The American System was developed in opposition to the then-dominant economic theories of Adam Smith and David Ricardo, in part because classic British economic theory seemed to imply that reductions in wages were positive for economic growth by making manufacturing more competitive in the international markets. A main focus of the American System, however, was... Sustaining high wages... thereby both driving productivity growth and creating a large domestic consumption market for American producers...First U.S. Bank Regulations May Look Strikingly Familiar - "One hundred fifty years ago, the U.S. was two years into a brutal Civil War. The financial cost left the federal government under enormous stress, leading to a result no one had imagined: the first modern system of bank regulation."
Modern credit, developed during the financial revolution of 1620–1720, laid the foundation for England's political, military, and economic dominance in the eighteenth century. Possessed of a generally circulating credit currency, a modern national debt, and sophisticated financial markets, England developed a fiscal-military state that instilled fear in its foes and facilitated the first industrial revolution. Yet a number of casualties followed in the wake of this new system of credit. Not only was it precarious and prone to accidents, but it depended on trust, public opinion, and ultimately violence.Economic Development in the Americas since 1500: Endowments and Institutions
Relative to the baseline provided by Canada and the Northern United States, the most important institutional divergences of the Caribbean and Latin America that they see come in the areas of suffrage, education, and land policy... institutional trajectories once embarked upon became very difficult to change... The political power of the entrenched and unequal elite simply turned out to be too great. This is a brilliant book, an example of what economic historians do best--better than non-economic historians, and better than non-historical economists.
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