Personal Research: something that interests me… Terry Onley

The Economic history of the USA

European colonies in the 15th-18th Centuries were marginal colonial economies.

These grew into 13 small independent farming economies. Circa 1776, these

colonies revolted against England, at least in part because of the heavy taxes on

goods imported into the colonial states.

In the approximately 230 years since, the USA has grown into an economic giant

that represents about ¼ of the world economy.

Why? Well, the USA is a large unified

market with a supportive political-legal

system, lots of valuable natural resources (including a bunch of

farmland), a strong entrepreneurial spirit, generally high wages,

and millions of productive immigrants.

At the beginning, the USA experienced great economic difficulty,

primarily from the cost of the Revolution, and British blockades.

In 1776, the new government issued about $246,000,000 in

paper currency, which rapidly devalued, and was later redeemed at ~1 cent on the

dollar. The issue of 1780-81 also devalued sharply, but was eventually redeemed by

the Fed at Face value in 1791.

Loans from wealthy Americans (not much) and France financed much of the

revolution.(More research required in this area)’

1st common market in 1787. Hamilton wanted a strong,

authoritative central government. When Jefferson became

president in 1801, he pushed for laws and policies that would protect the

average person, but the Hamiltonian factions were still strong.

More research and development to follow…

Two cents!