Historians From The United States

"Its objectives to suggest new paths for the study of European economic history rather than fit either of these standard formats. It is more than anything an agenda for new research."

"In some respects this is intended to be a revolutionary book, but in other respects it is very traditional indeed. It is revolutionary in that we have developed a comprehensive analytical framework to examine and explain the rise of the Western world; a framework consistent with and complementary to standard neoclassical economic theory."

"Regarding social order, Fukuyama writes, "The systematic study of how order, and thus social capital, can emerge in spontaneous and decentralized fashion is one of the most important intellectual developments of the late twentieth century." He correctly attributes the modern origins of this argument to F.A. Hayek, whose pioneering contributions to cognitive science, the study of cultural evolution, and the dynamics of social change put him in the forefront of the most creative scholars of the 20th century. But Hayek's views about the "spontaneity" of social order remain controversial. In their extreme form, they imply that all deliberate efforts to manipulate social order — social engineering — are doomed to failure because the complex nature of our cultural heritage makes a complete understanding of the human condition impossible. Hayek was certainly correct that we have, at best, a very imperfect understanding of the human landscape, but "spontaneous" it is not. What distinguishes human evolution from the Darwinian model is the intentionality of the players. The mechanism of variation in evolutionary theory (mutation) is not informed by beliefs about eventual consequences. In contrast, human evolution is guided by the perceptions of the players; their choices (decisions) are made in the light of the theories the actors have, which provide expectations about outcomes."

"Institutions are the humanly devised constraints that structure political, economic, and social interaction. They consist of both informal constraints (sanctions, taboos, customs, traditions, and codes of conduct), and formal rules (constitutions, laws, property rights). Throughout history, institutions have been devised by human beings to create order and reduce uncertainty in exchange."

"Information costs are reduced by the existence of large numbers of buyers and sellers. Under these conditions, prices embody the same information that would require large search costs by individual buyers and sellers in the absence of an organized market. (footnote 4: The original contributions were those of Hayek (1937 and 1945))."

"Robert Fogel and Douglass North have been awarded this year's Prize in Economics for having renewed research in economic history by applying economic theory and quantitative methods in order to explain economic and institutional change."

"Economists with a historical bent have only just begun to study institutional change and its impact on industrial organization. Douglass C. North has been the innovator here. In his work with he outlined a most useful theory of institutional change and applied it to American economic growth. In his study with Robert Paul Thomas he demonstrated how the changing industrial organization affected the rise of the west. The works of North and his colleagues use this sweeping panorama of history to test, buttress, and refine their theory. They have not yet focused on a detailed analysis of the historical development of any specific economic institution."

"A final aspect of all open access orders is Schumpeter’s notion of creative destruction, one of the most powerful descriptions of a competitive, open access economy. When Schumpeter wrote Capitalism, Socialism, and Democracy in the early 1940s, the economic theory of perfect competition among atomistic firms (i.e., firms too small to have market power) had come under sustained attack as unrealistic. Large and powerful economic organizations dominated the new economy, and their behavior did not match the textbooks. Despite this dominance, the economy produced historically unprecedented, sustained economic development. Schumpeter asked, How could large businesses that were supposed to choke off competition and growth nonetheless generate such spectacular productivity increases in a world that seemed ever more competitive?"

"Schumpeter’s approach has an important implication for political behavior. If the constellation of economic interests regularly changes because of innovation and entry, politicians face a fundamentally different world than those in a natural state: open access orders cannot manipulate interests in the same way as natural states do. Too much behavior and formation of interests take place beyond the state’s control. Politicians in both natural states and open access orders want to create rents. Rent-creation at once rewards their supporters and binds their constituents to support them. Because, however, open access orders enable any citizen to form an organization for a wide variety of purposes, rents created by either the political process or economic innovation attract competitors in the form of new organizations. In Schumpeterian terms, political entrepreneurs put together new organizations to compete for the rents and, in so doing, reduce existing rents and struggle to create new ones. As a result, creative destruction reigns in open access politics just as it does in open access economies. Much of the creation of new interests is beyond the control of the state. The creation of new interests and the generation of new sources of rents occur continuously in open access orders."

"International specialization and division of labor requires institutions and organizations to safeguard property rights across international boundaries so that capital markets as well as other kinds of exchange can take place with credible commitment on the part of the players."

"Specialization in this world is rudimentary and self-sufficiency characterizes most individual households"

"Institutions are the humanly devised constraints that structure political, economic, and social interactions. They consist of both informal constraints (sanctions, taboos, customs, tradition, and code of conduct) and formal rules (constitutions, laws, property rights)."

"Effective institutions raise the benefits of cooperative solutions or the costs of defection, to use game theoretic terms."

"We are far from understanding how to achieve adaptively efficient economies because allocative efficiency and adaptive efficiency may not always be consistent. Allocatively efficient rules would make today's firms and decisions secure - but frequently at the expense of the creative destruction process that Schumpeter had in mind."

"Order in the societies they describe is the result of a dense social network where people have an intimate understanding of each other and the threat of violence is a continuous force for preserving order because of its implications for other members of society."

"The first economic revolution was not a revolution because it shifted man's major economic activity from hunting and gathering to settled agriculture. It was a revolution because the transition created an incentive change for mankind of fundamental proportions. The incentive change stems from the different property rights under the two systems. When common property rights over resources exist, there is little incentive for the acquisition of superior technology and learning. In contrast, exclusive property rights which reward the owners provide a direct incentive to improve efficiency and productivity, or, in more fundamental terms, to acquire more knowledge and new techniques. It is this change in incentive that explains the rapid progress made by mankind in the last 10,000 years in contrast to his slow development during the long era as a primitive hunter/gatherer."

"The national park idea, the best idea we ever had, was inevitable as soon as Americans learned to confront the wild continent not with fear and cupidity but with delight, wonder, and awe."

"Something will have gone out of us as a people if we ever let the remaining wilderness be destroyed; if we permit the last virgin forests to be turned into comic books and plastic cigarette cases; if we drive the few remaining members of the wild species into zoos or to extinction; if we pollute the last clear air and dirty the last clean streams and push our paved roads through the last of the silence, so that never again will Americans be free in their own country from the noise, the exhausts, the stinks of human and automotive waste. And so that never again can we have the chance to see ourselves single, separate, vertical and individual in the world, part of the environment of trees and rocks and soil, brother to the other animals, part of the natural world and competent to belong in it. … We need wilderness preserved — as much of it as is still left, and as many kinds — because it was the challenge against which our character as a people was formed. The reminder and the reassurance that it is still there is good for our spiritual health even if we never once in ten years set foot in it."

"It is a lovely and terrible wilderness, such as wilderness as Christ and the prophets went out into; harshly and beautifully colored, broken and worn until its bones are exposed, its great sky without a smudge of taint from Technocracy, and in hidden corners and pockets under its cliffs the sudden poetry of springs."

"These are some of the things wilderness can do for us. That is the reason we need to put into effect, for its preservation, some other principle that the principles of exploitation or "usefulness" or even recreation. We simply need that wild country available to us, even if we never do more than drive to its edge and look in. For it can be a means of reassuring ourselves of our sanity as creatures, a part of the geography of hope."

"It is a better world with some buffalo left in it, a richer world with some gorgeous canyons unmarred by signboards, hot-dog stands, super highways, or high-tension lines, undrowned by power or irrigation reservoirs. If we preserved as parks only those places that have no economic possibilities, we would have no parks. And in the decades to come, it will not be only the buffalo and the trumpeter swan who need sanctuaries. Our own species is going to need them too. It needs them now."

"It has never been man’s gift to make wildernesses. But he can make deserts, and has."

"There is a sense in which we are all each other's consequences."

"If the national park idea is, as Lord Bryce suggested, the best idea America ever had, wilderness preservation is the highest refinement of that idea."

"If your journal consists of the best moments of your life and reading, then rereading it will be like walking a high mountain trail that goes from peak to peak without the intervening descent into the trough of routine. Just reading such a journal of high points will tighten your strings and raise your pitch."

"Each of these sides of Emerson—The Plotinus and the Montaigne-Bacon—requires the other side. The highest goals or ambitions are inevitably judged by whether or not one can take concrete, measurable steps to reach them, while the practical, workaday side of things is most interesting to Emerson when it serves or leads to something great."

"The truth was that Emerson did not often refer to Scripture (after he announced the text, which was invariably from the Bible) because the Bible was no longer for him an object of study; it was an example for him for emulation. He was interested in his own primary, personal religious experience and that of his parishioners, not in repeating and deferring to the reported religious experiences of long departed historical personages. When he studied, say, the Book of Proverbs, he no longer thought of himself as a commentator, but as the potential author of a similar book."

"To the question "What is God?" he now replies, "the most elevated conception of character that can be formed in the mind. It is the individual's own soul carried out to perfection.""

"Now, as Emerson turned to the active ministry, he tried emphatically to recover the original fervor of a Paul. When he later came to a parting of the ways with the church, he would see himself as a modern Luther. This personal identification with the great is for Emerson at bottom a hunger for a religion by revelation to us—as he would say in Nature—and not just the history of someone else’s religion. He wished to feel Christianity with feelings as strong as Paul’s. He did not wish merely to report Paul’s feeling as though such things were impossible in the modern world."

"If there is a single moment … to give meaning to Emerson's life, it would be this moment when he recognized that his proper response to the world must be astonishment, his proper expression celebration."

"The questions we ask are "What?" and "How?" What are the facts and how are they related? If sometimes, in a moment of absent-mindedness or idle diversion, we ask the question "Why?" the answer escapes us."

"From Carl Becker's Heavenly City of the Eighteenth-Century Philosophers I learned that even the most revolutionary ideas remain closely connected with what the revolutionaries were trying to reject."

"This was what was finished on October 7, 1868- this idea of Cornell University. Seventy-five years later there is nothing we could wish to add to it, or anything we could wish to take away. And it is after all the idea that was then, as it is now, the important thing, since it was and is the source of all the rest. In response to this idea the first crude buildings were erected, the first books and apparatus were collected, and the first faculty was assembled. In response to this idea the first students came to be enrolled. And on this seventy-fifth anniversary we shall do well to remember that it is not the buildings however splendid, or the quadrangles however beautiful, but this idea brought to birth by Ezra Cornell and Andrew Dickson White- the idea of an institution freed from obligation to religious or political or social prejudice, and devoted to the advancement of knowledge in all fruitful fields of inquiry- it was this idea that then have and still gives to Cornell University whatever high significance and enduring value it may have for learning and for the life of man."

"We look about in vain for any semblance of the old authority, the old absolute, for any suitable foothold from which to get a running start."

"From the days of Anne Hutchinson, Boston never lacked clubs; and the Caulkers' Club was the prototype of many, rather more secular and political than religious or transcendental, which flourished in the years preceding the Revolution. John Adams, in that Diary which tells us so much that we wish to know, gives us a peep inside one of these clubs, the "Caucus Club,"… "There they smoke tobacco till you cannot see from one end of the garret to the other. There they drink flip, I suppose, and there they choose a moderator who puts questions to the vote regularly; and selectmen, assessors, collectors, wardens, fire-wards, and representatives are regularly chosen before they are chosen in the town."

"To John Adams he [Samuel] said on one occasion, "he never looked forward in life; never planned, laid a scheme, or formed a design for laying up anything for himself or others after him. This was the truth, inexplicable as it must have seemed to his more provident cousin."

"Samuel Adams had not inherited poverty nor had he, after all, exactly embraced it, but had as it were naturally drifted into it through indifference to worldly gain, the indifference which men of single and fixed purpose have for all irrelevant matters."

"No one, in the year 1770, was better fitted than Samuel Adams, either by talent and temperament or the circumstances of his position, to push the continent into a rebellion. Unlike most of his patriot friends, he had neither private business nor private profession to fall back upon when public affairs grew tame, his only business being, as one might say, the public business, his only profession the definition and defense of popular rights. ...the serious business of a man who during ten years had abandoned all private pursuits and had embraced poverty to become a tribune of the people."

"The duty on British teas was slight. Americans might have paid the duty without increasing the price of their much prized luxury; ministers might have collected the same duty in England to the advantage of the Exchequer. That Britain should have insisted on this peppercorn in acknowledgement of her right, that America should have refused it in vindication of her liberty, may be taken as a high tribute from two eminently practical peoples to the power of abstract ideas."

"Government had not even denied the expediency of taxing America, the total repeal of the Stamp Act and the modification of the Sugar Act having been carried on a consideration of the inexpediency of these particular taxes only. Taxes not open to the same objection might in future be found, and doubtless must be found, inasmuch as the troops were still retained in America and the Quartering Act continued in force there."

"Mr. Soame Jenyns, a writer of verse and member of the Board of Trade... In twenty three very small pages he had disposed of the "Objections to the Taxation of Our American Colonies" in a manner highly satisfactory to himself and doubtless also to the average reading Briton, who understood constitutional questions best when they were "briefly considered," and when they were humorously expounded in pamphlets that could be had for sixpence. ...The heart of the question was the proposition that there should be no taxation without representation; upon which principle it was necessary to observe only that many individuals in England, such as copyholders and leaseholders, and many communities, such as Manchester and Birmingham, were taxed in Parliament without being represented there. "...are they only Englishmen when they solicit protection, but not Englishmen when taxes are required to enable this country to protect them?" As for "liberty," the word had so many meanings, "having within a few years been used as a synonymous term for Blasphemy, Bawdy, Treason, Libels, Strong Beer, and Cyder," that Mr. Jenyns could not presume to say what it meant."

"The average Briton, as well as honorable and right honorable members of the House, had known that England possessed colonies and had understood that colonies, as a matter of course, existed to supply him with sugar and rice, indigo and tobacco, and in return to buy at a good price whatever he might himself wish to sell."

"Scarce a month had elapsed since the law was to have gone into effect before it was clear to the discerning that, for all their professions, most of the "better sort" were not genuine Sons of Liberty at all, but timid sycophants, pliant instruments of despotism, far more intent upon the ruin of Mr. Adams and of America in general than any minister could be shown to be."

"Men of repute, including the staunchest patriots such as Samuel Adams and Jonathan Mayhew, expressed their abhorrence of mobs and of all licentious proceedings in general; but many were nevertheless disposed to think, with good Deacon Tudor, that in this particular instance "the universal Obhorrance of the Stamp Act was the cause of the Mob's riseing." It would be well to punish the mob, but punishing the mob would not cure the evil which was the cause of the mob..."

"During the summer of 1765 the happy phrase of Isaac Barré—"these sons of liberty"—was everywhere repeated, and was put on as a kind of protective coloring by strong patriots, who henceforth thought of themselves as Sons of Liberty and no traitors at all. Rather were they traitors who would in any way justify an act of tyranny; most of all those so-called Americans, accepting the office of Stamp Master, who cunningly aspired to make a farthing profit out of the hateful business of enslaving their own countrymen."

"If Americans were not always aware that they were rich men individually, they were at all events well instructed, by old-world visitors who came to observe them with a certain air of condescension, that collectively at least their material prosperity was a thing to be envied even by more advanced and more civilized peoples. Therefore any man called upon to pay a penny tax and finding his pocket bare might take a decent pride in the fact, which none need doubt since foreigners like Peter Kalm found it so, that "the English colonies in this part of the world have increased so much in ...their riches, that they almost vie with old England.""

"A million and a half of people spread over the Atlantic seaboard might be thought no great number; but it was a new thing in the world. ...which had in fact been carefully noted by Benjamin Franklin in a pamphlet on The Increase of Mankind, Peopling of Countries, etc.—that within three-quarters of a century the population of the continental colonies had doubled every twenty-five years, whereas the population of Old England during a hundred years past had not doubled once and now stood at only some six and a half millions. ...With these facts in mind, one might indeed say that a people with so much vitality and expansive power was abundantly able to pay taxes; but perhaps it was also a fair inference, if any one was disposed to press the matter, that unless it was so minded, such a people was already, or assuredly soon would be, equally able not to pay them."

"Virginia was in fact a landowning aristocracy, without nobility or merchant class, or any considerable small peasant farming class; and the other Southern colonies, except North Carolina, were on the whole similar to Virginia in these respects."

"June 7, 1776, Richard Henry Lee, on behalf of the Virginia delegation, submitted to the Continental Congress three resolutions, of which the first declared that "these United Colonies are, and of right ought to be, free and independent States, that they are absolved from all allegiance to the British Crown, and that all political connection between them and the State of Great Britain is, and ought to be, totally dissolved. This resolution, which may conveniently be called the Resolution of Independence, was finally voted by the Continental Congress on the 2 of July, 1776. Strictly speaking, this was the official declaration of independence; and if we were a nation of antiquaries we should no doubt find an incongruity in celebrating the anniversary of our independence on the 4 of July."

"Three days after Richard Henry Lee introduced the Resolution of Independence, it was voted to appoint a committee to "prepare a declaration to the effect of the said first resolution." The committee, appointed on the following day, consisted of Thomas Jefferson, John Adams, Benjamin Franklin, Roger Sherman, and Robert R. Livingston. On the 28 of June, the committee reported to Congress the draft of a declaration which, with modifications, was finally agreed to by Congress on the 4 of July. This is the document which is popularly known as the Declaration of Independence."