 1952), 13.

15. Henry Clay, speech of December 31, 1811, in Clay, The Works of Henry Clay Comprising His Life, Correspondence, and Speeches, ed. Calvin Colton, 6 vols. (New York: Bannes and Burr, 1863), 6:284.

16. Ibid., 6:341.

17. Quoted in Michael Lind, Hamilton’s Republic: Readings in the American Democratic Nationalist Tradition (New York: Free Press, 1997), 248–52.

18. Paul Bairoch, Economics and World History: Myths and Paradoxes (Chicago: University of Chicago Press, 1993), 34.

19. John Joseph Wallis, “The National Era,” in Government and the American Economy: A New History, ed. Price Fishback et al. (Chicago and London: University of Chicago Press, 2007), 169.

20. Bairoch, Economics and World History, 34.

21. Ibid.

22. John C. Calhoun, letter, September 11, 1830, quoted in Gaillard Hunt, John C. Calhoun (Philadelphia: George W. Jacobs, 1907), 73.

23. Quoted in Edward Channing, History of the United States (New York: Macmillan, 1921), 5:397; cited in Daniel Walker Howe, What Hath God Wrought: The Transformation of America, 1815–1848 (New York and London: Oxford University Press, 2007), 358.

24. Alfred D. Chandler Jr., The Visible Hand: The Managerial Revolution in American Business (Cambridge, MA, and London: Belknap Press of Harvard University Press, 1977), 30–31.

25. Nicholas Biddle, An Ode to Bogle (Philadelphia: Privately printed for Ferdinand J. Dreer, 1865), quoted in Hammond, Banks and Politics in America, 292.

26. Thomas Cooper, Lectures on the Elements of Political Economy, 2nd ed. (Columbia, SC: D. E. Sweeney, 1830), 246; quoted in Herbert Hovenkamp, Enterprise and American Law, 1836–1937 (Cambridge, MA: Harvard University Press, 1991), 36.

27. Hamilton papers, quoted in Bray Hammond, Banks and Politics in America: From the Revolution to the Civil War (Princeton, NJ: Princeton University Press, 1985 [originally published in 1957]), 127.

28. House of Representatives Resolution 460, 2nd Cong., 1st sess., 1832, 379–80, quoted in Hammond, Banks and Politics in America, 355.

29. Hammond, Banks and Politics in America, 353.

30. Nicholas Biddle, Correspondence, 306; quoted in Hammond, Banks and Politics in America, 356.

31. James Alexander Hamilton, Reminiscences (New York: Charles Scribner, 1869), 69; quoted in Hammond, Banks and Politics in America, 345.

32. Hammond, Banks and Politics in America, 375.

33. Ibid., 374.

34. Albert Gallatin, Considerations on the Currency and Banking System of the United States (1830); Gallatin, “Suggestions on the Banks and Currency of the Several United States, in Reference Principally to the Suspension of Specie Payments” (1841).

35. Washington Globe, December 13, 1832, quoted in Arthur Meyer Schlesinger, The Age of Jackson (Boston: Little, Brown, 1945), 97.

36. US Congress, Register of Debates 13 (1837), pt. 1:690; quoted in Hammond, Banks and Politics in America, 365.

37. Robert Sobel, The Big Board: A History of the New York Stock Market (New York: Free Press, 1965), 87.

38. Quoted in Ronald E. Shaw, Canals for a Nation: The Canal Era in the United States, 1790–1860 (Lexington: University Press of Kentucky, 1990), 98.

39. Table 1.2, “Government and the Economy,” “Government Debt by Level of Government, Selected Years,” in Government and the American Economy, ed. Fishback et al., 27.

40. Quoted in Ha-Joon Chang, Kicking Away the Ladder: Development Strategy in Historical Perspective (London: Anthem, 2002), 100.

41. Sangamon Journal (Springfield, IL), June 13, 1836, quoted in Kenneth J. Winkle, The Young Eagle: The Rise of Abraham Lincoln (Dallas: Taylor, 2001), 118.

42. William Henry Herndon and Jesse William Weik, Herndon’s Life of Lincoln, ed. Paul M. Angle (Cleveland: World, 1942), 161.

43. J. Van Fenstermaker and John E. Filer, “Impact of the First and Second Banks of the United States and the Suffolk System on New England Bank Money, 1791–1837,” Journal of Money, Credit, and Banking 18, no. 1 (February 1986): 28–40; Naomi R. Lamoreaux, Insider Lending: Banks, Personal Connections, and Economic Development in Industrial New England (Cambridge, UK: Cambridge University Press, 1994); see also J. Van Fenstermaker, The Development of American Commercial Banking, 1782–1837 (Kent, OH: Kent State University Press, 1965); Howard Bodenhorn, A History of Banking in Antebellum America: Financial Markets and Economic Development in an Era of Nation-Building (Cambridge, UK, and New York: Cambridge University Press, 2000).

44. Gary Cross and Rick Szostak, Technology and American Society: A History (Englewood Cliffs, NJ: Prentice-Hall, 1995), 77.

45. Ibid., 26.

46. Harold G. Vatter, The Drive to Industrial Maturity: The U.S. Economy, 1860–1914 (Westport, CT: Greenwood Press, 1975), 13.

47. Allen Guelzo, Abraham Lincoln: Redeemer President (Grand Rapids, MI: Wm. B. Eerdmans, 1999), 41.

48. Recollections of George Borrett, in Conversations with Lincoln, ed. Charles M. Segal (New York: G. P. Putnam’s Sons, 1961), cited in Olivier Fraysee, Lincoln, Land, and Labor, 1809–60, trans. Sylvia Neely (Chicago: University of Chicago Press, 1994), 13.

49. Sean Patrick Adams, Old Dominion, Industrial Commonwealth: Coal, Politics, and Economy in Antebellum America (Baltimore: Johns Hopkins University Press, 2004).

50. Peter Karsten, “ ‘Bottomed on Justice’: A Reappraisal of Critical Legal Studies Scholarship Concerning Breaches of Labor Contracts by Quitting or Firing in the U.S., 1630–1880,” American Journal of Legal History 34, no. 3 (July 1990): 213–61; James D. Schmidt, Free to Work: Labor Law, Emancipation, and Reconstruction, 1815–1880 (Athens: University of Georgia Press, 1998).

51. Jonathan Hughes and Louis P. Cain, American Economic History, 5th ed. (New York: Addison-Wesley, 1998), 112.

52. Brian Schoen, The Fragile Fabric of Union: Cotton, Federal Politics, and the Global Origins of the Civil War (Baltimore: Johns Hopkins University Press, 2009).

53. Guelzo, Abraham Lincoln, 134.

54. Angela Lakwete, Inventing the Cotton Gin: Machine and Myth in Antebellum America (Baltimore: Johns Hopkins University Press, 2003).

55. Gene Dattel, Cotton and Race in the Making of America: The Human Costs of Economic Power (Chicago: Ivan R. Dee, 2009), 98.

56. Guelzo, Abraham Lincoln, 134.

57. Dattel, Cotton and Race in the Making of America, 82.

58. Quoted in Ibid.

59. Jeffrey Rogers Hummel, “The Civil War and Reconstruction,” in Government and the American Economy: A New History, ed. Fishback et al., 192.

60. R. Douglas Hurt, American Agriculture: A Brief History, rev. ed. (West Lafayette, IN: Purdue University Press, 2002), 124.

61. Adam Rothman, “The ‘Slave Power’ in the United States, 1783–1865,” in Ruling America: A History of Wealth and Power in a Democracy, ed. Steve Fraser and Gary Gerstle (Cambridge, MA.: Harvard University Press, 2005), 72–73.

62. Gavin Wright, Slavery and American Economic Development (Baton Rouge: Louisiana State University Press, 2006), 61.

63. William Kauffman Scarborough, Master of the Big House: Elite Slaveholders of the Mid-Nineteenth-Century South (Baton Rouge: Louisiana State University Press, 2006), 12, 241; Rothman, “The ‘Slave Power,’” 72.

64. Lawrence S. Roland, Alexander Moore, and George C. Rogers Jr., The History of Beaufort County, South Carolina, vol. 1, 1514–1861 (Columbia: University of South Carolina Press, 1996), 379–80.

65. “1,648 Slaves in the Estate of Nathaniel Heyward, Charlotte, SC, 1851,” www.fold3.com (accessed December 12, 2011).

66. J. S. Buckingham, The Slave States of America (London: Fisher Son, 1842), 113; quoted in Gavin Wright, “Cheap Labor and Southern Textiles before 1880,” in Industrialization in North America, ed. Peter Temin (Cambridge, MA: Basil Blackwell, 1994), 405.

67. Vatter, The Drive to Industrial Maturity, 5.

68. Friedrich Ratzel, Sketches of Urban and Cultural Life in North America, trans. and ed. Stewart A. Sehlin (New Brunswick, NJ: Rutgers University Press, 1988 [1876]), 147–48; cited in D. W. Meinig, The Shaping of America, vol. 3, Transcontinental America, 1850–1915 (New Haven, CT: Yale University Press, 1999), 225.

69. Niles Weekly Register, xxxv, January 17, 1829, 333; quoted in James R. Gibson Jr., Americans Versus Malthus: The Population Debate in the Early Republic, 1790–1840 (New York: Garland, 1989), 169.

70. David Christy, Cotton Is King: or, Slavery in the Light of Political Economy, 3rd ed., in Cotton Is King, and Pro-Slavery Arguments, ed. E. N. Elliott (Augusta, GA: Pritchard, Abbot & Loomis, 1860), 71; quoted in Michael Hudson, America’s Protectionist Takeoff, 1815–1914: The Neglected American School of Political Economy (Dresden, Germany: Michael Hudson/ISLET-Verlag, 2010), 47.

71. Dattel, Cotton and Race in the Making of America, 82.

72. Ronald Bailey, “The Slave(ry) Trade and the Development of Capitalism in the United States: The Textile Industry in New England,” Social Science History 14, no. 3 (Autumn 1990): 373–414.

73. Quoted in Dattel, Cotton and Race in the Making of America, 88.

74. Ibid., 95–96.

CHAPTER 6: PLAIN MECHANIC POWER: THE CIVIL WAR AND THE SECOND REPUBLIC

1. Herman Melville, “A Utilitarian View of the Monitor’s Fight,” in Battle Pieces and Aspects of the War (New York: Harper Brothers, 1866).

2. William Faulkner, in The Portable Faulkner, ed. Malcolm Cowley (New York: Random House, 1985), 255.

3. Southern Historical Society Papers, new no. ser. 4, whole no. 44 (1923), 171; quoted in Rose Razaghian, “Financing the Civil War: The Confederacy’s Financial Strategy” (working paper, Yale ICF No. 04–45 (New Haven, MA: Yale University, January 2005).

4. James Hammond, “On the Admission of Kansas, under the LeCompton Constitution” (speech, United States Senate, March 4, 1858), http://www .sewanee.edu/faculty/Willis/Civil_War/documents/HammondCotton .html (accessed December 8, 2011).

5. Harold G. Vatter, The Drive to Industrial Maturity: The U.S. Economy, 1860–1914 (Westport, CT: Greenwood Press, 1975), 29.

6. Table 9.4, “Structure of Commodity Trade, 1851–1860,” in Jonathan Hughes and Louis P. Cain, American Economic History, 5th ed. (New York: Addison-Wesley, 1998), 169.

7. Quoted in Gene Dattel, Cotton and Race in the Making of America: The Human Costs of Economic Power (Chicago: Ivan R. Dee, 2009), 169–75.

8. Alvy L. King and Louis T. Wigfall, Southern Fire-Eater (Baton Rouge: Louisiana State University Press, 1970), 126; cited in Gavin Wright, Slavery and American Economic Development (Baton Rouge: Louisiana State University Press, 2006), 82.

9. Quoted in Thomas B. Allen and Roger MacBride Allen, Mr. Lincoln’s High-Tech War: How the North Used the Telegraph, Railroads, Surveillance Balloons, Iron-Clads, High-Powered Weapons, and More to Win the Civil War (Washington, DC: National Geographic, 2009), 69.

10. Jeffrey Rogers Hummel, “The Civil War and Reconstruction,” in Government and the American Economy: A New History, ed. Price Fishback et al. (Chicago and London: University of Chicago Press, 2007), 200.

11. Barbara Freese, Coal: A Human History (New York: Penguin, 2003), 126.

12. Raimondo Luraghi, The Rise and Fall of the Plantation South (New York: New Viewpoints, 1978), 123–32.

13. Ibid., 138.

14. Hummel, “The Civil War and Reconstruction,” 195.

15. Luraghi, The Rise and Fall of the Plantation South, 118–19.

16. Quoted in Robert V. Bruce, Lincoln and the Tools of War (Indianapolis: Bobbs-Merrill, 1956), 140.

17. David Herbert Donald, Lincoln (New York: Simon & Schuster, 1995), 432.

18. Ibid., 431.

19. William Henry Herndon and Jesse William Weik, Herndon’s Life of Lincoln, ed. Paul M. Angle (Cleveland: World, 1942), 478.

20. Abraham Lincoln, “Address before the Wisconsin State Agricultural Society” (speech, Milwaukee, September 30, 1859), http://showcase.netins .net/web/creative/lincoln/speeches/fair.htm (accessed December 6, 2011).

21. Kevin Phillips, The Cousins Wars (New York: Basic Books, 1999), 458.

22. Herndon and Weik, Herndon’s Life of Lincoln, 413.

23. Quoted in Lord Charnwood (Godfrey Rathbone Benson), Abraham Lincoln (Garden City, NY: Henry Holt and Company, 1917), p. 65–66.

24. Quoted in Allen Guelzo, Abraham Lincoln: Redeemer President (Grand Rapids, MI: Wm. B. Eerdmans, 1999), 384.

25. Recollected Words of Abraham Lincoln, ed. Don Fehrenbacher and Virginia Fehrenbacher (Stanford, CA: Stanford University Press, 1996), 37.

26. Edgar DeWitt Jones, The Influence of Henry Clay upon Abraham Lincoln (Lexington, KY: Henry Clay Memorial Foundation, 1952), 33–34.

27. Ibid., 36.

28. The New York Times is cited in Heather Cox Richardson, The Greatest Nation on Earth: Republican Economic Policies during the Civil War (Cambridge, MA: Harvard University Press, 1997), 94; the Indiana Democratic state committee is quoted in Allen C. Guelzo, “Mr. Lincoln’s Economics Primer,” National Review Online, February 12, 2011 (accessed December 15, 2011).

29. Guelzo, Abraham Lincoln: Redeemer President, 170.

30. Leonard P. Curry, Blueprint for Modern America: Nonmilitary Legislation of the First Civil War Congress (Nashville: Vanderbilt University Press, 1968), 116.

31. Ibid., 246–247.

32. Phillips, The Cousins Wars, 449.

33. Richard Franklin Bensel, Yankee Leviathan: The Origins of Central State Authority in America, 1859–1877 (Cambridge, UK: Cambridge University Press, 1990), 252.

34. Abraham Lincoln, The Writings of Abraham Lincoln (Charleston, SC: Forgotten Books, 2008), 5:84.

35. M. R. Eiselen, The Rise of Pennsylvania Protectionism (Philadelphia: University of Pennsylvania Press, 1932), 7; cited in Paul Bairoch, Economics and World History: Myths and Paradoxes (Chicago: University of Chicago Press, 1993), 33.

36. Basler, Lincoln, vol. 1, 313.

37. Gabor Borit, “Old Wine into New Bottles: Abraham Lincoln and the Tariff Reconsidered,” The Historian 28, no. 2 (1966): 309.

38. Reinhard H. Luthin, “Abraham Lincoln and the Tariff,” American Historical Review 49, no. 4 (July 1944): 617.

39. Letter to Noah Swayne, enclosed as copy in Swayne to Carey, February 4, 1865, Carey Papers, box 78; cited in Luthin, “Abraham Lincoln and the Tariff,” 629.

40. Luthin, “Abraham Lincoln and the Tariff,” 619.

41. Bairoch, Economics and World History, 35.

42. Quoted in Ha-Joon Chang, “Kicking Away the Ladder: Infant Industry Protection in Historical Perspective,” Oxford Development Studies 31, no. 1 (2003): 205–26.

43. Alfred E. Eckes, Opening America’s Market: U.S. Foreign Trade Policy Since 1776 (Chapel Hill: University of North Carolina Press, 1995), 30.

44. Frank W. Taussig, Some Aspects of the Tariff Question (Cambridge, MA: Harvard University Press, 1918), 118.

45. Steven A. Sass, “Community and Academic Economists at the University of Pennsylvania,” in Economists and Higher Learning in the Nineteenth Century, ed. William J. Barber (New Brunswick, NJ: Transaction, 1993), 227.

46. Steven A. Sass and Barbara Copperman, “Joseph Wharton’s Argument for Protection,” http://www.h-net.org (accessed November 1, 2011).

47. Sass, “Community and Academic Economists,” 227.

48. Ibid., 227–28.

49. Ibid., 230–31.

50. Quoted in Robert P. Sharkey, Money, Class, and Party: An Economic Study of Civil War and Reconstruction (Baltimore: Johns Hopkins University Press, 1959), 289.

51. Sharkey, Money, Class, and Party, 122–23.

52. Bensel, Yankee Leviathan, 311–12.

53. Sharkey, Money, Class, and Party, 149–52. See also David A. Wells, The Recent Financial, Industrial, and Commercial Experiences of the United States: A Curious Chapter in Politico-Economic History (New York: J. H. and C. M. Goodsell, 1872), 25.

CHAPTER 7: THE IRON HORSE AND THE LIGHTNING

1. Abraham Lincoln, “Second Lecture on Discoveries and Inventions,” in The Collected Works of Abraham Lincoln, ed. Roy P. Basler (New Brunswick, NJ: Rutgers University Press, 1953), 3:356–63.

2. Richard Franklin Bensel, The Political Economy of American Industrialization, 1877–1900 (Cambridge, UK: Cambridge University Press, 2000), 295.

3. Alfred D. Chandler Jr., The Visible Hand: The Managerial Revolution in American Business (Cambridge, MA: Harvard University Press, 1977), 90.

4. Robert D. Atkinson, The Past and Future of America’s Economy: Long Waves of Innovation That Power Cycles of Growth (Cheltenham, UK: Edward Elgar, 2004), 23.

5. Frank Dobbin, Forging Industrial Policy: The United States, Britain, and France in the Railroad Age (Cambridge, UK: Cambridge University Press, 1994), 91.

6. Alasdair Nairn, Engines That Move Markets: Technology Investing from Railroads to the Internet and Beyond (New York: John Wiley, 2002), 63.

7. Herbert Hovenkamp, Enterprise and American Law, 1836–1937 (Cambridge, MA: Harvard University Press, 1991), 148.

8. Dobbin, Forging Industrial Policy, 86.

9. Joan Robinson, The Economics of Imperfect Competition (London: Macmillan, 1933); Edward Chamberlain, The Theory of Monopolistic Competition (Cambridge, MA: Harvard University Press, 1933).

10. James Buchanan, Second Annual Message to Congress on the State of the Union, December 6, 1858, quoted in Dobbin, Forging Industrial Policy, 51.

11. Dobbin, Forging Industrial Policy, 51.

12. Ibid., 54.

13. Ibid., 55.

14. Bill Frezza, “Infrastructure Follies: Railroads, Cleantech, and Crony Capitalism,” Forbes, September 13, 2011.

15. Michael P. Malone, James J. Hill: Empire Builder of the Northwest (Norman: University of Oklahoma Press, 1996), 33.

16. Charles F. Adams Jr. et al., Chapters of Erie, and Other Essays (Boston: James R. Osgood, 1871), 10.

17. Bouck White, The Book of Daniel Drew (Garden City, NY: Doubleday, 1937), 309–10; Irvin G. Wyllie, “Social Darwinism and the Businessman,” Proceedings of the American Philosophical Society 103, no. 5 (October 1959): 633.

18. John F. Stover, American Railroads, 2nd ed. (Chicago: University of Chicago Press, 1997), 103–104.

19. Ronald Campbell, “Jim Fisk, or He Never Went Back on the Poor,” The Hand That Holds the Bread: Progress and Protest in the Gilded Age. Songs from the Civil War to the Columbian Exposition, Anthology of Recorded Music, Inc., 1997.

20. Nairn, Engines That Move Markets, 69–73.

21. Matthew Josephson, The Robber Barons: The Great American Capitalists, 1861–1901 (New Brunswick, NJ: Transaction, 2011), 284.

22. Ron Chernow, Titan: The Life of John D. Rockefeller, Sr. (New York: Random House, 1998), 132.

23. Andrew Carnegie, The Autobiography of Andrew Carnegie (FQ Classics, 2007), 174.

24. Peter Temin, Iron and Steel in the Nineteenth Century (Cambridge, MA: MIT Press, 1964), 113.

25. Quoted in Samuel E. Morison and Henry S. Commager, The Growth of the American Republic (New York: Oxford University Press, 1950), 2:133.

26. David Lewis Cohn, The Good Old Days: A History of American Morals and Manners as Seen through the Sears Roebuck Catalog (New York: Simon & Schuster, 1940).

27. Ellis Paxson Oberholtzer, Jay Cooke: Financier of the Civil War (Philadelphia: George W. Jacobs, 1907), 2:448–449.

28. Charles W. Calomiris, U.S. Bank Deregulation in Historical Perspective (New York: Cambridge University Press, 2000), 3–4.

29. Ibid., 291.

30. Gary Gorton and Lixin Huang, “Panics, Bank Coalitions, and the Origin of Central Banking” (working paper, University of Pennsylvania, May 11, 2011): 7.

31. Calomiris, U.S. Bank Deregulation in Historical Perspective, 18.

32. Ibid.

33. Ibid., 39–40.

34. Angus Maddison, Monitoring the World Economy, 1820–1992 (Paris: Organization for Economic Cooperation and Development, 1995).

35. “Part Two: The Industrial City: Introduction,” in The Making of Urban America, ed. Raymond A. Mohl (Wilmington, DE: Scholarly Resources, 1997), 94.

36. Quoted in American Immigration, vol. 2, Ellis Island: Gateway to America (Danbury, CT: Grolier Educational, 1999), 89.

37. Werner Sollors, “From the Bottom Up: Foreword by Werner Sollors,” in The Life Stories of Undistinguished Americans, As Told by Themselves, ed. Hamilton Holt (New York: Routledge, 1990), xxi.

38. Leo Wolff, Lockout: The Story of the Homestead Strike of 1892: A Study of Violence, Unionism, and the Carnegie Steel Empire (London: Longmans, 1965), 18.

39. Quoted in American Immigration, vol. 2, Ellis Island, 37.

40. Sollors, The Life Stories of Undistinguished Americans, 37.

41. Ibid., 86.

42. Ibid., 45.

43. Ibid., 50.

44. Ibid., 50 and 54.

45. Kevin O’Rourke, Jeffrey Williamson, and Timothy Hamilton, “Mass Migration, Commodity Market Integration, and Real Wage Convergence,” in Migration and the International Labor Market, 1850–1939, ed. Tim Hatton and Jeffrey Williamson (New York: Routledge, 1994).

46. United States Immigration Commission, Abstracts of Reports of the Immigration Commission, (Washington, DC: US Government Printing Office, 1911), 1:531; cited in David M. Gordon, Richard Edwards, and Michael Reich, Segmented Work, Divided Workers: The Historical Transformation of Labor in the United States (Cambridge, UK: Cambridge University Press, 1982), 141; Michael Perelman, Railroading Economics: The Creation of the Free Market Mythology (New York: Monthly Review Press, 2006), 134.

47. James Howard Bridge, The Inside History of the Carnegie Steel Company: A Romance of Millions (New York: Arno Press, 1972), 81.

48. Lawrence B. Glickman, A Living Wage (Ithaca, NY: Cornell University Press, 1997), 87.

49. Ibid.

50. Colleen A. Dunlavy and Thomas Welskopp, “Myths and Peculiarities: Comparing U.S. and German Capitalism,” GHI Bulletin, no. 41 (Fall 2007): 40.

51. Wolff, Lockout, 14.

52. Quoted in Ronald Shillingford, The History of the World’s Greatest Entrepreneurs (The History of the World’s Greatest, 2010), 141.

53. “Eugene Victor Debs: Political Activist,” Debs Foundation Web site, http://debsfoundation.org/politicalactivist.html (accessed December 8, 2011).

54. Because the Judiciary Committee rejected Sherman’s and other amendments, some scholars have argued that Congress indeed considered and rejected the exemption of labor unions from the provisions of the act. But it is doubtful that this was the understanding of the members of the Senate. See Loewe v. Lawlor, 208 US 274, 301 (1908); Edward Berman, Labor and the Sherman Act (New York: Russell & Russell, 1930), 11–51; James A. Emery, “Labor Organization and the Sherman Law,” Journal of Political Economy 20, no. 6 (June 1912): 599, 604–6; Hovenkamp, Enterprise and American Law, 1836–1937, 229.

55. Hovenkamp, Enterprise and American Law, 1836–1937, 238.

56. Richard Franklin Bensel, Yankee Leviathan: The Origins of Central State Authority in America, 1859–1877 (Cambridge, UK: Cambridge University Press, 1991); Bensel, The Political Economy of American Industrialization, 1877–1900.

57. Kevin Phillips, The Cousins Wars (New York: Basic Books, 1999), 458.

58. Ibid.

59. Henry Grady, “Address to the Bay State Club of Boston” (speech, Boston, MA, 1889), http://historymatters.gmu.edu/d/5745/ (accessed December 8, 2011).

60. Douglas A. Blackmon, Slavery by Another Name (New York: Random House, 2008), 358.

61. Sollors, The Life Stories of Undistinguished Americans, 118.

62. Ibid., 120–21.

63. Blackmon, Slavery by Another Name, 375.

64. “First Biennial Report of the Board of Inspectors of Convicts, September 1, 1894, to August 31, 1896” (Montgomery, AL: Roemer Printing, 1896), Alabama Department of Archives and History, quoted in Blackmon, Slavery by Another Name, 57.

65. R. Douglas Hurt, American Agriculture: A Brief History, rev. ed. (West Lafayette, IN: Purdue University Press, 2002), 188–89.

66. C. F. Emerick, “An Analysis of Agricultural Discontent in the United States, Part 1,” Political Science Quarterly 11, no. 3 (September 1896): 456; quoted in Jack Beatty, Age of Betrayal: The Triumph of Money in America, 1865–1900 (New York: Random House, 2008), 105.

67. “People’s Party Platform,’’ Omaha Morning World-Herald, July 5, 1892, http://www.wwnorton.com/college/history/eamerica/media/ch22/ resources/documents/populist.htm (accessed November 1, 2011).

68. The Atlanta Constitution, July 10, 1896; quoted in Richard Franklin Bensel, Passion and Preferences: William Jennings Bryan and the 1896 Democratic Convention (Cambridge, UK: Cambridge University Press, 2008), 1.

69. Henry Adams, The Education of Henry Adams (Boston and New York: Houghton Mifflin, 1905), 344.

70. Vachel Lindsay, “Bryan, Bryan, Bryan, Bryan,” in The Golden Whales of California, and Other Rhymes in the American Language (New York: Macmillan, 1920), 28.

71. John Milton Cooper Jr., Woodrow Wilson: A Biography (New York: Alfred A. Knopf, 2009), 87.

72. Kevin Phillips, William McKinley (New York: Henry Holt, 2003), 126.

73. Edmund Morris, The Rise of Theodore Roosevelt (New York: Modern Library, 1979), 568.

74. Quoted in Bensel, Passion and Preferences, 227–28.

75. The Annals of America, vol. 12, 1895–1904: Populism, Imperialism, and Reform (Chicago: Encyclopedia Britannica, 1968), 100–105.

76. Canton Repository, April 14, 1892; quoted in William H. Armstrong, Major McKinley: William McKinley and the Civil War (Kent, OH: Kent State University Press, 2000), 119.

77. Armstrong, Major McKinley, 133.

78. Franklin Delano Roosevelt, “Commonwealth Club Campaign Speech,” in Peter Augustine Lawler and Robert Martin Schaefer, eds., American Political Rhetoric, 6th ed. (Lanham, MD: Rowman & Littlefield, 2010), 169–176.

CHAPTER 8: FRANKLIN’S BABY: ELECTRICITY, AUTOMOBILES, AND THE SECOND INDUSTRIAL REVOLUTION

1. Alfred North Whitehead, Science and the Modern World (Cambridge, UK: Cambridge University Press, 1926), 120.

2. Quoted in H. W. Brands, The First American: The Life and Times of Benjamin Franklin (New York: Doubleday, 2000), 202.

3. Jill Jonnes, Empires of Light: Edison, Tesla, Westinghouse, and the Race to Electrify the World (New York: Random House, 2003), 27–28.

4. This account follows Richard G. Lipsey, Kenneth I. Carlaw, and Clifford T. Bekar, Economic Transformations: General Purpose Technologies and Long Term Economic Growth (New York: Oxford University Press, 2005), 254–55.

5. Henry Adams, The Education of Henry Adams (Boston and New York: Houghton Mifflin, 2000), 380.

6. Seymour L. Chapin, “A Legendary Bon Mot? Franklin’s ‘What Is the Good of a Newborn Baby?’ ” Proceedings of the American Philosophical Society 129, no. 3 (1985): 278–90.

7. Quoted in Bence Jones, Life and Letters of Michael Faraday, vol. 1 (London: Spottiswoode, 1879), 218; Bernard Cohen, “Faraday and Franklin’s ‘Newborn Baby,’ ” Proceedings of the American Philosophical Society 131, no. 2 (June 1987): 35.

8. Joel Mokyr, “The Second Industrial Revolution, 1870–1914” (working paper, Northwestern University, August 1998), 1.

9. Gary Cross and Rick Szostak, Technology and American Society: A History (Englewood Cliffs, NJ: Prentice-Hall, 1995), 164.

10. John T. Ratzlaff, ed., Tesla Said (Millbrae, CA: Tesla Book Company, 1984), 280; Jonnes, Empires of Light, 105.

11. Cross and Szostak, Technology and American Society, 166.

12. Mary Bellis, “The History of Fluorescent Lights,” About.com, “Inventors,” inventors.about.com, accessed December 30, 2011.

13. Quoted in Jonnes, Empires of Light, 178.

14. Vaclav Smil, Energies: An Illustrated Guide to the Biosphere and Civilization (Cambridge, MA: MIT Press, 2000), 157.

15. R. F. Hirsh, Technology and Transformation in the American Electric Utility Industry (Cambridge, UK: Cambridge University Press, 1989), 20–21.

16. Smil, Energies, 151.

17. Barbara Freese, Coal: A Human History (New York: Penguin, 2003), 137.

18. Smil, Energies, 140.

19. Holland Thompson, The Age of Invention: A Chronicle of Mechanical Conquest (New Haven, CT: Yale University Press, 1921), 59 and 61.

20. Mokyr, “The Second Industrial Revolution, 1870–1914,” 5.

21. Ibid., 4–5.

22. Ibid., 11.

23. Louis Ferleger and William Lazonick, “The Managerial Revolution and the Developmental State: The Case of U.S. Agriculture,” Business and Economic History 22, no. 2 (Winter 1993): 78.

24. Ibid., 73.

25. Table 3.1, “Estimated Government Expenditures on Aviation, 1908–1913,” in Vernon W. Ruttan, Is War Necessary for Economic Growth? Military Procurement and Technology Development (New York: Oxford University Press, 2006), 39.

26. Ibid., 33.

27. Ibid., 38.

28. Ibid., 42–43.

29. Peter J. Hugill, Global Communications Since 1844: Geopolitics and Technology (Baltimore: Johns Hopkins University Press, 1999), 226.

30. Cross and Szostak, Technology and American Society, 266.

31. James E. Vance, The Continuing City (Baltimore: Johns Hopkins University Press, 1990), 384.

32. Ibid., 386–87.

33. Ibid., 469.

34. Ibid., 374–76.

35. Ibid., 473.

36. Bruce Bliven Jr., The Wonderful Writing Machine (New York: Random House, 1954), 62.

CHAPTER 9: THE DAY OF COMBINATION

1. Henry Adams, The Education of Henry Adams (Boston and New York: Houghton Mifflin, 2000), 344.

2. Allan Nevins, John D. Rockefeller (New York: Charles Scribner’s Sons, 1959), 1:622.

3. John Bates Clark, The Control of Trusts (New York: Macmillan, 1901), 17; quoted in Walter Adams and James W. Brock, The Bigness Complex: Industry, Labor, and Government in the American Economy (New York: Pantheon Books, 1986), 25.

4. Adolf A. Berle and Gardner C. Means, The Modern Corporation and Private Property, rev. ed. (New York: Harcourt, Brace & World, 1932), 34.

5. Nevins, John D. Rockefeller, 1:622nii.

6. Jean Strouse, Morgan: American Financier (New York: HarperCollins, 1999), 310.

7. Sanford Gordon, “The Significance of Public Opinion in the Passage of the Sherman Act” (PhD diss., New York University, 1953).

8. Richard T. Ely, “The Nature and Significance of Corporations,” Harper’s Magazine 75 (June/November 1887): 71 and 75; quoted in William L. Letwin, “Congress and the Sherman Antitrust Law: 1887–1890,” University of Chicago Law Review 23, no. 2 (Winter 1956): 238.

9. David Ames Wells, Recent Economic Changes (New York: D. Appleton, 1889), 74; quoted in Letwin, “Congress and the Sherman Antitrust Law: 1887–1890,” 237.

10. Wells, Recent Economic Changes, 74–75.

11. John Bates Clark, “The Limits of Competition,” reprinted in John Bates Clark and Franklin H. Giddings, The Modern Distributive Process (Boston: Ginn, 1888), 11; quoted in Letwin, “Congress and the Sherman Antitrust Law: 1887–1890,” 238.

12. Naomi R. Lamoreaux, The Great Merger Movement in American Business, 1895–1904 (Cambridge, UK: Cambridge University Press, 1985), 1.

13. Ibid., 2.

14. Table 1.2, “Market Shares of Consolidations,” in ibid., 3–4.

15. Adams and Brock, The Bigness Complex, 25–27.

16. Moody is quoted in Louis D. Brandeis, Other People’s Money and How the Bankers Use It, ed. Richard Abrams (New York: Frederick A. Stokes, 1914), vii–xvi.

17. Alfred D. Chandler Jr., Scale and Scope: The Dynamics of Industrial Capitalism (Cambridge, MA: Belknap Press of Harvard University Press, 1990), 128–29.

18. John F. Stover, American Railroads, 2nd ed. (Chicago: University of Chicago Press, 1997), 93; David Mark Chalmers, Neither Socialism nor Monopoly: Theodore Roosevelt and the Decision to Regulate the Railroads (New York: Lippencott, 1976), 1.; Frank Dobbin, Forging Industrial Policy: The United States, Britain, and France in the Railroad Age (Cambridge, UK: Cambridge University Press, 1994), 90.

19. Charles W. Calomiris, U.S. Bank Deregulation in Historical Perspective (New York: Cambridge University Press, 2000), 244–45.

20. Charles W. Calomiris, “Universal Banking and the Financing of Industrial Development” (policy research working paper 1533, World Bank, Washington, DC, 1995), 7.

21. Miguel Cantillo Simon, “The Rise and Fall of Bank Control in the United States: 1890–1939,” American Economic Review 88, no. 5 (December 1998): 1081–82.

22. John Steel Gordon, “The Magnitude of J. P. Morgan,” American Heritage (July–August 1989).

23. J. Bradford De Long, “What Morgan Wrought,” Wilson Quarterly 16, no. 4 (August 1992): 22.

24. Chandler, Scale and Scope, 21–23; Thomas K. McCraw, “Rethinking the Trust Question,” in Regulation in Perspective, ed. Thomas K. McCraw (Cambridge, MA: Harvard University Press, 1981), 1–55; cited in Strouse, Morgan, 315–16, footnote.

25. De Long, “What Morgan Wrought,” 24.

26. Henry George, A Perplexed Philosopher (New York: Charles Webster, 1892), 164; quoted in Sidney Fine, Laissez Faire and the General-Welfare State: A Study of Conflict in American Thought, 1865–1901 (Ann Arbor: University of Michigan Press, 1978), 44.

27. See Chapter 1, note 15, supra.

28. Henry Carter Adams, “Relation of the State to Industrial Action,” Publications of the American Economic Association 1, no. 6 (January 1887): 64; quoted in Letwin, “Congress and the Sherman Antitrust Law: 1887–1890,” 239.

29. Herbert Croly, The Promise of American Life (New York: Macmillan, 1914), 362.

30. Quoted in Doug Henwood, “Old Livernose and the Plungers: J. Pierpont Morgan and T. Boone Pickens,” Grand Street 7, no. 1: 183.

31. Matthew Josephson, The Robber Barons: The Great American Capitalists, 1861–1901 (New York: Harcourt, Brace, 1934), 448.

32. Theodore Roosevelt, “Second Annual Message to Congress,” speech, Washington, DC, 1902, http://millercenter.org/president/speeches/detail/ 3774 (accessed November 2, 2011).

33. Theodore Roosevelt, “The New Nationalism” (speech, Osawatomie, Kansas, August 13, 1910), http://teachingamericanhistory.org/library/index.asp?document=501 (accessed December 8, 2011).

34. Quoted in Strouse, Morgan, 439–40.

35. Bob Batchelor, The 1900s (Westport, CT: Greenwood, 2002), 18.

36. Congressional Record 43 (1909), pt. 2, 1395; quoted in Lamoreaux, The Great Merger Movement, 173.

37. Woodrow Wilson, “The Puritan” (December 22, 1900), in The Papers of Woodrow Wilson, ed. Arthur S. Link (Princeton, NJ: Princeton University Press, 1966–1994), 1:365.

38. Woodrow Wilson, “Law or Personal Power” (address delivered before the National Democratic Club, New York, April 13, 1908), in The Papers of Woodrow Wilson, 2:30–31.

39. Woodrow Wilson, “What Jefferson Would Do,” in The Papers of Woodrow Wilson, 2:424.

40. Woodrow Wilson, “The Tariff and the Trusts” (February 24, 1912), The Papers of Woodrow Wilson, 2:410–11.

41. Woodrow Wilson, “Acceptance Address” (Seagirt, NJ, April 7, 1912, Official Report of the Democratic National Committee), 407; quoted in Martin J. Sklar, The Corporate Reconstruction of American Capitalism, 1890–1916: The Market, the Law, and Politics (Cambridge, UK: Cambridge University Press, 1988), 419.

42. Quoted in Thomas McCraw, Prophets of Regulation: Charles Francis Adams, Louis D. Brandeis, James M. Landis, Alfred Kahn (Cambridge, MA: Harvard University Press, 1984), 108.

43. Brandeis, Other People’s Money, 4–5.

44. Charles Francis Adams, Statement of December 15, 1884, 4 Ry & Corp. L.J. 579 (1888); quoted in Letwin, “Congress and the Sherman Antitrust Law: 1887–1890,” 223.

45. Ida Tarbell, All in the Day’s Work (New York: Macmillan, 1939), 364; quoted in Strouse, Morgan, 622.

46. Brandeis, Other People’s Money, 51.

47. Quoted in Ron Chernow, Titan: The Life of John D. Rockefeller, Sr. (New York: Random House, 1998), 541.

CHAPTER 10: THE NEW ERA

1. Herbert Hoover, Nation’s Business, June 5, 1924, 7–8; quoted in Butler Shaffer, In Restraint of Trade: The Business Campaign Against Competition, 1918–1938 (Cranbury, NJ: Associated University Presses, 1997), 52.

2. Gary Cross and Rick Szostak, Technology and American Society: A History (Englewood Cliffs, NJ: Prentice-Hall, 1995), 194.

3. Marc Allen Eisner, From Warfare State to Welfare State: World War I, Compensatory State Building, and the Limits of the Modern Order (University Park: Pennsylvania State University Press, 2000), 60.

4. Ibid.

5. Paul A. C. Koistinen, Mobilizing for Modern War: The Political Economy of American Warfare, 1865–1919 (Lawrence: University Press of Kansas, 1997), 116.

6. Eisner, From Warfare State to Welfare State, 52.

7. Koistinen, Mobilizing for Modern War, 121.

8. Jeff Frieden, “Sectoral Conflict and Foreign Economic Policy, 1914–1940,” International Organization 42, no. 1 (Winter 1988): 71.

9. F. Carrington Weems, America and Munitions: The Works of Messrs. J. P. Morgan & Co. in the World War (New York: Privately printed, 1923), 268; quoted in Koistinen, Mobilizing for Modern War, 115.

10. Table 6.2, “The Financing of World War I, World War II, and the Korean War (Billions of Dollars),” in Michael Edelstein, “War and the American Economy in the Twentieth Century,” in The Cambridge Economic History of the United States, ed. Stanley L. Engermann and Robert E. Gallman (Cambridge, UK: Cambridge University Press), 3:351.

11. Koistinen, Mobilizing for Modern War, 264.

12. Ibid., 265.

13. Eisner, From Warfare State to Welfare State, 55.

14. Edmund M. Coffman, The War to End All Wars: The American Military Experience in World War I (Lexington: University Press of Kentucky, 1967), 15.

15. Koistinen, Mobilizing for Modern War, 211.

16. Eisner, From Warfare State to Welfare State, 65.

17. Koistinen, Mobilizing for Modern War, 212.

18. Eisner, From Warfare State to Welfare State, 73.

19. Koistinen, Mobilizing for Modern War, 262.

20. Eisner, From Warfare State to Welfare State, 68.

21. “Herbert Hoover,” The White House, www.whitehouse.gov (accessed November 1, 2011).

22. Koistinen, Mobilizing for Modern War, 281–85.

23. Eisner, From Warfare State to Welfare State, 81.

24. Bernard Baruch, American Industry in the War (New York: Prentice-Hall, 1941), 104.

25. Koistinen, Mobilizing for Modern War, 279.

26. Eric F. Goldman, Rendezvous with Destiny: A History of Modern American Reform (New York: Alfred A. Knopf, 1958), 307–308, quoted in Eisner, From Warfare State to Welfare State, 90.

27. Daniel Yergin, The Quest: Energy, Security, and the Remaking of the Modern World (New York: Penguin, 2011), 675.

28. Cross and Szostak, Technology and American Society, 234.

29. Ton Korver, The Fictitious Commodity: A Study of the U.S. Labor Market, 1880–1940 (New York: Greenwood Press, 1990), 108.

30. Edward J. Taaffe, Howard L. Gauthier, and Morton E. O’Kelley, Geography of Transportation (Upper Saddle River, NJ: Prentice-Hall, 1973), 176.

31. Cross and Szostak, Technology and American Society, 235.

32. Yergin, The Quest, 674.

33. Quoted in David A. Hounshell, From the American System to Mass Production, 1800–1932: The Development of Manufacturing Technology in the United States (Baltimore and London: Johns Hopkins University Press, 1984), 1.

34. Henry Ford, “Mass Production,” Encyclopaedia Britannica (1926).

35. Yergin, The Quest, 234.

36. Ibid., 345.

37. Thomas Parke Hughes, American Genesis: A Century of Invention and Technological Evolution, 1870–1970 (Chicago: University of Chicago Press, 2004), 230.

38. Bob Ortega, In Sam We Trust: The Untold Story of Sam Walton and How Wal-Mart Is Devouring the World (New York: Random House, 1998), 39.

39. Peter Fearon, The Origins and Nature of the Great Slump, 1929–1932 (London and Basingstoke, UK: Macmillan, 1979), 29.

40. R. I. Nelson, Merger Movements in American History, 1895–1956 (Princeton, NJ: Princeton University Press, 1959), 94.

41. Adolf A. Berle and Gardiner C. Means, The Modern Corporation and Private Property (New York: Harcourt, Brace & World, 1932), 56; William Lazonick and Mary O’Sullivan, “Finance and Industrial Development, Part I: The United States and the United Kingdom,” Financial History Review 4 (1997): 7–29.

42. Ellis W. Hawley, “Herbert Hoover, the Commerce Secretariat, and the Vision of an ‘Associative State,’ 1921–28,” Journal of American History 61, no. 1 (June 1974): 128.

43. Ibid., 129.

44. Oswald Garrison Villard, “Presidential Possibilities: Herbert C. Hoover,” The Nation, February 29, 1928, 235.

45. William Edward Leuchtenberg, Herbert Hoover (New York: Henry Holt, 2009), 148.

46. Ibid., 82.

47. Herbert Hoover, American Individualism (New York: Doubleday, Page, 1923), 11.

48. Herbert Clark Hoover, The Memoirs of Herbert Hoover: The Cabinet and the Presidency, 1920–1933 (New York: Macmillan, 1952), 2:108.

49. Hawley, “Herbert Hoover,” 132.

50. Eugene Lyons, Our Unknown Ex-President: A Portrait of Herbert Hoover (Garden City, NY: Doubleday, 1948), 231.

51. Hawley, “Herbert Hoover,” 118n7.

52. Frederic M. Scherer, “International Competition Policy and Economic Development,” Discussion Paper no. 96–26, Zentrum für Europäische Wirtschaftsforschung, Industrial Economics and International Management Series, 9. See also Frederic M. Scherer, Competition Policies for an Integrated World Economy (Washington, DC: Brookings Institution, 1994).

53. Andrew R. Dick, “When Are Cartels Stable Contracts?” Journal of Law Economics 39, no. 1 (April 1996): 246–47.

54. Ibid., 246.

55. Ibid., 249.

56. Wyatt Wells, Antitrust and the Formation of the Postwar World (New York: Columbia University Press, 2002), 20–21.

57. Vernon M. Briggs, Immigration and American Unionism (Ithaca, NY: Cornell University Press, 2001), 97.

58. Harry A. Millis and Royal E. Montgomery, Labor’s Progress and Some Basic Labor Problems (New York: McGraw-Hill, 1938), 31.

59. Stanley Lebergott, Manpower in Economic Growth: The American Record Since 1800 (New York: McGraw-Hill, 1964), 27.

60. Frank Stricker, “Affluence for Whom? Another Look at Prosperity and the Working Class in the 1920s,” in The Labor History Reader, ed. Daniel J. Leab (Urbana and Chicago: University of Illinois, 1985), 76.

61. William E. Leuchtenberg, The Perils of Prosperity: 1914–1932 (Chicago and London: University of Chicago Press, 1958), 179ff.

62. Cross and Szostak, Technology and American Society, 230.

63. Ibid., 230.

64. Gene Smiley, “The U.S. Economy in the 1920s,” Economic History Services, http://eh.net/encyclopedia/article/smiley.1920s.final (accessed November 2, 2011).

65. Leuchtenberg, The Perils of Prosperity; Korver, The Fictitious Commodity, 96.

66. Robert P. Keller, “Factor Income Distribution in the United States during the 1920’s: A Re-examination of Fact and Theory,” Journal of Economic History 33, no. 1, The Tasks of Economic History (March 1973): 252–73.

67. Leuchtenberg, The Perils of Prosperity, 193.

68. Stricker, “Affluence for Whom?,” 296, graph 1; Korver, The Fictitious Commodity, 125.

69. Charles F. Holt, “Who Benefited from the Prosperity of the Twenties?” Explorations in Economic History 14, no. 3 (Summer 1977): 277–89.

70. Fearon, The Origins and Nature of the Great Slump, 34.

71. Table 13, “Percent Distribution of the World’s Manufacturing Production, 1913–38,” in A. G. Kenwood and A. L. Lougheed, The Growth of the International Economy, 1820–1980 (London: Allen & Unwin, 1983), 183.

72. James D. Richardson, ed., Messages and Papers of the Presidents (Washington, DC: US Government Printing Office, 1896–99), 6403; quoted in Alfred E. Eckes Jr., Opening America’s Market (Chapel Hill: University of North Carolina Press, 1995), 77–78.

73. Congressional Record 35, pts. 3–5, 57th Cong., 1st Sess. (27 February 1902), 2201–2202.

74. Paul Bairoch, “International Industrialization Levels, 1750–1980,” Journal of European Economic History 11 (1982): 292, 299.

75. Herman Schwartz, “Hegemony, International Debt, and International Economic Instability,” in Chronis Polychroniu, ed., Perspectives and Issues in International Political Economy (New York: Praeger, 1992).

76. Jeff Frieden, “Sectoral Conflict and Foreign Economic Policy, 1914–1940,” International Organization 42, no. 1, The State and American Foreign Policy (Winter 1998): 63–64.

77. Quoted in Mary Jane Maltz, The Many Lives of Otto Kahn (New York: Macmillan, 1963), 204; cited in Frieden, “Sectoral Conflict and Foreign Economic Policy.”

78. Quoted in David Burner, Herbert Hoover: A Public Life (New York: Alfred A. Knopf, 1979), 186; cited in Frieden, “Sectoral Conflict and Foreign Economic Policy,” 80.

79. Quoted in Dan P. Silverman, Reconstructing Europe after the Great War (Cambridge, MA: Harvard University Press, 1982), 239; Frieden, “Sectoral Conflict and Foreign Economic Policy, 1914–1940,” 59–90.

80. Fred L. Israel, ed., The State of the Union Messages of the Presidents (New York: Chelsea House, 1967), 3:2693; quoted in Alfred E. Eckes Jr., Opening America’s Market (Chapel Hill: University of North Carolina Press, 1995), 301n56.

81. Norman H. Davis, “Trade Barriers and Customs Duties,” Proceedings of the Academy of Political Science 12, no. 4 (January 1928): 69–76; quoted in Jeffrey A. Frieden, Banking on the World: The Politics of American International Finance (New York: Harper & Row, 1987), 50.

CHAPTER 11: A NEW DEAL FOR AMERICA

1. Franklin Delano Roosevelt, Address at the Democratic State Convention, Syracuse, New York, September 29, 1936.

2. William E. Leuchtenberg, Herbert Hoover (New York: Henry Holt, 2009), 129. On the 1929 crash and what led up to it, see John Kenneth Galbraith, The Great Crash 1929, 50th anniversary edition (New York: Houghton Mifflin, 1988); Liaquat Ahamed, Lords of Finance: The Bankers Who Broke the World (New York: Penguin, 2009).

3. Jude Wanniski, The Way the World Works (New York: Basic Books, 1978), 125.

4. Richard N. Cooper, “Trade Policy as Foreign Policy,” in U.S. Trade Policies in a Changing World Economy, ed. Robert M. Stern (Cambridge, MA: MIT Press, 1987), 291–92.

5. Alfred E. Eckes Jr., Opening America’s Market (Chapel Hill: University of North Carolina Press, 1995), 108.

6. Peter Temin, Lessons from the Great Depression (Cambridge, MA: MIT Press, 1989), 46.

7. See Gertrud M. Fremling, “Did the United States Transmit the Great Depression to the Rest of the World?” American Economic Review 75, no. 5 (December 1985): 1181–85; Ian Fletcher, “Protectionism Didn’t Cause the Great Depression,” Huffington Post, April 6, 2010.

8. Barry Eichengreen, “The Political Economy of the Smoot-Hawley Tariff,” in Research in Economic History, ed. Roger L. Ransom (Greenwich, CT: JAI Press, 1989), 12:25–29.

9. Milton Friedman and Anna Jacobson Schwartz, A Monetary History of the United States, 1867–1960 (Princeton, NJ: Princeton University Press, 1963).

10. For different interpretations of the Great Depression, see John Kenneth Galbraith, The Great Crash: 1929 (Boston: Houghton Mifflin, 1954); Friedman and Schwartz, A Monetary History of the United States; Milton Friedman and Anna Jacobson Schwartz, The Great Contraction 1929–1933 (Princeton: Princeton University Press, 1965); Peter Temin, Did Monetary Forces Cause the Great Depression? (New York: Norton, 1976); Barry J. Eichengreen, Golden Feathers: The Gold Standard and the Great Depression (New York: Oxford University Press, 1996); Liaquat Ahamed, Lords of Finance: The Bankers Who Broke the World (New York: Penguin Press, 2009).

11. William Trufant Foster and Waddill Catchings, Profits (Boston and New York: Houghton Mifflin, 1925); Business Without a Buyer (Boston: Houghton Mifflin, 1927); The Road to Plenty (Boston and New York: Houghton Mifflin, 1928); Progress and Plenty (Pollack Foundation for Economic Research, 1929); Money (Boston and New York: Houghton Mifflin, 1932).

12. Edward A. Filene, Successful Living in This Machine Age (New York: Simon & Schuster, 1932), 45.

13. Marriner Stoddard Eccles, Beckoning Frontiers (New York: Alfred A. Knopf, 1951), 77.

14. Donald J. Beaudreaux, Globalization (Westport, CT: Greenwood Press, 2008), 112.

15. Herbert Hoover, “Address Accepting the Republican Presidential Nomination” (speech, Washington, DC, August 11, 1932), http://american history.about.com/library/docs/blhooverspeech1932.htm (accessed November 2, 2011).

16. Walter Lippmann, “The Permanent New Deal,” Yale Review 24 (1935): 649–67.

17. Marc Allen Eisner, From Warfare State to Welfare State: World War I, Compensatory State Building, and the Limits of the Modern Order (University Park: Pennsylvania State University Press, 2000), 276.

18. Ibid.

19. Murray Newton Rothbard, America’s Great Depression (Kansas City, KS: Sheed & Ward, 1975), 217; J. M. Clark, “Public Works and Unemployment,” American Economic Review, Papers and Proceedings (May 1930), 15ff.

20. Eisner, From Warfare State to Welfare State, 278.

21. Rothbard, America’s Great Depression, 243.

22. Ibid., 44.

23. Eisner, From Warfare State to Welfare State, 284; Gerald D. Nash, “Herbert Hoover and the Origins of the Reconstruction Finance Corporation,” Mississippi Valley Historical Review 46, no. 3 (December 1959): 455–68.

24. William John Shultz and M. R. Caine, Financial Development of the United States (New York: Prentice-Hall, 1937), 656; Eisner, From Warfare State to Welfare State, 290.

25. Eisner, From Warfare State to Welfare State, 296.

26. Hoover memorandum quoted in William Starr Myers and Walter Hughes Newton, The Hoover Administration: A Documented Narrative (London: Charles Scribner’s Sons, 1936), 119.

27. Quoted in Myers and Newton, The Hoover Administration, 249–50.

28. Roy F. Harrod, The Life of John Maynard Keynes (New York: Harcourt Brace, 1951), 437–48.

29. Paul Krugman, The Return of Depression Economics and the Crisis of 2008 (New York: W. W. Norton, 2008).

30. Herbert Hoover, The Memoirs of Herbert Hoover: The Great Depression, 1929–1941 (New York: Macmillan, 1952).

31. Quoted in Edward Angly, Oh Yeah? (New York: Viking, 1931), 22; Rothbard, America’s Great Depression, 268.

32. Quoted in Paul Johnson, A History of the American People (New York: HarperCollins, 1998), 741.

33. Quoted in Diego Pizano, Conversations with Great Economists: Friedrich A. Hayek, John Hicks, Nicholas Kaldor, Leonid V. Kantorovich, Joan Robinson, Paul A. Samuelson, Jan Tinbergen (Mexico City: Jorge Pinto Books, 2008).

34. Rothbard, America’s Great Depression, 308.

35. Henry C. Simons, Economic Policy for a Free Society (Chicago: University of Chicago Press, 1948), 75.

36. Quoted in Johnson, A History of the American People, 741; John Hoff Wilson, Herbert Hoover: Forgotten Progressive (Boston: Little Brown, 1974).

37. Daniel R. Fusfeld, The Economic Thought of Franklin D. Roosevelt and the Origins of the New Deal (New York: Columbia University Press, 1956), 267.

38. Herbert Hoover, “Address Accepting the Republican Presidential Nomination,” http://americanhistory.about.com/library/docs/blhooverspeech1932 .htm (accessed November 2, 2011).

39. Leuchtenberg, Herbert Hoover, 134.

40. Quoted in Jordan A. Schwarz, The Interregnum of Despair: Hoover, Congress, and the Depression (Urbana: University of Illinois Press, 1970), 174.

41. Hoover, The Memoirs of Herbert Hoover, 1929–1941, vol. 3.

42. Thomas Ferguson, “From Normalcy to New Deal: Industrial Structure, Party Competition and American Public Policy During the Great Depression,” International Organization 38, no. 1 (Winter 1984): 41–94; Thomas Ferguson, “Industrial Conflict and the Coming of the New Deal: The Triumph of Multinational Liberalism in America,” in The Rise and Fall of the New Deal Order, 1930–1980, ed. Steve Fraser and Gary Gerstle (New York: Oxford University Press, 2007), 3–31.

43. Franklin Delano Roosevelt, First Inaugural Address, March 4, 1933, in Davis W. Houck, FDR and Fear Itself: The First Inaugural Address (College Station: Texas A&M University Press, 2002), 3–8.

44. William L. Silber, “Why Did FDR’s Bank Holiday Succeed?” Federal Reserve Bank of New York, Economic Policy Review 15, no. 1 (July 2009): 19–30.

45. Charles W. Calomiris, U.S. Bank Deregulation in Historical Perspective (New York: Cambridge University Press, 2000), 175.

46. Franklin Delano Roosevelt, Public Papers and Addresses of Franklin D. Roosevelt, vol. 1, The Genesis of the New Deal, 1928–32 (New York: Random House, 1938); quoted in Ronald Edsforth, The New Deal: America’s Response to the Great Depression (Malden, MA: Blackwell, 2000), 57.

47. Arthur M. Schlesinger Jr., The Age of Roosevelt, vol. 2, The Coming of the New Deal (Boston: Houghton Mifflin, 1958), 96–98.

48. John Patick Diggins, Mussolini and Fascism: The View from America (Princeton, NJ: Princeton University Press, 1972), 280.

49. Ibid., 279.

50. “Churchill Extols Fascismo for Italy,” New York Times, January 21, 1927.

51. Ludwig von Mises, Liberalism in the Classical Tradition, 3rd ed. (Irvington-on-Hudson, NY, and San Francisco: Foundation for Economic Education and Cobden Press, 1985), 51.

52. Franklin D. Roosevelt, “The Forgotten Man” (speech, Albany, New York, April 7, 1932), in Public Papers and Addresses of Franklin D. Roosevelt, vol. 1, The Year of Crisis 1933 (New York: Random House, 1938), 625.

53. Harold Laski, “The Roosevelt Experiment,” Atlantic, February 1934.

54. Franklin D. Roosevelt: “Statement on Signing the National Industrial Recovery Act,” June 16, 1933, American Presidency Project, http://www .presidency.ucsb.edu/ws/?pid=14669 (accessed October 5, 2011).

55. Harriman, quoted in the New York Times, July 25, 1933, 2.

56. New York Times, July 25, 1933, 2.

57. John Maynard Keynes, “An Open Letter to President Roosevelt,” New York Times, December 31, 1933.

58. Arthur M. Schlesinger, The Age of Roosevelt, vol. 3, The Politics of Upheaval (Boston: Houghton Mifflin, 1958), 96–98, 404–406; quoted in Michael Janeway, The Fall of the House of Roosevelt: Brokers of Ideas and Power from FDR to LBJ (New York: Columbia University Press, 2004), 37.

59. Roosevelt, “The Forgotten Man,” 625.

60. Quoted in Jordan A. Schwarz, The Speculator: Bernard M. Baruch in Washington, 1917–1965 (Chapel Hill: University of North Carolina Press, 1981), 288.

61. Butler Shaffer, In Restraint of Trade: The Business Campaign Against Competition, 1918–1938 (Cranbury, NJ: Associated University Presses, 1997), 234.

62. R. Alan Lawson, A Commonwealth of Hope: The New Deal Response to Crisis (Baltimore: Johns Hopkins University Press, 2006), 89.

63. Thomas G. Corcoran, “Rendezvous with Destiny,” unpublished memoir, draft for “Law of Unintended Consequences” chapter, 9–10, Corcoran Papers, box 589, Library of Congress; quoted in Janeway, The Fall of the House of Roosevelt, 5. See also Schlesinger, The Age of Roosevelt, vol. 3, The Politics of Upheaval, 280.

64. Amity Shlaes, The Forgotten Man: A New History of the Great Depression (New York: HarperCollins, 2007).

65. “Arch Foes of NRA Vote for New Deal; All 16 Ballots in the Schechter Family Went to President Poultry Man Reveals,” New York Times, November 4, 1936; quoted in Eric Rauchway, “Big Gonif, Redux,” December 2, 2008, The Edge of the American West (blog), http://edgeofthewest .wordpress.com/2008/12/02/big-gonif-redux/ (accessed October 5, 2011).

66. Gerald Starr, Minimum Wage Fixing (Geneva: International Labor Organization, 1981), 4–5.

67. Social Security Online, Research Note # 23, “Luther Gulick Memorandum,” www.socialsecurity.gov (accessed December 12, 2011).

68. Dale Russakoff, “In Second Coal Rush, New Mind-Set in the Mines,” Washington Post, November 16, 2006.

69. Irving Bernstein, The New Deal Collective Bargaining Policy (Berkeley: University of California Press, 1950), 25–26.

70. Winifred D. Wandersee, “‘I’d Rather Pass a Law Than Organize a Union’: Frances Perkins and the Reformist Approach to Organized Labor.” Labor History, 34.1 (1993): 5–32.

71. Eisner, From Warfare State to Welfare State, 333.

72. Quoted in Richard O. Boyer and Herbert Morais, Labor’s Untold Story, 3rd ed. (New York: United Electrical, Radio, and Machine Workers of America [UE], 1980), 295.

73. Roosevelt to Edward Mandell House (November 21, 1933), quoted in F.D.R.: His Personal Letters, 1928–1945, ed. Elliott Roosevelt (New York: Duell, Sloan and Pearce, 1950), 373.

74. Frankin Delano Roosevelt, “Message to Congress on Curbing Monopolies” (speech, Washington, DC, April 29, 1938), http://www.presidency.ucsb.edu /ws/index.php?pid=15637#axzz1dirYhSso (accessed November 14, 2011).

75. Marc Allen Eisner, Antitrust and the Triumph of Economics: Institutions, Expertise, and Policy Change (Chapel Hill: University of North Carolina Press, 1991), 77–83.

76. Wyatt Wells, Antitrust and the Formation of the Postwar World (New York: Columbia University Press, 2002), 41–42.

77. Thurman Arnold, Democracy and Free Enterprise (Norman: University of Oklahoma Press, 1941), 37; quoted in Jordan A. Schwarz, The New Dealers: Power Politics in the Age of Roosevelt (New York: Knopf, 1993), xi; Janeway, The Fall of the House of Roosevelt, 37.

78. Quoted in Gaudi B. Eggertsson et al., The Mistake of 1937: A General Equilibrium Analysis (Institute of Monetary and Economic Studies, Bank of Japan, 2006), 25.

79. Douglas A. Irwin, “Gold Sterilization and the Recession of 1937–38” (working paper, Dartmouth College and NBER, September 9, 2011).

80. William O. Douglas, Go East, Young Man (New York: Random House, 1974), 284; quoted in Janeway, The Fall of the House of Roosevelt, 37.

81. Jordan A. Schwarz, Liberal: Adolf A. Berle and the Vision of an American Era (New York: The Free Press, 1987), 111–13.

82. Michael Keaney, ed., John Kenneth Galbraith: Economist with a Public Purpose (New York: Routledge, 2004), 224.

83. Lauchlin Currie, Memoirs (1952), unpublished, p. 85; quoted in Roger J. Sandilands, The Life and Political Economy of Lauchlin Currie: New Dealer, Political Advisor, and Development Expert (Durham, NC: Duke University Press, 1990), 94.

84. Christina Romer, “What Ended the Great Depression?” Journal of Economic History 52, no. 4 (December 1992): 757.

85. Eggertsson et al., The Mistake of 1937.

86. US Bureau of the Census, Historical Statistics of the United States: Colonial Times to 1957 (Washington, DC: US Government Printing Office, 1969); Michael Darby, “Three and a Half Million U.S. Employees Have Been Mislaid: Or an Explanation of Unemployment 1934–1941,” Journal of Political Economy 84, no. 1 (February 1976): 1–16.

87. Edsforth, The New Deal, 287.

88. Figure 10.1, “WPA’s Contribution to Infrastructure, 1935–43, Based on U.S. Federal Works Agency, Final Report on the WPA Program 1935–43 (Washington: Government Printing Office, 1947),” in Edsforth, The New Deal, 226.

89. Ronald W. Reagan, Ronald Reagan: An American Life (New York: Simon & Schuster, 1990), 69.

90. John Kenneth Galbraith, The Economic Effects of the Federal Public Works Expenditures 1933–1938 (New York: Da Capo Press, 1975 [originally published in 1940]), 109.

91. E. Cary Brown, “Fiscal Policy in the ’Thirties: A Reappraisal,” American Economic Review 46, no. 5 (December 1956): 867.

92. Ibid., 868–69.

93. Ibid., 866.

94. Robert Emmet Sherwood, Roosevelt and Hopkins: An Intimate History (New York: Bantam Books, 1950), 1:90.

95. John Easton, in “You’re Gonna Have Lace Curtains,” in WPA Federal Writers Project, These Are Our Lives (New York: W. W. Norton, 1975), 15–16; quoted in Bruce J. Schulman, From Cotton Belt to Sunbelt: Federal Policy, Economic Development, and the Transformation of the South, 1938–1980 (Durham, NC: Duke University Press, 1994), 35.

96. Quoted in Edsforth, The New Deal, 216.

97. Schlesinger, The Age of Roosevelt, vol. 3, The Politics of Upheaval, 424.

98. Lyndon B. Johnson, “Remarks at the Municipal Park, South Gate, California, October 11, 1964,” Public Papers of the Presidents (Washington, DC: United States Government Printing Office, 1966), 1963–1964, 2:1296; quoted in William E. Leuchtenberg, In the Shadow of FDR: From Harry Truman to George W. Bush (Ithaca, NY: Cornell University Press, 1983).

CHAPTER 12: ARSENAL OF DEMOCRACY

1. Quoted in Francis Walton, Miracle of World War II: How American Industry Made Victory Possible (New York: Macmillan, 1956), 42.

2. Quoted in Look Magazine Editors, Oil for Victory: The Story of Petroleum in War and Peace (New York: McGraw-Hill, 1946), 15.

3. Quoted in William E. Leuchtenberg, Franklin D. Roosevelt and the New Deal: 1932–1940 (New York: Harper & Row, 1963), 74.

4. Franklin Delano Roosevelt, “Arsenal of Democracy” (speech, Washington, DC, December 29, 1940, http://teachingamericanhistory.org/library/index.asp?documentprint=657 (accessed November 15, 2011).

5. Harold G. Vatter, The U.S. Economy in World War II (New York: Columbia University Press, 1985), 3. See also Gerald T. White, Billions for Defense: Government Financing by the Defense Plant Corporation During World War II (University, AL: University of Alabama Press, 1980).

6. Wyatt Wells, Antitrust and the Formation of the Postwar World (New York: Columbia University Press, 2002), 70.

7. Vatter, The U.S. Economy in World War II, 14.

8. Jerome G. Poppers, History of United States Military Logistics, 1935–1985 (Huntsville, AL: Logistics Education Foundation, 1988), 6.

9. J. M. Scammell, “History of the Industrial College of the Armed Forces 1924–1946” (unpublished manuscript, National Defense University Library, 1946), 5; quoted in Alan L. Gropman, Mobilizing U.S. Industry in World War II: Myth and Reality (Honolulu, HI: University Press of the Pacific, 2005), 12.

10. Donald M. Nelson, Arsenal of Democracy (New York: Harcourt, Brace, 1946), 87–88.

11. David M. Kennedy, Freedom from Fear: The American People in World War II (New York: Oxford University Press, 1999), 229.

12. Jim Lacey, Keep from All Thoughtful Men: How U.S. Economists Won World War II (Annapolis, MD: Naval Institute Press, 2011).

13. Vatter, The U.S. Economy in World War II, 29.

14. Wells, Antitrust and the Formation of the Postwar World, 74.

15. Vatter, The U.S. Economy in World War II, 147.

16. David Mowery and Nathan Rosenberg, “Twentieth-Century Technological Change,” in The Cambridge Economic History of the United States, ed. Stanley L. Engerman and Robert E. Gallman, vol. 3, The Twentieth Century (Cambridge, UK: Cambridge University Press, 2000), 861.

17. Walton, Miracle of World War II, 340.

18. Daniel Yergin, The Quest: Energy, Security, and the Remaking of the Modern World (New York: Penguin Press, 2011), 229.

19. Fred M. Shelley et al., Political Geography of the United States (New York: Guilford Press, 1996), 88, 258.

20. Bruce J. Schulman, From Cotton Belt to Sunbelt: Federal Policy, Economic Development, and the Transformation of the South, 1938–1980 (Durham, NC: Duke University Press, 1994), 63.

21. GlobalSecurity.org, “Michoud Assembly Facility,” www.globalsecurity .org/facility/michoud.htm (accessed December 12, 2011).

22. Gropman, Mobilizing U.S. Industry in World War II, 3 and 28, note 12.

23. Steven R. Waddell, United States Army Logistics: From the American Revolution to 9/11 (Santa Barbara, CA: ABC-CLIO, 2010), 129.

24. Vatter, The U.S. Economy in World War II, 17.

25. Ibid., 114.

26. Ibid., 120.

27. Ibid., 122.

28. Ibid., 124.

29. Redd Evans and John Jacob Loeb, “Rosie the Riveter” (1942): Paramount Music Corporation, NY.

30. “Women in Transportation: Changing America’s History,” United States Department of Transportation Web site, http://www.fhwa.dot.gov/wit/rosie.htm (accessed December 8, 2011).

31. Maureen Honey, Creating Rosie the Riveter: Class, Gender, and Propaganda During World War II (Amherst: University of Massachusetts Press, 1984), 21.

32. Walton, Miracle of World War II, 380.

33. Vatter, The U.S. Economy in World War II, 20.

34. Quoted in Richard Polenberg, War and Society: The United States, 1941–1945 (Philadelphia: J. B. Lippincott, 1972), 124.

35. Lyn Crost, Honor by Fire: Japanese Americans at War in Europe and the Pacific (Novato, CA: Presidio Press, 1994), xiii.

36. Vatter, The U.S. Economy in World War II, 106.

37. Walton, Miracle of World War II, 540–41.

38. Mark Harrison, “The Economics of World War II: An Overview,” in The Economics of World War II: Six Great Powers in International Competition, ed. Mark Harrison (Cambridge, UK: Cambridge University Press, 1998), 10.

39. Louis Galambos and Joseph Pratt, The Rise of the Corporate Commonwealth: U.S. Business and Public Policy in the Twentieth Century (New York: Basic Books, 1988), 157.

40. Gropman, Mobilizing U.S. Industry in World War II, 2.

41. Ibid.

42. Tables 185–86, in Wladimir S. Woytinsky and Emma Shadkhan Woytinsky, World Population and Production: Trends and Outlook (New York: Twentieth Century Fund, 1953); cited in Giovanni Arrighi, The Long Twentieth Century (New York: Verso, 1994), 275.

43. Waddell, United States Army Logistics, 129.

44. Gropman, Mobilizing U.S. Industry in World War II, 53n38.

45. Waddell, United States Army Logistics, 129.

46. Ibid.

47. Michael Lind, The American Way of Strategy (New York: Oxford University Press, 2006), 225.

48. Alan Milward, War, Economy, and Society: 1939–1945 (Los Angeles: University of California Press, 1979), 75.

49. Quoted in “The Power Years: World War II and Texas Oil,” Hazardous Business: Industry, Regulation, and the Railroad Commission (online exhibit; Austin: Texas State Library and Archives Commission), 2.

CHAPTER 13: THE GLORIOUS THIRTY YEARS

1. Adolf A. Berle, The American Economic Republic (New York: Harcourt, Brace & World, 1965 [originally published in 1963]), 91.

2. John Kenneth Galbraith, The Affluent Society, 40th anniversary edition, updated and with a new introduction by the author (New York: Houghton Mifflin, 1998).

3. Michael Lind, The American Way of Strategy (New York: Oxford University Press, 2006), 225.

4. Wyatt Wells, Antitrust and the Formation of the Postwar World (New York: Columbia University Press, 2002), 188–89.

5. Daniel Yergin, The Quest: Energy, Security, and the Remaking of the Modern World (New York: Penguin, 2011), 281–82. See also Daniel Yergin, The Prize: The Epic Quest for Oil, Money, and Power (New York: Free Press, 1991).

6. Wyatt Wells, Antitrust and the Formation of the Postwar World (New York: Columbia University Press, 2002), 193–94.

7. Ibid., 253n14.

8. Ibid., 196.

9. Vaclav Smil, Oil: A Beginner’s Guide (Oxford: Oneworld Publications, 2008), 26.

10. Wells, Antitrust and the Formation of the Postwar World, 198–99.

11. Forrest McDonald, Insull: The Rise and Fall of a Billionaire Utility Tycoon (Washington, DC: Beard Books, 2004).

12. Twentieth Century Fund Power Committee, Electric Power and Government Policy: A Summary of Relations Between the Government and Electric Power Industry (New York: Twentieth Century Fund, 1948); Ronald C. Tobey, Technology as Freedom: The New Deal and the Electrical Modernization of the American Home (Berkeley: University of California Press, 1996).

13. Steven Solomon, Water: The Epic Struggle for Wealth, Power, and Civilization (New York: HarperCollins, 2010), 343.

14. Ibid., 343.

15. Ibid., 338 and 340.

16. Alexander J. Field, “The Origins of U.S. Total Factor Productivity Growth in the Golden Age,” Cliometrica 1 (April 2007): 74n2.

17. Alan Lawson, A Commonwealth of Hope: The New Deal Response to Crisis (Baltimore: Johns Hopkins University Press, 2006), 102.

18. Quoted in David Lanier Lewis, The Public Image of Henry Ford: An American Folk Hero and His Company (Detroit, MI: Wayne State University Press, 1976), 163.

19. John P. Ferris, “Statement of the Present Attitude of TVA Concerning Industrial Development,” memorandum to H. A. Morgan, September 5, 1933, Records of the Tennessee Valley Authority, RG 142, TVA Board File Curtis-Morgan-Morgan, FARC; quoted in Bruce J. Schulman, From Cotton Belt to Sunbelt: Federal Policy, Economic Development, and the Transformation of the South, 1938–1980 (Durham, NC: Duke University Press, 1994), 35.

20. Lawson, A Commonwealth of Hope, 122–23.

21. Ray Kroc, Grinding It Out: The Making of McDonald’s (Chicago: Contemporary Books, 1977), 10.

22. Martha Bianco, Scott L. Bottles, Los Angeles, and the Automobile: The Making of the Modern City (Berkeley: University of California Press, 1987).

23. Ibid., 18.

24. Wendell Cox, “Transit: The 4 Percent Solution,” New Geography.com, May 26, 2011.

25. Quoted in Schulman, From Cotton Belt to Sunbelt, 220.

26. Quoted in ibid., 63.

27. Charles S. Aiken, The Cotton Plantation South Since the Civil War (Baltimore: Johns Hopkins University Press, 1998), 228.

28. Raymond A. Mohl, ed., The Making of Urban America (Wilmington, DE: Scholarly Resources, 1997), “Part Two: The Industrial City: Introduction,” 221.

29. Table 2.5, “Income Per Worker as a Percentage of U.S. Average, by Sector, 1869–1955,” in Peter George, The Emergence of Industrial America: Strategic Factors in American Economic Growth Since 1870 (Albany: State University of New York Press, 1982), 18.

30. Table 2.6, “Per Capita Personal Income as a Percentage of U.S. Average, by Region, 1860–1960,” in ibid., 191.

31. Stanley Lebergott, Pursuing Happiness: American Consumers in the Twentieth Century (Princeton, NJ: Princeton University Press, 1993), 101.

32. Table 8.1, “Housework, 1900–1975, by Weekly Hours,” in ibid., 51.

33. Ibid., 58.

34. Ibid., 106–107.

35. Ibid., 109.

36. Ibid., 98.

37. Ibid., 67.

38. Robert Reich, Supercapitalism: The Transformation of Business, Democracy, and Everyday Life (New York: Alfred A. Knopf, 2007), 24.

39. Alfred D. Chandler, The Visible Hand: The Managerial Revolution in American Business (Cambridge, MA, and London: Harvard University Press, 1977), 482–83.

40. John Kenneth Galbraith, The New Industrial State, 4th ed. (Princeton, NJ: Princeton University Press, 2007), 93.

41. Ibid., 93.

42. Berle, The American Economic Republic.

43. Hugh Rockoff, “The United States: From Ploughshares to Swords,” in The Economics of World War II: Six Great Powers in International Competition, ed. Mark Harrison (Cambridge, UK: Cambridge University Press, 1998), 104–105; Robert J. Gordon, “45 Billion of U.S. Private Investment Has Been Mislaid,” American Economic Review 59, no. 3 (June 1969): 221–38.

44. Gerald T. White, “Financing Industrial Expansion for War: The Origin of the Defense Plan Corporation Leases,” Journal of Economic History 9, no. 2 (November 1949): 156–83.

45. M. Morton, “History of Synthetic Rubber,” in History of Polymer Science and Technology, ed. Raymond B. Seymour (New York: Marcel Dekker, 1982), 231, 235; David Mowery and Nathan Rosenberg, “Twentieth-Century Technological Change,” in The Cambridge Economic History of the United States, ed. Stanley L. Engermann and Robert E. Gallman, vol. 3, The Twentieth Century (Cambridge, UK: Cambridge University Press, 2000), 857.

46. Galbraith, The New Industrial State, 103.

47. “Research and Development in Industry, 1974,” National Science Foundation, September 1976; cited in Galbraith, The New Industrial State, 38–39n10.

48. William H. Becker, “Managerial Capitalism and Public Policy,” Business and Economic History, 2nd ser., 21 (1992): 251.

49. Joint Economic Committee, US 87th Congress, 1st Session (1962), 40–41; quoted in Carlota Perez, Technological Revolutions and Financial Capital: The Dynamics of Bubbles and Golden Ages (Northampton, MA: Edward Elgar, 2002), 128.

50. Galbraith, The New Industrial State, 118.

51. Berle, The American Economic Republic, 75.

52. Galbraith, The New Industrial State.

53. John Berleau, “What’s Good for GM Is Now Terrible for America,” The American Spectator Online, http://spectator.org/archives/2010/11/18/whats-good-for-gm-is-now-terri (accessed December 8, 2011).

54. Quoted in Fortune, October 1951, 98–99; Reich, Supercapitalism, 45.

55. Quoted in Richard B. Freedman and James L. Medoff, What Do Unions Do? (New York: Basic Books, 1984), 4; Greg Hannsgen and Dimitri B. Papadimitriou, “Lessons from the New Deal: Did the New Deal Prolong or Worsen the Great Depression?” (working paper no. 581, The Levy Economics Institute of Bard College, October 2009), 11.

56. William Benton, speech to CED trustees, 1949, box 1518, OF 638-A, Truman MSS; quoted in Robert M. Collins, “American Corporatism: The Committee for Economic Development, 1942–1964,” The Historian 44, no. 2 (February 1982): 171.

57. John Chamberlain, The American Stakes (New York: Carrick and Evans, 1940), 31–32; quoted in Daniel T. Rodgers, Contested Truths: Keywords in American Politics Since Independence (New York: Basic Books, 1987), 208.

58. Roger Lowenstein, “Siphoning GM’s Future,” New York Times, July 10, 2008.

59. R. Alton Gilbert, “Requiem for Regulation Q: What It Did and Why It Passed Away,” Federal Reserve Bank of St. Louis Review, February 1986: 22–37.

60. Michael R. Haines and Richard H. Steckel, A Population History of North America (Cambridge, UK: Cambridge University Press, 2000), 643.

61. Table 14.5, “Occupational Distribution of Whites and Blacks, 1950 (Percentages),” in Ibid.

62. Ibid., 645.

63. Ibid., 644.

64. Ibid., 648.

65. Ibid., 649.

66. Ibid., 642.

67. Table 14.1, “Race-Nativity Distribution of U.S. Population, 1900 and 1950 (Percentages)” in ibid., 633.

68. Paul A. Samuelson, Economics, sixth edition (New York: McGraw-Hill, 1964), quoted in George J. Borjas, “The Labor Demand Curve Is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market” (Cambridge, MA: National Bureau of Economic Research), working paper 9755, 2.

69. See Vernon M. Briggs, Immigration and American Unionism, Cornell Studies in Industrial and Labor Relations (Ithaca, NY: Cornell University Press, 2001).

70. Haines and Steckel, A Population History of North America, 633.

71. California Rural Legal Assistance, “Major Victories: Highlights from CRLA’s Proud History of Landmark Victories for the Poor,” www.crla .org/major-victories (accessed December 13, 2011).

72. Quoted in American Immigration, vol. 6, Home Sweatshops–Italians (Danbury, CT: Grolier Educational, 1999), 41.

73. Quoted in Brian D. Behnken, Fighting Their Own Battles: Mexican Americans, African Americans, and the Struggle for Civil Rights in Texas (Chapel Hill: University of North Carolina Press, 2011), 105.

74. Quoted in Susan Ferriss and Ricardo Sandoval, The Fight in the Fields: Cesar Chavez and the Farmworkers Movement (New York: Harcourt Brace, 1997), 56.

75. Quoted in Richard Jay Jensen and and John C. Hammerback, eds., The Words of Cesar Chavez (College Station: Texas A&M University Press, 2002), 47.

76. Census.

77. Robert J. Samuelson, “Importing Poverty,” Washington Post, September 5, 2007.

78. Martin Anderson quoted in Mike Feinsilber, “The Transition: Reagan Aide Claims Poverty in America Is Virtually Extinct,” Associated Press, December 26, 1980.

79. Gareth Davies, From Opportunity to Entitlement: The Transformation and Decline of Great Society Liberalism (Lawrence: University Press of Kansas, 1996), 34.

80. Dwight D. Eisenhower, letter to Edgar Newton Eisenhower, November 8, 1954, in Eisenhower, The Papers of Dwight D. Eisenhower (Baltimore: Johns Hopkins University Press, 1996), Document 1147. World Wide Web facsimile by the Dwight D. Eisenhower Memorial Commission of the print edition http://www.eisenhowermemorial.org/presidential -papers/first-term/documents/1147.cfm (accessed December 8, 2011).

81. Jonathan Hughes and Louis P. Cain, American Economic History, 5th ed. (New York: Addison-Wesley, 1998), 437.

82. Marc Allen Eisner, From Warfare State to Welfare State: World War I, Compensatory State Building, and the Limits of the Modern Order (University Park: Pennsylvania State University Press, 2000).

CHAPTER 14: THE GREAT DISMANTLING

1. Ronald Reagan, First Inaugural Address (speech, Washington, DC, January 20, 1981), http://www.bartleby.com/124/pres61.html (accessed November 14, 2011).

2. Suzanne McGee, Chasing Goldman Sachs: How the Masters of the Universe Melted Wall Street Down . . . and Why They’ll Take Us to the Brink Again (New York: Crown Business, 2010), 257.

3. D. Ravenscraft and F. M. Scherer, Mergers, Sell-Offs, and Economic Efficiency (Washington, DC: Brookings Institution, 1987), 39; cited in William Lazonick and Mary O’Sullivan, “Finance and Industrial Development, part I: The United States and the United Kingdom,” Financial History Review 4 (1997): 17.

4. W. R. Grace Web site, http://www.grace.com/Products/ (accessed December 8, 2011).

5. Lazonick and O’Sullivan, “Finance and Industrial Development,” 17.

6. US Bureau of the Census, Historical Statistics of the United States: Colonial Times to 1957 (Washington, DC: US Government Printing Office, 1969), 928; Lazonick and O’Sullivan, “Finance and Industrial Development,” 17.

7. Alfred E. Eckes Jr., Opening America’s Market (Chapel Hill: University of North Carolina Press, 1995), 154.

8. Ibid., 157.

9. Ibid., 158.

10. Unpublished pages from memoirs of Harry S. Truman, quoted in ibid., 158 and 324n69.

11. Memo to American diplomatic and counselor offices, “Promotion of United States Import Trade,” September 11, 1946, ITF, RG43, US National Archives; cited in Eckes, Opening America’s Market, 165 and 326n96.

12. US Public Advisory Board for Mutual Security, “A Trade and Tariff Policy in the National Interest” (the Bell Report), 1, 3, 66, quoted in Eckes, Opening America’s Market, 166, and 326n101.

13. Eckes, Opening America’s Market, 328n135; discussion of 409 meeting of the National Security Council, June 4, 1959, vol. 16 (1990), document 971, DDC.

14. Eckes, Opening America’s Market, 179.

15. Eckes, Opening America’s Market, 186 and 330n28; Public Papers . . . Kennedy, 1961, 790–91.

16. “Task Force on Foreign Economic Policy,” March 25, 1964, quoted in Eckes, Opening America’s Market, 191–92 and 331n51.

17. “Clarence Randall Diary,” Randall Papers, June 25, July 7, 15, 1954, DDE; quoted in Eckes, Opening America’s Market, 168 and 326n106.

18. Walter Adams and James W. Brock, The Bigness Complex: Industry, Labor, and Government in the American Economy (New York: Pantheon, 1986), 384n27.

19. A. G. Kenwood and A. L. Lougheed, The Growth of the International Economy, 1820–1980 (London: Allen & Unwin, 1983), 306.

20. Ibid.

21. K. Otabe, quoted in minutes of Japanese–United States negotiations, February 22–April 18, 1955, ITF, RG43, National Archives; cited in Eckes, Opening America’s Market, 171 and 327n119.

22. Eckes, Opening America’s Market, 173–74.

23. Ibid., 169.

24. Komiya, Okuno, Suzumura, Japanese Industrial Policy (1984/985); see also Chalmers Johnson (1984).

25. Yoko Sazanami, Shujiro Urata, and Hiroki Kawai, Measuring the Costs of Protection in Japan (Washington, DC: Institute for International Economics, 1995).

26. Vernon W. Ruttan, Technology, Growth, and Development: An Induced Innovation Perspective (New York: Oxford University Press, 2001), 344–45; M. Anchordoguy, Computers Inc.: Japan’s Challenge to IBM (Cambridge, MA: Harvard University Press, 1989), 20.

27. Herman Schwartz, “Hegemony, International Debt and International Economic Instability,” in Chronis Polychroniou, ed., Perspectives and Issues in International Political Economy (New York: Praeger, 1992).

28. Ibid.

29. Quoted in R. Taggart Murphy, The Weight of the Yen: How Denial Imperils America’s Fate and Ruins an Alliance (New York: W. W. Norton, 1996), 201.

30. Box 8.1, “Transfer of Petrochemical Technology to Korea,” in Ruttan, Technology, Growth, and Development, 305–307. See also J. L. Enos and W. H. Park, The Adoption and Diffusion of Imported Technology: The Case of Korea (London: Croom Helm, 1988); J. J. Stern, J. Kim, D. H. Perkins, and J.-H. Yoo, Industrialization and the State: The Korean Heavy and Chemical Industry Drive (Cambridge, MA: Harvard University Press, 1995).

31. Ha-Joon Chang, Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism (New York: Bloomsbury Press, 2008).

32. John F. Kennedy, “Inaugural Address” (speech, Washington, DC, January 20, 1961), http://www.bartleby.com/124/pres56.html (accessed November 2, 2011).

33. Richard Reeves, President Nixon: Alone in the White House (New York: Simon & Schuster, 2001), 341.

34. Leonard Silk and David Vogel, Ethics and Profits: The Crisis of Confidence in American Business (New York: Simon & Schuster, 1976), 21.

35. Ibid., 59.

36. Ibid., 57.

37. Ibid., 189.

38. Quoted in ibid., 72–73.

39. Ruttan, Technology, Growth, and Development, 330.

40. Ronald Reagan, “First Inaugural Address” (speech, Washington, DC, January 20, 1981), http://www.freerepublic.com/focus/news/2178758/posts (accessed November 2, 2011).

41. “January 1965 Economic Report of the President,” Joint Economic Committee, 89th Cong., 1st sess. (Washington, DC: US Government Printing Office, 1965), 13.

42. Stephen Wallace Taylor, “Technocracy on the March? The Tennessee Valley Authority and the Uses of Technology,” in Technology, Innovation, and Southern Industrialization: From the Antebellum Era to the Computer Age, ed. Susanna Delfino and Michele Gillespie (Columbia and London: University of Missouri Press, 2008), 177–78.

43. Robert M. Collins, More: The Politics of Growth in Postwar America (Oxford: Oxford University Press, 2000), 173.

44. Allan H. Meltzer, A History of the Federal Reserve, vol. 2, bk. 2, 1970–1986 (Chicago: University of Chicago Press, 2010), 925.

45. US Bureau of the Census (1980), table 679.

46. Peter Temin, Free Land and Federalism: American Economic Exceptionalism (Cambridge, MA: MIT Press, 1988), 386; Peter Temin, The Fall of the Bell System: A Study in Prices and Politics (New York: Cambridge University Press, 1987).

47. Steven A. Morrison and Clifford Winston, “The Remaining Role for Government Policy in the Deregulated Airline Industry,” in Deregulation of Network Industries: What’s Next?, ed. Sam Peltzman and Clifford Winston (Washington, DC: Brookings Institution, 2000), 9.

48. Jose A. Gomez Ibanez, Regulating Infrastructure: Monopoly, Contracts and Discretion (Cambridge, MA: Harvard University Press, 2003), 206–207.

49. US General Accounting Office, “Airline Competition: High Fares and Reduced Competition at Concentrated Airports,” report GAO/RCED 90–102, July 1990.

50. Paul Stephen Dempsey, “The Experience of Deregulation: Erosion of the Common Carrier System,” Transportation Law Institute 13 (1981): 121, 172–75; Paul Stephen Dempsey, Airline Deregulation and Laissez-Faire Mythology (Westport, CT: Quorum Books, 1992), 8–9n11.

51. “The California Crisis: California Timeline,” PBS Frontline Web site, http://www.pbs.org/wgbh/pages/frontline/shows/blackout/california/timeline.html (accessed December 8, 2011).

52. S. David Freeman testimony, in “Examining Enron: Developments Regarding Electricity Price Manipulation in California,” Hearing Before the Subcommittee on Consumer Affairs, Foreign Commerce, and Tourism of the Committee on Commerce, Science, and Transportation, United States Senate, One Hundred Seventh Congress, Second Session, May 15, 2002 (Washington, DC: US Government Printing Office, 2004).

53. Michael French, U.S. Economic History Since 1945 (New York: Manchester University Press, 1997), 138.

54. Gerald F. Davis, Managed by the Markets: How Finance Reshaped America (New York: Oxford University Press, 2009), 114.

55. Ibid., 119.

56. Michal Kalecki, “Political Aspects of Full Employment,” Political Science Quarterly 14 (1943), in Michal Kalecki, Selected Essays on the Dynamics of the Capitalist Economy (Cambridge, UK: Cambridge University Press, 1971).

57. Quoted in Nick Cohen, “Gambling with Our Future,” New Statesman, January 13, 2003; Robert Wade, “The Economy Has Not Solved Its Problems,” Challenge (March/April 2011): 34.

58. E. Ray Canterberry, Wall Street Capitalism: The Theory of the Bondholding Class (Singapore: World Scientific Publishing, 2000), 89.

59. Quoted in William Greider, Secrets of the Temple: How the Federal Reserve Runs the Country (New York: Simon & Schuster, 1987), 648.

60. Murphy, The Weight of the Yen, 192.

61. David Hale, “The Japanese Ministry of Finance and Dollar Diplomacy During the Late 1980’s or How the University of Tokyo Law School Saved America from the University of Chicago Economics Department” (unpublished paper, Kemper Financial Services, Chicago, July 1989), 1; quoted in Murphy, The Weight of the Yen, 219.

62. Bruce Bartlett, “Supply-Side Economics: Voodoo Economics or Lasting Contribution?” Laeffer Associates Supply Side Investment Research, November 11, 2003, http://web2.uconn.edu/cunningham/econ309/lafferpdf .pdf (accessed November 2, 2011).

63. “Rosen Distorted Defense Spending During Carter Presidency,” Colorado Media Matters, January 23, 2007, http://colorado.mediamatters.org/items/200701240002 (accessed November 2, 2011).

CHAPTER 15: AS WE MAY THINK: THE THIRD INDUSTRIAL REVOLUTION

1. Vannevar Bush, Science: The Endless Frontier (Washington, DC: National Science Foundation, 1960 [originally published in 1945]), 10.

2. The Book of the Record of the Time Capsule (New York: Westinghouse Electric & Manufacturing Company, 1938); Official Guide, New York World’s Fair 1964/1965 (New York: Time-Life Books, 1964); “1939 Westinghouse Time Capsule Complete List Contents,” New York Times, “Looking Forward, Looking Back,” www.nytimes.com/ specials/magazine3/items.html (accessed December 12, 2011).

3. Quoted in Charles Thorpe, Oppenheimer: The Tragic Intellect (Chicago: University of Chicago Press, 2006), 161.

4. Vannevar Bush, “As We May Think,” Atlantic, July 1945.

5. James M. Nyce and Paul Kahn, From Memex to Hypertext: Vannevar Bush and the Mind’s Machine (New York: Harcourt Brace Jovanovich, 1991), 261.

6. Quoted in G. Pascal Zachary, Endless Frontier: Vannevar Bush, Engineer of the American Century (New York: Free Press, 1997), 356.

7. Vannevar Bush, Pieces of the Action (New York: Morrow, 1970), 31–32.

8. Franklin Delano Roosevelt, Whither Bound? (Boston and New York: Houghton Mifflin, 1926).

9. Zachary, Endless Frontier, 218.

10. Vannevar Bush, Science, the Endless Frontier: A Report to the President by Vannevar Bush, Director of the Office of Scientific Research and Development, July 1945 (Washington, DC: US Government Printing Office, 1945).

11. Zachary, Endless Frontier, 201.

12. Edward W. Constant II, The Origins of the Turbojet Revolution (Baltimore: Johns Hopkins University Press, 1980), 188.

13. Ibid., 207.

14. Richard A. Leyes II and William A. Fleming, The History of North American Small Gas Turbine Aircraft Engines (Washington, DC: Smithsonian Institution, 1999), 236–37.

15. John E. Steiner, “Jet Aviation Development: A Company Perspective,” in The Jet Age: Forty Years of Jet Aviation, ed. Walter J. Boyne and Donald S. Lopez (Washington, DC: National Air and Space Museum/Smithsonian, 1979), 142; Peter J. Hugill, Global Communications Since 1844 (Baltimore: Johns Hopkins University Press, 1999), 290.

16. Vaclav Smil, Oil: A Beginner’s Guide (Oxford: Oneworld Publications, 2008), 12.

17. Gerard J. DeGroot, Dark Side of the Moon: The Magnificent Madness of the American Lunar Quest (New York: New York University Press, 2006), 34.

18. Scientific American, June 1960.

19. Hugill, Global Communications Since 1844, 233.

20. Larry Owen, “Vannevar Bush and the Differential Analyzer: The Text and Context of an Early Computer,” in Nyce and Kahn, From Memex to Hypertext, 3–5.

21. Ibid.

22. Vernon W. Ruttan, Technology, Growth, and Development: An Induced Innovation Perspective (New York: Oxford University Press, 2001), 316–17.

23. Ibid., 320.

24. Richard S. Tedlow, The Watson Dynasty: The Fiery Reign and Troubled Legacy of IBM’s Founding Father and Son (New York: HarperBusiness, 2003), 103.

25. “World’s Most Admired Companies,” CNN Money, 2011.

26. “THINK: The Story of IBM,” Atari Archives, http://www.atariarchives .org/deli/think.php (accessed November 2, 2011).

27. Martin Campbell-Kelly and William Aspray, Computer: A History of the Information Machine (New York: Basic Books, 1996), 127.

28. J. Carlton Gallawa, The Complete Microwave Oven Service Handbook (New York: Prentice-Hall, 2007).

29. Aron Clark, “The First PC,” Wired, December 2000.

30. Richard N. Langlois, “External Economies and Economic Progress: The Case of the Microcomputer Industry,” Business History Review 66 (1992), 14.

31. Daniel Yergin, The Quest: Energy, Security, and the Remaking of the Modern World (New York: Penguin, 2011), 553–54.

32. Nyce and Kahn, From Memex to Hypertext, 235.

33. Dylan Tweney, “Dec. 9, 1968: The Mother of All Demos,” Wired.com, http://www.wired.com/science/discoveries/news/2008/12/dayintech_1209 (accessed November 2, 2011).

34. Theodore H. Nelson, “As We Will Think,” in Nyce and Kahn, From Memex to Hypertext.

35. J. C. R. Licklider, Libraries of the Future (Cambridge, MA: MIT Press, 1965), xii.

CHAPTER 16: THE BUBBLE ECONOMY

1. James Foreman-Peck, A History of the World Economy: International Economic Relations Since 1850 (Totowa, NJ: Barnes & Noble Books, 1983), 383.

2. Peter J. Hugill, World Trade Since 1431 (Baltimore: Johns Hopkins University Press, 1993), 283.

3. Vaclav Smil, Two Prime Movers of Globalization (Cambridge, MA: MIT Press, 2000), 392.

4. Ibid., 382–83.

5. Ibid., 382.

6. Ibid., 389.

7. Ibid., 390.

8. Nelson Lichtenstein, “Wal-Mart: A Template for Twenty-first Century Capitalism,” in Nelson Lichtenstein, ed., Wal-Mart: The Face of Twenty-First Century Capitalism (New York: New Press, 2005).

9. Smil, Two Prime Movers of Globalization, 391.

10. Thomas I. Palley, “The Rise and Fall of Export-Led Growth,” working paper no. 6575 (Annandale-on-Hudson: Levy Institute of Bard College, July 2011).

11. Table 1, “Globalization Waves in the 19th and 20th Century,” in World Trade Report 2008: Trade in a Globalizing World (Geneva, Switzerland: World Trade Organization, 2008), 15.

12. Peter Nolan and Jin Zhang, “Global Competition After the Financial Crisis,” New Left Review 64 (July–August 2010): 99.

13. Vaclav Smil, Global Catastrophes and Trends: The Next 50 Years (Cambridge, MA: MIT Press, 2008), 164.

14. Nolan and Zhang, “Global Competition After the Financial Crisis,” 102.

15. Michael Dooley, David Folkerts-Landau, and Peter Garber, International Financial Stability: Asia, Interest Rates, and the Dollar (New York: Deutsche Bank AG, 2005); Richard N. Cooper, “Living with Global Imbalances,” Brookings Papers on Economic Activity 2 (2007): 91–107.

16. Smil, Two Prime Movers of Globalization, 389.

17. David O. Beim, “The Future of Chinese Growth,” January 24, 2011, 4, http://ssrn.com/abstract=1635400 (accessed October 6, 2011).

18. Philip Lagerkranser, “China Banks Surge to World’s Biggest May Be Too Good to Be True,” Bloomberg.com, April 29, 2009.

19. Doug Palmer, “U.S. Raises Concerns About China’s State-Owned Firms,” Reuters, May 3, 2011, http://www.bloomberg.com/apps/news?pid =newsarchive&sid=aYQg0d5NANkM (accessed November 14, 2011).

20. Janet Ong, “China Tells Telecom Companies to Merge in Overhaul (Update 1),” Bloomberg.com, May 25, 2008.

21. Maurice Obstfeld and Kenneth Rogoff, “Global Imbalances and the Financial Crisis: Products of Common Causes,” Paper Prepared for the Federal Reserve Bank of San Francisco Asia Economic Policy Conference, Santa Barbara, CA, October 18–20 (November 2009): 18–19.

22. Ibid., 5.

23. Stephen S. Cohen and J. Bradford DeLong, The End of Influence (New York: Basic Books, 2010), 93.

24. Alan Tonelson, “Obama’s Trade Fantasyland: Lack of Exports to Mercantilist East Asia Is America’s Fault,” AmericanEconomicAlert.org, November 26, 2009, http://www.americaneconomicalert.org/view_art .asp?Prod_ID=3354 (accessed October 6, 2011).

25. Eric Janszen, The Post-Catastrophe Economy: Rebuilding America and Avoiding the Next Bubble (New York: Penguin, 2010), 35.

26. Andrew Glyn, Capitalism Unleashed: Finance Globalization and Welfare (Oxford: Oxford University Press, 2006), 83.

27. Cohen and DeLong, The End of Influence, 110.

28. “Manufacturing share of employment (1970–2009,” http://stats.oecd.org/index.aspx (accessed January 6, 2012).

29. Robert Wade, “The Economy Has Not Solved Its Problems,” Challenge 54, no. 2 (March–April 2011): 17.

30. Simon Johnson and James Kwak, 13 Bankers: The Wall Street Takeover and the Next Financial Meltdown (New York: Pantheon, 2010), 12.

31. Gerald Frederick Davis, Managed by the Markets: How Finance Reshaped America (New York: Oxford University Press, 2009), 105–106.

32. Johnson and Kwak, 13 Bankers, 85.

33. Yves Smith, ECONned (New York: Palgrave, 2010), 140.

34. John Arlidge, “I’m Doing ‘God’s Work,’ Meet Mr. Goldman Sachs,” London Sunday Times, November 8, 2009.

35. Amar Bhide, A Call for Judgment: Sensible Finance for a Dynamic Economy (New York: Oxford University Press, 2010), 286–87.

36. Alan Greenspan, “Government Regulation and Derivative Contracts” (speech, Financial Markets Conference of the Federal Reserve Bank of Atlanta, Coral Gables, FL, February 21, 1997).

37. Gordon Fairclough, “As Barriers Fall in Auto Business, China Jumps In,” Wall Street Journal, November 7, 2006; cited in Gerald F. Davis, Managed by the Markets: How Finance Reshaped America (New York: Oxford University Press, 2009), 200.

38. Table 3.1, “Ten Largest US-Based Corporate Employers, 1960–2007,” in Davis, Managed by the Markets, 89.

39. US Congress, Economic Report of the President, 1996 (Washington, DC: US Government Printing Office, 1996), 343 and 360; cited in William Lazonick and Mary O’Sullivan, “Finance and Industrial Development, Part I: The United States and the United Kingdom,” Financial History Review 4 (1997): 20.

40. William Lazonick, Sustainable Prosperity in the New Economy? (Kalamazoo, MI: W. E. Upjohn Institute for Employment Research, 2009), 12.

41. Ibid.

42. Gerald F. Davis, “A New Finance Capitalism? Mutual Funds and Ownership Re-concentration in the United States,” European Management Review 5, no. 1 (Spring 2008): 17.

43. Davis, Managed by the Markets, 213.

44. Matteo Tonnello, Revisiting Stock Market Short Termism (New York: Conference Board, 2006), 3, citing John R. Graham, R. Harvey Campbell, and Rajgopal Shivaram, “The Economic Implications of Corporate Financial Reporting,” Journal of Accounting and Economics 4 (December 2005): 3–73; cited in Lawrence E. Mitchell, The Speculation Economy: How Finance Triumphed over Industry (San Francisco: Berrett-Koehler, 2008), 278.

45. Mitchell, The Speculation Economy, 277.

46. Ibid.

47. Quoted in Mark Maremont and Charles Forelle, “Bosses’ Pay: How Stock Options Became Part of the Problem,” Wall Street Journal, December 27, 2006.

48. Davis, Managed by the Markets, 243.

49. Stephen S. Cohen and J. Bradford DeLong, The End of Influence: What Happens When Other Countries Have the Money? (New York: Basic Books, 2010), 112; Thomas Philippon and Ariell Reshef, “Wages and Human Capital in the U.S. Financial Industry: 1909–2006” (Cambridge, MA: The National Bureau of Economic Research, 2009), working paper no. 14644.

50. Figure 4-1, “Real Average Annual Compensation, Banking vs. Private Sector Overall,” in Johnson and Kwak, 13 Bankers, 115.

51. Greg Ip, “Income-Inequality Gap Widens,” Wall Street Journal, October 12, 2007; Davis, Managed by the Markets, 207.

52. Peter Drucker, “The New Society I: Revolution by Mass Production,” Harper’s, September 1949, 27.

53. Quoted in Eric J. Weiner, What Goes Up: The Uncensored History of Wall Street as Told by the Bankers, Brokers, CEOs, and Scoundrels Who Made It Happen (New York: Little, Brown, 2005), 31.

54. Claudia Goldin and L. Katz, “Transitions: Career and Family Life Cycles of the Educational Elite,” American Economic Review 98, no. 2 (2008): 363–69.

55. Gar Mudmundsson, “How Might the Current Financial Crisis Shape Financial Sector Regulation and Structure?” (keynote address, Financial Technology Conference, Boston, September 23, 2008), http://www.bis.org/speeches/sp081119.htm (accessed October 6, 2011).

56. James K. Galbraith and Travis Hale, “The Evolution of Economic Inequality in the United States, 1969–2007: Evidence from Data on Inter-industrial Earnings and Inter-Regional Income,” University of Texas Inequality Project Working Paper no. 57 (Austin: Lyndon B. Johnson School of Public Affairs, February 2, 2009).

57. Steven M. Yoder, “Airline, Auto Industries: Pension Protection Act Leaves Door Open to Bankruptcies, Mass Payouts,” Bankruptcy Strategist, February 2007.

58. Phyllis C. Borzi, “Retiree Health VEBAs: A New Twist on an Old Paradigm; Implications for Retirees, Unions and Employers,” Henry J. Kaiser Family Foundation, March 2009.

59. Davis, Managed by the Markets, 204.

60. Christopher Howard, The Hidden Welfare State: Tax Expenditures and Social Policy in the United States (Princeton, NJ: Princeton University Press, 2007).

61. Lawrence Mishel, “Where Has All the Income Gone? Look Up,” Economic Policy Institute, March 3, 2010, http://www.epi.org/publication/where_has_all_the_income_gone_look_up/ (accessed October 6, 2011).

62. Andrea Orr, “At the Top: Soaring Incomes, Falling Tax Rates,” Economic Policy Institute, April 7, 2010, http://www.epi.org/publication/for_americas_top_earners_growing_incomes_falling_tax_rates/ (accessed October 6, 2011).

63. Ibid.

64. Andrea Orr and Anna Turner, “Small Group Takes Large Slice of Capital Income,” Economic Policy Institute, April 14, 2010, http://www.epi .org/publication/small_group_takes_large_slice_of_capital_income/ (accessed October 6, 2011).

65. Robert Wade, “The Economy Has Not Solved Its Problems,” Challenge 54, no. 2 (March/April 2011): 25–26.

66. Ajay Kapur, Niall MacLeod, and Narendra Singh, “Plutonomy: Buying Luxury, Explaining Global Imbalances,” Citigroup Global Markets, October 16, 2005, 1–2.

67. Rick Newman, “Why Rich Consumers Matter More,” U.S. News Online, December 3, 2009, http://money.usnews.com/money/blogs/flowchart/ 2009/12/03/why-rich-consumers-matter-more (accessed October 6, 2011).

68. Menzie D. Chinn and Jeffrey A. Frieden, Lost Decades: The Making of America’s Debt Crisis and the Long Recovery (New York: W. W. Norton, 2011), 103–104.

69. WSJ Staff, “Barney Frank Celebrates Free Market Day,” Wall Street Journal, September 17, 2008.

70. Dean Baker, The End of Loser Liberalism: Making Markets Progressive (Washington, DC: Center for Economic and Policy Research, 2011), 18–19.

71. Alan Blinder and Mark Zandi, “How the Great Recession Was Brought to an End,” www.economy.com/mark-zandi/documents/End-of-Great-Recession.pdf (accessed July 27, 2010).

72. Jeffrey Sachs, “Two Parties, No Solutions to Jobs,” Huffington Post, September 16, 2011.

73. Chinn and Frieden, Lost Decades, 148.

74. Ibid., 155.

75. Lawrence Michel, “Huge Disparity in Share of Total Wealth Gain Since 1983,” Economic Snapshot, Economic Policy Institute, September 15, 2011, http://www.epi.org/publication/large-disparity-share-total-wealth-gain/ (accessed October 6, 2011).

CHAPTER 17: THE NEXT AMERICAN ECONOMY

1. Joseph Schumpeter, Capitalism, Socialism, and Democracy (New York and London: Harper and Brothers, 1942), 82–83.

2. Theodore Roosevelt, “Who Is a Progressive?” (speech delivered in April 1912 in Louisville, KY), www.teachingamericanhistory.org (accessed November 1, 2011).

3. “FTZ Facts and Features,” Port Authority of New York and New Jersey, www.panynj.gov (accessed November 1, 2011).

4. Carmen M. Reinhart and Kenneth Rogoff, This Time Is Different: Eight Centuries of Financial Folly (Princeton, NJ: Princeton University Press, 2009).

5. Ronald Bailey, “Post-Scarcity Prophet,” Reason, December 2001.

6. The figures are from Jesse Ausubel, quoted in Ronald Bailey, “The Kyoto Protocol Launches! But Will It Matter?” Reason.com, February 16, 2005.

7. Adam Smith, The Wealth of Nations (Indianapolis: Liberty Classics, 1976), 1:343.

8. Congress of the United States, Office of Technology Assessment, “Innovation and Commercialization of Emerging Technologies,” September 1995, OTA-BP-ITC-165 (Washington, DC: U.S. Government Printing Office, September 1995), 4.

9. Ronald Bailey, “Post-Scarcity Prophet,” Reason, December 2001.

10. Chart 1 from Evan Koening, “U.S. Economy Productivity Growth,” www.dallasfed.org.

11. J. Bradford DeLong, “Productivity Growth in the 2000s,” Draft 1.2, www.j-bradford-delong.net, March 2002.

12. Susan N. Houseman, “Offshoring and Import Price Measurement,” Survey of Current Business (February 2011): 7–11l; Susan N. Houseman, Christopher Kurz, Paul Lengermann, and Benjamin Mandel, “Offshoring Bias in U.S. Manufacturing,” Journal of Economic Perspectives 25, no. 2 (2011): 111–32; Michael Mandel and Susan Houseman,“Not All Productivity Gains Are the Same. Here’s Why,” What Matters/McKinsey&Company, June 1, 2011.

13. Michael Lind, “Public Purpose Finance: Investing in America’s Future Through Regional Economic Development Banks” (Washington, DC: New America Foundation, September 9, 2010).

14. Adam Smith, The Wealth of Nations, 334.

15. Jesse Jenkins, Devon Swezey, and Yael Borofsky, “Where Good Technologies Come From,” Case Studies in Innovation, Breakthrough Institute, December 2010.

16. Lind, “Public Purpose Finance.”

17. Michael Lind, “Mailing Our Way to Solvency,” New York Times, October 5, 2008.

18. The Papers of Alexander Hamilton, ed. Harold C. Syrett et al. (New York: Columbia University Press, 1963), 3:419, quoted in Frank Bourgin, The Great Challenge: The Myth of Laissez-Faire in the Early Republic (New York: George Braziller, 1989), 80.

19. Quoted in Michael Lind, “Healthcare Can Get America Working,” Financial Times, September 24, 2009.

20. Congressional Budget Office (CBO), Figure 2-1, “Total Spending for Health Care Under CBO’s Extended-Baseline Scenario,” in “The Long-Term Budget Outlook,” June 2009; Michael Lind and David McNamee, The American Social Contract: A Promise to Fulfill (Washington, DC: New America Foundation, 2008), 46–47.

21. Lyndon Baines Johnson, “Remarks at the Signing of the Immigration Bill” (speech, Liberty Island, New York, October 3, 1965), http://www .lbjlib.utexas.edu/johnson/archives.hom/speeches.hom/651003.asp (accessed December 8, 2011).

22. George Washington, “Circular to the States,” June 8, 1783, in The Writings of George Washington from the Original Manuscript Sources, 1745–1799, 39 vols., ed. John C. Fitzpatrick (Washington, DC: US Government Printing Office, 1931), 44.

23. Franklin Delano Roosevelt, “Acceptance Speech for the Re-Nomination of the Presidency,” June 27, 1936, in Great Speeches, ed. John Grafton (Mineola, NY: Dover, 1999), 47–51.

24. Roy P. Basler, ed., The Collected Works of Abraham Lincoln, 8 vols. (New Brunswick, NJ: Rutgers University Press, 1953), 5: 357.