American Economic History

 
 
  The U.S. Economy:
      A Brief
    History
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|The modern American economy traces its roots to the quest of European settlers for economic gain in the 16th, 17th, and 18th       |
|centuries. The New World then progressed from a marginally successful colonial economy to a small, independent farming economy and,|
|eventually, to a highly complex industrial economy. During this evolution, the United States developed ever more complex           |
|institutions to match its growth. And while government involvement in the economy has been a consistent theme, the extent of that   |
|involvement generally has increased.                                                                                               |
|     North America's first inhabitants were Native Americans -- indigenous peoples who are believed to have traveled to America     |
|about 20,000 years earlier across a land bridge from Asia, where the Bering Strait is today. (They were mistakenly called "Indians"|
|by European explorers, who thought they had reached India when first landing in the Americas.) These native peoples were organized |
|in tribes and, in some cases, confederations of tribes. While they traded among themselves, they had little contact with peoples on|
|other continents, even with other native peoples in South America, before European settlers began arriving. What economic systems   |
|they did develop were destroyed by the Europeans who settled their lands.                                                           |
|     Vikings were the first Europeans to "discover" America. But the event, which occurred around the year 1000, went largely       |
|unnoticed; at the time, most of European society was still firmly based on agriculture and land ownership. Commerce had not yet     |
|assumed the importance that would provide an impetus to the further exploration and settlement of North America.                   |
|     In 1492, Christopher Columbus, an...