In The Economic Growth of the United States 1790-1860, Douglass Cecil North examined the development of the nation’s economy. This book was meant to be a study in both economic growth and the economic history of the United States. North told his story of the United States shifting from a national economy centered around foreign trade to one centered around interregional flow of capital and goods bringing the United States’ economy into the larger context of an Atlantic one,
North began his book by focusing on broad economic theory rooted in rhetoric in order to set up his argument for American growth. He argued, “The successful economy grows because the initial developments from the export industry lead to a widening of the export base and …show more content…
The social stratification of America nurtured individual aspirations of economic prosperity. Even the Westerners living the frontier lifestyle of self sufficiency would eventually come to contributing to a national market as transport methods became more advanced and costs were lowered. North averred that the establishment of a market economy was key to economic growth, for “it exerted a continual pull on productive factors, attracting an increasing percentage of resources into production for the market and out of pioneer self-sufficiency.” Overall, looking at 1790 America through the eyes of Douglass Cecil North makes it obvious that growth was to occur; America was set up for …show more content…
Domestic trade at this time was primitive with transport costs high and little to be said of an American industry. However, the Americans were still able to turn considerable profits by playing off the warring powers in Europe. North placed so much confidence in the influence Europe had over the American economy he wrote, “the commercial and military policies of England and France and the response of the American government to them were the source for every expansion and contraction.” He supported this by assigning the ups and downs of graphs corresponding foreign influences. 1793-1801 saw a drop in re export and carrying trade due to the harassment of American traders by Europe. With the revitalization of European conflict in 1803-1807, American shipping
North began his book by focusing on broad economic theory rooted in rhetoric in order to set up his argument for American growth. He argued, “The successful economy grows because the initial developments from the export industry lead to a widening of the export base and …show more content…
The social stratification of America nurtured individual aspirations of economic prosperity. Even the Westerners living the frontier lifestyle of self sufficiency would eventually come to contributing to a national market as transport methods became more advanced and costs were lowered. North averred that the establishment of a market economy was key to economic growth, for “it exerted a continual pull on productive factors, attracting an increasing percentage of resources into production for the market and out of pioneer self-sufficiency.” Overall, looking at 1790 America through the eyes of Douglass Cecil North makes it obvious that growth was to occur; America was set up for …show more content…
Domestic trade at this time was primitive with transport costs high and little to be said of an American industry. However, the Americans were still able to turn considerable profits by playing off the warring powers in Europe. North placed so much confidence in the influence Europe had over the American economy he wrote, “the commercial and military policies of England and France and the response of the American government to them were the source for every expansion and contraction.” He supported this by assigning the ups and downs of graphs corresponding foreign influences. 1793-1801 saw a drop in re export and carrying trade due to the harassment of American traders by Europe. With the revitalization of European conflict in 1803-1807, American shipping