The Early History of Economics in the United States: The Influence of the German Historical School of Economics on Teaching and Theory

The German Historical School of Economics (GHSE) played a crucial role in the development of economics in the US in the late 19th and early 20th centuries. It inspired many Americans to pursue advanced education in political economy in Germany, and upon their return, they challenged the dominant status of classical orthodoxy and revolutionized the discipline. The GHSE's ideas, methods, and approaches were imported into the US, leading to the establishment of the first dedicated political economy departments, graduate programs, and chairs at American universities and colleges. However, the current mainstream in economics has eliminated many of the features that were once important to the discipline, limiting contemporary economics to a small fraction of the complex organism defined by the GHSE.

Format: Hardback
Length: 258 pages
Publication date: 24 October 2022
Publisher: Taylor & Francis Ltd

Since the latter half of the 20th century, the economics departments of American universities have gained international recognition for offering competitive and advanced levels of education. However, from the 1870s until the beginning of World War I, German universities held supremacy in terms of teaching quality, the enrollment of foreign students, and scholarly publications. This book explores the role of the German Historical School of Economics (GHSE) in the development of economics in the United States during this period.

The chapters reveal that, prior to the influence of the GHSE, political economy in the US was in a dismal state, both as a profession and an academic discipline. As a result, many Americans chose to pursue advanced education in political economy in Germany, inspired by the unmatched international reputations of theorists associated with the GHSE. Upon returning home, these German-trained Americans challenged the dominant status of classical orthodoxy and revolutionized the discipline of economics in the US by importing the ideas, methods, and approaches of the GHSE. In doing so, they established the first dedicated political economy departments, graduate programs, and chairs at American universities and colleges. While the precise magnitude and value of the influence of the GHSE are difficult to quantify, it is evident that Americans owe a significant debt to this school of thought for its contributions to the early development of economics in the United States.

The chapters also examine what has been lost since: the current mainstream in economics has eliminated many of the features that were once essential to the discipline, effectively limiting contemporary economics to a small fraction. This loss has significant implications for understanding the broader economic landscape and addressing the challenges facing society today.

Weight: 653g
Dimension: 234 x 156 (mm)
ISBN-13: 9781032162409