Economic Forces In American History

The multi-perspective approach to historical scholarship requires viewing events, trends, and developments through a variety of analytical lenses.  Often overlooked in traditional history curricula are the insights that the economic way of thinking adds to social, political, and geographic perspectives.  Emphasizing the role of institutions, Economic Forces In American History (EFIAH) looks at the impact of seven key forces in shaping the development of the United States.

Lessons are designed to supplement high school history curricula.  Outlines provide background information, examples, and explanations for teachers to draw from in creating lessons or providing direct instruction to students, and applicable history and economics content standards are identified.  Interactive simulations and exercises are classroom-ready; files include step-by-step procedures, student materials, and teacher guides with suggested answers. All lessons are freely copyable and may be edited for classroom use.

Lesson Outline:

Lesson 1: The Market for Moving People to America

• Key Terms and Concepts: Scarcity; Opportunity Cost; Incentives; Labor Markets; Supply and Demand; Wage Determination; Expected Benefits v. Expected Costs

Lesson 2: Births, Deaths, and Economic Growth 

• Key Terms and Concepts: Economic Growth; Supply and Demand; Land/Labor Ratio; Scarcity; Marginal Benefit and Marginal Cost; Household Decision-making

Lesson 3: The Constitution as an Economic Document

• Key Terms and Concepts: Scarcity; Opportunity Cost; Incentive; Gains from Trade; Markets; Property Rights; Expected Benefits v. Expected Costs; Collective Goods; Inflation

Lesson 4: Innovation, Education, and Information

• Key Terms and Concepts: Incentives; Expected Benefit and Expected Cost; Supply and Demand; Productivity; Extensive v. Intensive Growth; Investment

Lesson 5: Land Ordinances and Western Movement

• Key Terms and Concepts: Incentives; Expected Benefit and Expected Cost; Supply and Demand; Productivity; Extensive v. Intensive Growth; Investment

Lesson 6: The Transportation Revolution and Formation of the National Economy 

• Key Terms and Concepts: Scarcity; Opportunity Cost; Markets; Voluntary Trade Creates Wealth; Supply and Demand; Expected Benefits v. Expected Costs

Lesson 7a: Banking and Bank Regulation

• Key Terms and Concepts: Financial Intermediation; Commercial Bank; Fractional Reserve Banking; Money, the Money Supply, and Money Creation; Inflation (Deflation), Financial Crisis; Supply and Demand

Lesson 7b: Money and Monetary Policy

• Key Terms and Concepts: Financial Intermediation; Money, the Money Supply, and Money Creation; Fiat Money; Central Bank; Inflation (Deflation); Rules v. Discretionary Monetary Policy; Fixed v. Floating Exchange Rates; Supply and Demand

Lesson 8: The Political Economy of Emancipation

• Key Terms and Concepts: Scarcity; Opportunity Cost; Incentives; Labor Markets; Supply and Demand; Expected Benefit v. Expected Costs

Lesson 9: Entrepreneurship and Innovation

• Key Terms and Concepts: Scarcity; Opportunity Cost; Incentives; Labor Markets; Supply and Demand; Expected Benefits v. Expected Costs; Monopoly; Economies of Scale; Risk and Uncertainty; Profit 

Lesson 10: The Great Depression

• Key Terms and Concepts: Business Cycle; Financial Crisis; Inflation and Deflation; Real Interest Rate; Supply and Demand 

Lesson 11: The New Deal

• Key Terms and Concepts: Scarcity; Opportunity Cost; Incentives; Supply and Demand; Expected Benefits v. Expected Costs; Inflation and Deflation; Cartels; Price Floors; Subsidies

Lesson 12: Wars and the Economy

• Key Terms and Concepts: Utility; Final Good; Intermediate Good; Gross Domestic Product (GDP); GDP(Y) = Consumption(C) + Investment(I) + Government Spending (G) + (Exports(X) – Imports(Im))

Lesson 13: Immigrants and the American Workforce

• Key Terms and Concepts: Scarcity; Opportunity Cost; Incentives; Labor Markets; Supply and Demand; Expected Benefits v. Expected Costs; Business Cycles; Substitutes; Complements

Lesson 14: The Rise of Big Government

• Key Terms and Concepts: Taxes; Regulations; Externalities; Rent Seeking; Special Interest Groups

Lesson 15: Protectionism vs. Globalization

• Key Terms and Concepts: Opportunity Cost; Comparative Advantage; Absolute Advantage; Factor Endowments; Tariffs; Quotas; Protectionism; Embargo; Mercantilism; Infant-industry Argument; Globalization

Activity Outline

Activity 1: Property Rights and U.S. History:  Jamestown Simulation

Activity 2: Indentured Servitude:  A Colonial Market for Labor

Activity 3: Transaction Costs and Currency:  1808 Road Trip

Activity 4: Oklahoma Land Rush:  Property Rights on the American Frontier

Activity 5: A Question of Trust

Activity 6: Show Me the Money!  A Fractional Reserve Banking Simulation

Activity 7: The Great Depression:  A Family’s Choices

Activity 8: Women and Work in American History:  The Opportunity Cost of Staying Home