The Economy: Illustrating U.S. History in the Classroom
by Bruce Lesh and Philip Nicolosi
The thoughtful essays in this issue of History Now provide
numerous opportunities to examine the application of economic theory,
to evaluate the economic causes of historic events, and to consider
the impact of financial institutions on the course of American history.
They also provide harried teachers, often expected to cover content
and theory in all the social sciences, a chance to achieve a valuable
level of mastery in one critical area.
By providing an overview of the various economic situations that emerged as
the United States matured from newly independent colonies to an economic
powerhouse, Joyce Appleby’s essay allows teachers to gain a broad
overview of the economic landscape of the nineteenth century. Her essay
can serve as either an introduction of things to come or as a summary
for a survey course in eighteenth and nineteenth century America. Either
way, it will certainly prove to students that history is often unfinished
business and the solutions in one time period don’t necessarily
translate into success in a later era.
We know from experience that without a rudimentary understanding of
the US banking system and the stock market, critical analysis of many
key issues and historical episodes falls flat. For example, when we
try to capture the Washington Administration’s efforts to get
the nation on firm financial footing after independence, we often find
ourselves explaining Hamilton’s plan with simplistic, hypothetical
examples of savings bonds and government debt. Likewise, when addressing
Jackson’s war against the Bank of the United States or Roosevelt’s
Bank Holiday, we wind up providing brief, “bumper sticker”
overviews, with limited definitions of financial terms. Students’
understanding of these major issues remains superficial, even if they
manage to give the ‘right’ answers in class or on tests.
The truth is, young people who can’t really wrap their brains
around a world without paper money and secure bank deposits can’t
be expected to easily grasp Hamilton’s financial plans or the
Stock Market Crash. And, although we may want them to understand the
role of banks and the Federal Reserve, many don’t even understand
how a credit card works. This is why Richard Sylla’s essay on
the American banking system and Brian Murphy’s essay on the stock
market are so valuable. They provide us with quick economic tutorials,
simplifying the most complex of economic issues and clarifying, in digestible
language, both what banks actually do and the importance of the NYSE.
Their essays are certain to make our classroom experiences, and those
of our students, far less frustrating.
As our students get bombarded with news reports about whether big businesses
and corporations are good or bad, “present-ism” reigns in
their opinions. Whatever they last heard on the news or at the dinner
table dominates our history classrooms. T.J. Stiles' essay, Captains
of Industry or Robber Barons?, provides a comprehensive framework
on which we can base an historical debate on a contemporary topic. By
examining the likes of Vanderbilt, Carnegie, and Rockefeller, Stiles
traces the evolution of the debate over whether big business is good
or bad for the US and whether these businesses required more regulation
or were simply “too big to fail.” Stiles ends the essay
by stating, “In a sense, it does not matter whether one sees Vanderbilt
and his peers as robber barons or captains of industry; it is the fact
that we argue about them as one or the other that matters most. They
not only changed the way we live—they changed the way we think.”
This analysis underscores the importance of thinking of history as an
argument without end and it fosters the importance of seeing both sides
of any historical debate with current relevance.
Certainly one of the most daunting topics to get students to understand
is basic economic theory and its application to different time periods
and presidential policies. Roger EA Farmer’s essay on economic
theory breaks down the last 100 years of history into three distinct
periods dominated by two competing economic theories – classical
and Keynesian. Students would certainly cringe and dash for the nearest
exit if we began the class with, “Today we are going to discuss
two different economic theories. Please take out your notebooks.”
Fortunately, Farmer’s essay presents, in succinct, manageable
sections, the background of each theory and their applications and effects
over numerous periods in American History. Students best learn history
when there is context and application. Farmer provides such context
by describing the economic climate throughout periods in the twentieth
century and he clearly articulates how competing economic theories were
applied at various times throughout those periods. We found ourselves
reading each section and reevaluating our approach to teaching these
topics to teenagers. Without passing judgment on either or suggesting
alternate historical “what ifs,” Farmer effectively provides
a classroom teacher the necessary background to engage students in serious
historical analysis and debate about the role of competing economic
theories in American history.
While our training may not exclusively lie within the economic realm,
it does not mean that we should shy away from the economic issues of
the periods we teach. With a better understanding of the economics,
we become better teachers of the past.
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