Capitalism and Individualism in America This book provides a concise and accessible history of the relationship between the individual and capitalism in the United States. The text is devoted to tracking the historical development of important themes, while addressing key episodes in the progress of American capitalism within these, such as the Great Depression and New Deal. The book will introduce students to the key philosophical principles that have been the most influential in the history of free enterprise in the United States as well as exploring the ways in which these ideas have been popularly understood by Americans from the late eighteenth century to the present. Liberalism and Neoliberalism, entrepreneurialism, slavery and racial capitalism, and business and gender are all assessed. The material in this volume is complemented by a set of primary source documents that bring the subject to life. It will be of interest to students of American history, business, and labor history. Gavin Benke is Senior Lecturer in the CAS Writing Program at Boston University. He is also the author of Risk and Ruin: Enron and the Culture of American Capitalism. Introduction to the Series Series Editors Clive Emsley and Gordon Martel History is the narrative constructed by historians from traces left by the past. Historical enquiry is often driven by contemporary issues and, in consequence, historical narratives are constantly reconsidered, reconstructed and reshaped. The fact that different historians have different perspectives on issues means that there is often controversy and no universally agreed version of past events. Seminar Studies was designed to bridge the gap between current research and debate, and the broad, popular general surveys that often date rapidly. The volumes in the series are written by historians who are not only familiar with the latest research and current debates concerning their topic, but who have themselves contributed to our understanding of the subject. The books are intended to provide the reader with a clear introduction to a major topic in history. They provide both a narrative of events and a critical analysis of contemporary interpretations. They include the kinds of tools generally omitted from specialist monographs: a chronology of events, a glossary of terms and brief biographies of ‘who’s who’. They also include bibliographical essays in order to guide students to the literature on various aspects of the subject. Students and teachers alike will find that the selection of documents will stimulate the discussion and offer insight into the raw materials used by historians in their attempt to understand the past. Capitalism and Individualism in America Gavin Benke Cover image: © North Wind Picture Archives / Alamy Stock Photo First published 2023 by Routledge 4 Park Square, Milton Park, Abingdon, Oxon OX14 4RN and by Routledge 605 Third Avenue, New York, NY 10158 Routledge is an imprint of the Taylor & Francis Group, an informa business © 2023 Gavin Benke The right of Gavin Benke to be identified as author of this work has been asserted in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe. British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data Names: Benke, Gavin, author. Title: Capitalism and individualism in America / Gavin Benke. Description: Milton Park, Abingdon, Oxon ; New York, NY : Routledge, 2023. | Includes bibliographical references and index. Identifiers: LCCN 2022030520 (print) | LCCN 2022030521 (ebook) | ISBN 9780367547622 (hardback) | ISBN 9780367547608 (paperback) | ISBN 9781003090526 (ebook) Subjects: LCSH: United States—Economic conditions. | Capitalism—United States. | Individualism—United States. Classification: LCC HC110.C3 B45 2023 (print) | LCC HC110.C3 (ebook) | DDC 338.0973—dc23/eng/20220713 LC record available at https://lccn.loc.gov/2022030520 LC ebook record available at https://lccn.loc.gov/2022030521 ISBN: 978-0-367-54762-2 (hbk) ISBN: 978-0-367-54760-8 (pbk) ISBN: 978-1-003-09052-6 (ebk) DOI: 10.4324/9781003090526 Typeset in Sabon by Apex CoVantage, LLC Contents List of Figures vi Chronology vii Who’s Who x Acknowledgments xv Introduction 1 1 Philosophies 6 2 Systems 22 3 Organizations 50 4 Mythologies 75 5 Collectives 94 6 Assessment 109 Documents 111 Glossary 142 Further Reading 151 References 159 Index 165 Figures 1.1 Alexis de Tocqueville 11 2.1 Broadside advertising ‘Valuable Slaves at Auction’ 26 2.2 Homestead Act Stamp, 1962 32 3.1 The Tournament of Today political cartoon, 1883 56 4.1 Ben the Luggage Boy, 1867, by Horatio Alger, Jr. 81 4.2 Booker T. Washington 85 Chronology 1607: English colonists establish the Jamestown colony in Virginia. 1619: The first enslaved Africans arrive in North America. 1630: English Puritans establish the Massachusetts Bay Colony. c. 1689: John Locke publishes Two Treatise on Government. 1776: Adam Smith writes The Wealth of Nations. July 4, 1776: The Declaration of Independence is signed. 1791: Alexander Hamilton issues Report on the Subject of Manufactures. 1793: Eli Whitney invents the cotton gin. 1808: The international slave trade comes to a close. 1815: The Boston Associates forms, establishing textile mills across parts of New England. 1819: In its ruling on Dartmouth v. Woodward, the U.S. Supreme Court declares that a corporation is an ‘artificial person.’ 1825: The Erie Canal is completed. 1830: The Indian Removal Act sets the stage for the violent dis- possession of native American land and the continuation of settler colonialism. 1831–1832: Alexis de Tocqueville visits the United States. 1832: President Jackson vetoes a bill intended to recharter the Second Bank of the United States. 1837: Economic panic. 1841: The Preemption Act, 1841: Ralph Waldo Emerson publishes ‘Self-Reliance.’ 1857: Economic panic. 1862: The Homestead Act. 1863: The Emancipation Proclamation. 1865: The Thirteenth Amendment to the Constitution bans slav- ery in the United States. 1868: Marshall Fields opens his store in downtown Chicago. 1877: The Great Railroad Strike. 1882: The Chinese Exclusion Act is signed into law. viii Chronology 1883: Frederick Winslow Taylor begins his time-motion studies to develop his ideas of scientific management. 1885: The Foran Act is signed into law. 1886: The Haymarket Riot. 1886: Santa Clara v. Southern Pacific Railroad Company cements corporate personhood in the law. 1890: The Sherman Antitrust Bill is signed into law. 1893: The World’s Fair and Columbian Exposition is held in Chicago. 1893: Frederick Jackson Turner declares the frontier has closed during the Columbian Exposition. 1896: May 18: In the case of Plessy v. Ferguson, the U.S. Supreme Court declares segregation to be constitutional. 1899: May 30–31: Under the leadership of W.E.B. DuBois, Atlanta University’s Fourth Conference for the Study of the Negro Problems focuses on issues facing Black businesses. DuBois publishes ‘The Negro in Business’ later in the year. July: The Hampton Negro Conference specifically addresses issues of Black businesses. 1900: The National Negro Business League is established. 1906: Henry Ford develops the Model T. 1906: Theodore Roosevelt’s administration invokes the Sherman Antitrust Act in a first step toward breaking up Standard Oil. 1911: Frederick Winslow Taylor publishes his Principles of Scien- tific Management. 1913: Ford introduces the continuous assembly line. 1914: Louis Brandeis publishes Other People’s Money. 1917: Immigration Act. 1919: Marcus Garvey launches the Black Star Line. 1921: An enraged white mob attacks and destroys the Green- wood section of Tulsa, Oklahoma, also known as ‘Black Wall Street.’ 1924: General Motors introduces the annual model change, as well as the slogan ‘a car for every purse and purpose.’ 1933: National Industrial Recovery Act is signed into law. 1935: The Wagner Act is signed into law. 1936: Charlie Chaplin satirizes the effect of mechanized factory work on the individual in Modern Times. The ‘Sit-Down’ Strike at a General Motors plant in Flint, Michigan, is a big win for organized labor. 1941: EO 8802. 1942: The Bracero Program begins. 1947: The Taft-Hartley Act establishes the ‘right-to-work’ princi- ple that uses the rhetoric of individualism to curtail union power. Chronology ix 1947: Mont Pelerin Society holds its first meeting in Switzerland. 1954: Brownie Wise becomes the first woman on the cover of Business Week. 1958: Ayn Rand publishes Atlas Shrugged. 1965: Delano Grape Strike begins. 1969: EO 11458 (OMBE). 1971: Operation PUSH. 1973: Black Enterprise begins publishing. 1973: Real wages begin to decline. 1973: OPEC oil embargo begins. 1980: Milton Friedman’s series, Free to Choose, begins airing on PBS. 1981: President Ronald Reagan fires striking air traffic controllers, signaling a decline in union power. 1984: January 22: Apple’s ad for the Macintosh personal com- puter airs during the Super Bowl. 1987: British prime minister Margaret Thatcher declares ‘there is no society, only individuals.’ 1996: In his State of the Union address, President Bill Clinton declares the end of big government. 1999: World Trade Organization protests in Seattle. 2011: Occupy Wall Street. 2012: Individual success becomes a key point of contention in the presidential election.