The Emergence of Capitalism in Early America

The first comprehensive examination of early American economic thought in over a generation, The Emergence of Capitalism in Early America challenges the traditional narrative that Americans were born committed to the principles of Adam Smith. Americans are shown to have developed a distinct brand of hybrid capitalism, suited to the nation’s unique political, intellectual, cultural, and economic histories. Given America’s primary position in the history of capitalism, its economists were well situated to comment on market phenomenon. Covering a broad range of the period’s economic literature and offering close analyses of the antebellum reception of Smith’s Wealth of Nations, this book rescues America’s first economists from historical neglect. In thematically organized chapters, the intellectual cultures of American protectionism and free trade are examined. Protectionism exercised enormous influence in the discourse, constituting what rightly has been called an ‘American political economy.’ Henry Carey is highlighted as the central thinker in protectionist thought, providing an economic blueprint for the nation’s future industrial and commercial supremacy. Sharp regional divisions existed among the nation’s strongest proponents of free-trade ideology, namely Calhoun, Wayland, McVickar, Vethake, Cardozo, and Cooper, as well as important theoretical distinctions with Smithian-inspired laissez-faire. In a separate chapter, American conservative economists—among others, Fitzhugh and Holmes—are positioned alongside antebellum socialists—Skidmore and Byllesby—illustrating the rather awkward ideological arrangements attendant to emergent capitalism. Finally, the tricky relationship Americans have held with financial institutions is explored. Beginning with Hamilton, this book analyzes the financial literature as Americans learned to live with arguably the most complex and misunderstood manifestation of capitalism—finance. Due to the enormous influence of Adam Smith's The Wealth of Nations on Western liberal economics, a tradition closely linked to the United States, many scholars assume that early American economists were committed to Smith's ideas of free trade and small government. Debunking this belief, Christopher W. Calvo provides a comprehensive history of the nation's economic thought from 1790 to 1860, tracing the development of a uniquely American understanding of capitalism. The Emergence of Capitalism in Early America shows how American economists challenged, adjusted, and adopted the ideas of European thinkers such as Adam Smith, David Ricardo, and Thomas Malthus to suit their particular interests. Calvo not only explains the divisions between American free trade and the version put forward by Smith, but he also discusses the sharp differences between northern and southern liberal economists. Emergent capitalism fostered a dynamic discourse in early America, including a homegrown version of socialism burgeoning in antebellum industrial quarters, as well as a reactionary brand of conservative economic thought circulating on slave plantations across the Old South. This volume also traces the origins and rise of nineteenth-century protectionism, a system that Calvo views as the most authentic expression of American political economy. Finally, Calvo examines early Americans' awkward relationship with capitalism's most complex institution—finance. Grounded in the economic debates, Atlantic conversations, political milieu, and material realities of the antebellum era, this book demonstrates that American thinkers fused different economic models, assumptions, and interests into a unique hybrid-capitalist system that shaped the trajectory of the nation's economy. Cover 1 The Emergence of Capitalism in Early America 2 Title 4 Copyright 5 Dedication 6 CONTENTS 8 ACKNOWLEDGMENTS 10 1. Introduction: Capitalism and Antebellum Thought 12 2. Laissez-Faire in the American Tradition 38 3. Progress and Poverty: Malthus and Ricardo in America 86 4. The Crisis of Free Society: The Southern and Northern Reactionaries 114 5. An American Political Economy 148 6. Henry Carey, Nature, and the Destiny of Man 191 7. Liberalism, Republicanism, and Finance 203 8. Conclusion: The Old and the New in American Economics 245 NOTES 254 INDEX 302 Capitalism And Antebellum Economic Thought -- Laissez-faire In The American Tradition -- Progress And Poverty: Malthus And Ricardo In America -- The Crisis Of Free Society: The Southern And Northern Reactionaries -- An American Political Economy -- Henry Carey, Nature, And The Destiny Of Man -- Liberalism, Republicanism, And Finance -- Conclusion: The Old And The New In American Economics By Christopher W. Calvo. Includes Bibliographical References And Index. Electronic Reproduction. Baltimore, Md Available Via World Wide Web. "Contesting the assumption that early American economists were committed to Adam Smith's ideas of free trade and small government, this book provides a comprehensive history of the nation's economic thought from 1790 to 1860, tracing the development of a uniquely American understanding of capitalism"-- Provided by publisher Provides a comprehensive history of America's economic thought from 1790 to 1860, tracing the development of a uniquely American understanding of capitalism. The Emergence of Capitalism in Early America shows how American economists challenged, adjusted, and adopted the ideas of European to suit their particular interests.