GAry m. WAlton | HuGH rockoff Walton Rockoff H i s tory of t H e H is tory of t H e A mer icA n A mer icAn A m economy economy e r H T HIR T EENT H EDITION THIRTEENTH EDITION i i cs t A o nr y e o c f ot H n e o m y To register or access your online learning solution or purchase materials for your course, visit www.cengagebrain.com. THIRTEENTH EDITION GAry m. WAlton HuGH rockoff Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202 04609_cvr_ptg01_hires.indd 1 SE — Walton/Rockoff — History of the American Economy, 13e ISBN-13: 9781337104609 ©2018 Designer: Lumina 10/08/17 7:54 AM Text & Cover printer: Xxxxxx Binding: Case Trim: 8 x 10 CMYK Fit your coursework into your hectic life. Make the most of your time by learning your way. Access the resources you need to succeed wherever, whenever. Study with digital flashcards, listen to audio textbooks, and take quizzes. 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Cengage Learning is a leading provider of customized learning solutions Sr. Art Director: Michelle Kunkler with employees residing in nearly 40 different countries and sales in more than 125 countries around the world. Find your local representative Cover Image: hxdbzxy/Shutterstock.com at www.cengage.com Cengage Learning products are represented in Canada by Nelson Education, Ltd. To learn more about Cengage Learning Solutions, visit www.cengage.com Purchase any of our products at your local college store or at our preferred online store www.cengagebrain.com Printed in the United States of America Print Number: 01 Print Year: 2017 Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202 04609_fm_ptg01_i-xxIv.indd 2 17/08/17 5:30 PM In memory of our dissertation advisors, the late Douglass C. North and Robert W. Fogel, Nobel Laureates in Economics, 1993 Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202 04609_fm_ptg01_i-xxIv.indd 3 17/08/17 5:30 PM Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202 04609_fm_ptg01_i-xxIv.indd 4 17/08/17 5:30 PM Brief Contents PREFACE ACknowlEdgmEnts About thE AuthoRs Chapter 1 Growth, Welfare, and the American Economy part 1 The Colonial Era: 1607–1776 Chapter 2 Founding the Colonies Chapter 3 Colonial Economic Activities Chapter 4 The Economic Relations of the Colonies Chapter 5 Economic Progress and Wealth Chapter 6 Three Crises and Revolt part 2 The Revolutionary, Early National, and Antebellum Eras: 1776–1860 Chapter 7 Hard Realities for a New Nation Chapter 8 Land and the Early Westward Movements Chapter 9 Transportation and Market Growth Chapter 10 Market Expansion and Industry in First Transition Chapter 11 Labor during the Early Industrial Period Chapter 12 Money and Banking in the Developing Economy Chapter 13 The Entrenchment of Slavery and Regional Conflict part 3 The Reunification Era: 1860–1920 Chapter 14 War, Recovery, and Regional Divergence Chapter 15 Agriculture’s Western Advance Chapter 16 Railroads and Economic Change Chapter 17 Industrial Expansion and Concentration Chapter 18 The Emergence of America’s Labor Consciousness Chapter 19 Money, Prices, and Finance in the Postbellum Era Chapter 20 Commerce at Home and Abroad v Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202 04609_fm_ptg01_i-xxIv.indd 5 17/08/17 5:30 PM vi Brief Contents part 4 War, Depression, and War Again: 1914–1946 Chapter 21 World War I, 1914–1918 Chapter 22 The Roaring Twenties Chapter 23 The Great Depression Chapter 24 The New Deal Chapter 25 World War II part 5 The Postwar Era: 1946 to the Present Chapter 26 The Changing Role of the Federal Government Chapter 27 The Changing Role of the Federal Government: Consumer Safety, Agriculture, the Environment, and Housing Chapter 28 Monetary Policy, Fiscal Policy, and the Business Cycle after World War II Chapter 29 Manufacturing, Productivity, and Labor Chapter 30 Achievements of the Past, Challenges for the Future subject Index name Index Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202 04609_fm_ptg01_i-xxIv.indd 6 17/08/17 5:30 PM Contents PREFACE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xix ACknowlEdgmEnts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xxi About thE AuthoRs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xxiii Chapter 1 Growth, Welfare, and the American Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Americans 1900–2017 1 A Study with a Purpose 6 Nation Building 6 Critical Skills for Personal Development 8 The Long Road Out of Poverty 9 An Institutional Road Map to Plenty 13 part 1 The Colonial Era: 1607–1776 Chapter 2 Founding the Colonies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 European Background to the Voyages of Discovery 22 European Roots and Expanding Empires 23 Portugal and the First Discoveries 23 Portugal and Spain: Expanding Empires 24 The Latecomers: Holland, France, and England 26 First British Settlements in North America 27 Perilous Beginnings 27 Early Reforms 28 Bringing in Settlers 30 Demographic Change 32 Underpopulation Despite High Rates of Population Growth 32 Population Growth in British North America 33 The Racial Profile 35 Imperial European Rivalries in North America 36 Chapter 3 Colonial Economic Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Land and Natural Resource Abundance, Labor Scarcity 40 Agriculture and Regional Specializations 41 The Southern Colonies 41 The Middle Colonies 46 New England 47 vii Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202 04609_fm_ptg01_i-xxIv.indd 7 17/08/17 5:30 PM viii Contents The Extractive Industries 47 Furs, Forests, and Ores 47 Sea Products 48 The Manufacturing Industries 49 Household Manufacture and Craftshops 50 Mills and Yards 51 Shipbuilding 52 Occupational Groups 53 Chapter 4 The Economic Relations of the Colonies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 English Mercantilism and the Colonies 56 The Early Navigation Acts 57 Exports, Imports, and Markets 58 Overseas Shipping and Trade 59 Intercolonial Commerce 63 Money and Trade 64 Commodity Money 64 Coins, Specie, and Paper Money 65 Trade Deficits with England 66 Interpretations: Money, Debt, and Capital 67 Chapter 5 Economic Progress and Wealth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 Growth and Change in the Colonial Economy 73 Productivity Change in Agriculture 73 Productivity Gains in Transportation and Distribution 77 Technological Change and Productivity 81 Wealth Holdings in the Colonies 84 Per Capita Wealth and Income, 1774 85 The Distribution of Income and Wealth 86 Chapter 6 Three Crises and Revolt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 The Old Colonial Policy 90 The New Colonial Policy and the First Crisis 93 More Changes and the Second Crisis 95 The Third Crisis and Rebellion 96 Support in the Countryside 98 Economic Exploitation Reconsidered 101 part 2 The Revolutionary, Early National, and Antebellum Eras: 1776–1860 Chapter 7 Hard Realities for a New Nation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106 The War and the Economy 106 The Constitution 108 Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202 04609_fm_ptg01_i-xxIv.indd 8 17/08/17 5:30 PM