What history can tell us about economics

I've had a number of people tell me over the years that with my interest in history, I should have been a history teacher. Thus, it's often surprising for them to hear that I majored in business instead. I also got a certificate in economics, which might likewise seem very different from history. And it's quite true that economics and history are two very different majors. But there is actually some overlap between the subjects - more than you might think - and so your average economics class has more history content than one might suppose.

What is the overlap between history and economics?

What is the overlap between these things? In short, there are two main areas where they intersect: the history of economics, and the economics of history. The history of economics is the history of economic thought - or the history of the social science of economics, and how people have attempted to find answers to important questions about economics. It has roots going back far before Adam Smith, but the modern social science of economics began with this great individual's magnum opus in 1776 - a book called "The Wealth of Nations." It is one of the great books of history (up there with Isaac Newton's Principia), and it has had an enormous influence on the way that people think about economics. (Here's my blog post about it, if you're interested.)

Adam Smith

The economics of history is about historical case studies in economic policy

The economics of history, on the other hand, is about the various economic problems that societies have faced; and their various attempts to find solutions to these problems. History is rife with economic case studies that show us which policies work and which ones don't. A good economist tries to learn from these lessons of economic history. I have talked about the history of economics in a number of posts, so I will instead focus this post on the economics of history - about the economic case studies that my classes have talked about, and about what history has to offer us in the way of practical experience with economic policy.

JFK and RFK: A few movies about their lives

"And so, my fellow Americans: ask not what your country can do for you--ask what you can do for your country. My fellow citizens of the world: ask not what America will do for you, but what together we can do for the freedom of man."

- Inaugural Address of John F. Kennedy (20 January 1961)

The Kennedy brothers are among the most fascinating people in American history. When I say this, I'm not talking about Ted Kennedy (the Democratic Senator), or eldest brother Joe Kennedy, Jr. (who was killed in World War II); but rather, JFK and RFK. I'm not a big fan of Teddy Kennedy, as he represented everything that's wrong with today's Democrats; but the Kennedy president and his brother Robert (who served as attorney general) were actually quite good.

(from left ro right)

Bobby Kennedy, Ted Kennedy, and John F. Kennedy

Joe Kennedy, Jr.

JFK has the distinction of being the last good Democrat president. With the chain of incompetents the Democrats have produced since these times, it's hard to fathom that there was once actual competence in the Democratic Party. But in these days, they had FDR, Truman, and Kennedy. FDR was incompetent on economic policy, but he compensated for it in his handling of World War II. Moreover, Truman and Kennedy were great on both foreign and domestic policy. I won't spend too much time evaluating the Kennedy presidency, as this blog post is about the different Kennedy media; but suffice it to say here that he was quite good.

A review of “The Forgotten Man: A New History of the Great Depression”

We've all heard stories about how bad things were during the Great Depression, with extensive poverty and massive unemployment - perhaps the only economic crisis worse than our current one. But the history classes don't often go into the question of why; leaving the complicated subject of causation to economists, rather than the historians of the subject. When history classes do comment on the "why" of the Depression, they often paint a glowing picture of big government, with some economics classes not being much better in this regard.

Poor mother and children - Oklahoma, 1936

Some thoughts about business education

"In a free-enterprise, private-property system, a corporate executive is an employee of the owners of the business. He has a direct responsibility to his employers. That responsibility is to conduct the business in accordance with their desires, which generally will be to make as much money as possible while conforming to the basic rules of the society, both those embodied in law and those embodied in ethical custom."

– Milton Friedman, economist

I have both a practical side and an impractical side. My Facebook friends probably see the impractical side of me more, as I post about things like history and languages, and stay away from the more mundane topics of everyday life. (Maybe having Ramen noodles for dinner is interesting to someone, but I never found it that fascinating; and generally speaking, I don't post about practical things - most people would probably find it boring if I did.)

I was a business major with a concentration in marketing, and a certificate in economics

Nonetheless, I have a strong practical side, which manifested itself in my choice of college majors. I actually majored in Business Administration with a concentration in Marketing. It might seem strange that a guy who spends his time learning Ancient Greek would major in business, but it's true - I even got a certificate in Business Economics to boot. (I never took any business classes in high school, although I did take some computers classes that ended up being helpful for my business degree, since that degree required some classes in computer information systems.) Thus, I have some firsthand experience with vocational education in my academic career, and thought that I would write a post about it - thus commenting on the one subject I actually have a degree in, and the educational issues in that field.

A review of PBS's “Transcontinental Railroad” movie

"[The Congress shall have the power] To establish post-offices and post-roads ..."

- The United States Constitution, Article 1, Section 8, Paragraph 7

It allowed a continent to be crossed in just a week, where before it had taken six months or more. It enabled fast transport for trade goods of all kinds, connecting the economies of the continent's East and West coasts. And it unleashed a wave of settlement and colonization, which would have massive effects on the population spread and distribution in the West - and by extension, the history, politics, economics, and even geography of the country.

Snow gallery (a portion of the railroad), while under construction

Plato and The Church of Jesus Christ of Latter-Day Saints

Aristotle

"Have you ever heard of Plato? Aristotle? Socrates?" "Yes." "Morons." (Or were they?)

Plato

I felt inspired to write this piece about Plato and The Church of Jesus Christ of Latter-Day Saints. These subjects might seem to be unconnected, but there are a few quotes from Latter-Day Saints' General Conferences about the Ancient Greek philosopher Plato. Most of them are favorable, while one of them is critical of his philosopher-king idea. Mostly they're favorable, though, and I will discuss these General Conference quotes in detail now.

A review of Simon Schama’s “A History of Britain”

"That the two Kingdoms of England and Scotland shall upon the First day of May which shall be in the year One thousand seven hundred and seven and for ever after be united into one Kingdom by the name of Great Britain ... "

- "Union with Scotland Act of 1706," Article I (passed by the Parliament of England, and later made official by the "Union with England Act of 1707," passed by the Parliament of Scotland)

I should preface this review, for my international readers, by saying that I am an American; but an American of mostly British descent, whose ancestors come mainly from England and Scotland. (England and Scotland today are both part of the United Kingdom of Great Britain.) I identify strongly with Britain; not only because of my ancestry, but because Britons and Americans share common values such as freedom and democracy; and because we have been allies in war and peace for over two centuries; not fighting a war against each other since 1815 (the year the War of 1812 ended). Thus, I am much interested in the history of Great Britain, and thought I'd learn a little bit more about it by watching this series.