U.S. history is full of frequent and often devastating financial crises. They have coincided with business cycle downturns, but they have been rooted in the political design of markets. Financial crises have also drawn from changes in the underpinning cultures, knowledge systems, and ideologies of marketplace transactions. The United States’ political and economic development spawned, guided, and modified general factors in crisis causation. Broadly viewed, the reasons for financial crises have been recurrent in their form but historically specific in their configuration: causation has always revolved around relatively sudden reversals of investor perceptions of commercial growth, stock market gains, monetary availability, currency stability, and political predictability. The United States’ 19th-century financial crises, which happened in rapid succession, are best described as disturbances tied to market making, nation building, and empire creation. Ongoing changes in America’s financial system aided rapid national growth through the efficient distribution of credit to a spatially and organizationally changing economy. But complex political processes—whether Western expansion, the development of incorporation laws, or the nation’s foreign relations—also underlay the easy availability of credit. The relationship between systemic instability and ideas and ideals of economic growth, politically enacted, was then mirrored in the 19th century. Following the “Golden Age” of crash-free capitalism in the two decades after the Second World War, the recurrence of financial crises in American history coincided with the dominance of the market in statecraft. Banking and other crises were a product of political economy. The Global Financial Crisis of 2007–2008 not only once again changed the regulatory environment in an attempt to correct past mistakes, but also considerably broadened the discursive situation of financial crises as academic topics.
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Financial Crises in American History
Christoph Nitschke and Mark Rose
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Progressives and Progressivism in an Era of Reform
Maureen A. Flanagan
The decades from the 1890s into the 1920s produced reform movements in the United States that resulted in significant changes to the country’s social, political, cultural, and economic institutions. The impulse for reform emanated from a pervasive sense that the country’s democratic promise was failing. Political corruption seemed endemic at all levels of government. An unregulated capitalist industrial economy exploited workers and threatened to create a serious class divide, especially as the legal system protected the rights of business over labor. Mass urbanization was shifting the country from a rural, agricultural society to an urban, industrial one characterized by poverty, disease, crime, and cultural clash. Rapid technological advancements brought new, and often frightening, changes into daily life that left many people feeling that they had little control over their lives. Movements for socialism, woman suffrage, and rights for African Americans, immigrants, and workers belied the rhetoric of the United States as a just and equal democratic society for all its members.
Responding to the challenges presented by these problems, and fearful that without substantial change the country might experience class upheaval, groups of Americans proposed undertaking significant reforms. Underlying all proposed reforms was a desire to bring more justice and equality into a society that seemed increasingly to lack these ideals. Yet there was no agreement among these groups about the exact threat that confronted the nation, the means to resolve problems, or how to implement reforms. Despite this lack of agreement, all so-called Progressive reformers were modernizers. They sought to make the country’s democratic promise a reality by confronting its flaws and seeking solutions. All Progressivisms were seeking a via media, a middle way between relying on older ideas of 19th-century liberal capitalism and the more radical proposals to reform society through either social democracy or socialism. Despite differences among Progressives, the types of Progressivisms put forth, and the successes and failures of Progressivism, this reform era raised into national discourse debates over the nature and meaning of democracy, how and for whom a democratic society should work, and what it meant to be a forward-looking society. It also led to the implementation of an activist state.
