ECONOMICS 360 HISTORY OF THE AMERICAN ECONOMY

Dr. Ray Cohn
Spring 2001
ECONOMICS 360
HISTORY OF THE AMERICAN ECONOMY
OFFICE: Stevenson 428
OFFICE HOURS: Mon,Weds: 3:00-4:00; Tues: 10:00-12:00; or When Available
PHONE: 438-7892
E-MAIL: rlcohn@ilstu.edu
Course Prerequisite: 6 hours of 200-level Economics

COURSE DESCRIPTION
Economics 360 is a course in economic history concerned with the long-run
development of the economy of the United States. The course is concerned with analyzing
economic growth and various problems, situations, and controversies that have occurred over
time in the U.S. economy. For example, how fast has the U.S. economy grown over time and
how have workers been affected? Why has the agricultural sector declined so much? How is
government more important now than historically; and why and in what ways? Why has the
American banking system developed differently from that in other countries? These are a few of
the questions that we analyze during the course of this class.
I consider this course to be an applied economic theory course; it is an economics course
concerned with history and not a history course concerned with economics. This means that the
historical problems, etc., are analyzed using economic theory.

COURSE ORGANIZATION
The course is divided into four parts. The course begins with a brief history of U.S.
economic growth; the rest of the course examines the development of the American economy
using a chronological approach.
1. The first section is the shortest of the sections. The theory of economic growth is
discussed and a broad overview is provided of the course of growth in the U.S. since the
colonial period. We examine the factors that lead to economic growth in general and the
importance of the factors to long-run growth in the United States.
2. The second section discusses the U.S. economy up to the outbreak of the Civil War in
1861. The factors that constrained and led to growth as a colony and an independent
nation are examined. The effects of British colonial policy and the new American
government are investigated. Finally, events in the various economic sectors -
agriculture (including the slave economy), transportation, manufacturing, and banking -
are discussed during both the colonial and antebellum time periods.
3. The third section discusses the period from 1861 to 1933. We first investigate the effect
of the Civil War on long-run growth in the North and the South. Then, economic
developments in the various sectors are examined - particularly the rise of large firms in

manufacturing and transportation. Immigration, urbanization, and the growth of federal
regulation are also investigated. The section ends with a discussion of events from the
outbreak of World War I to the causes of the Great Depression of 1929 to 1933.
4. The fourth section discusses the period since 1933. The "recovery" from the Great
Depression and the effects of the New Deal policies are investigated. The consequences
of World War II are examined, as are macroeconomic developments since then, in
particular economic growth and business cycles. Various trends over the 20th century
are discussed, such as the continuation of agricultural problems, the increasing
importance of science, the rise of the service sector, changes in the labor force, and the
changing role of government in the economy.
The COURSE OUTLINE below provides a more complete idea of the topics covered in
the course.

TEXTS
1. Gary M. Walton and Hugh Rockoff, History of the American Economy, Eighth Edition.
2. Also, a required Packet of readings is available at PIP in the Student Union. It is Packet
#72.

GRADES
Semester grades are determined based on your performance on a variety of tasks. The
breakdown is as follows:
Task Points Percent of Grade
Exam 1 35 6%
Exam 2 100 17%
Exam 3 100 17%
Exam 4 100 17%
Class Project 200 33%
All Homework 65 11%
TOTAL POINTS 600
Grades are based completely on the work listed above. NO extra credit work is given
under any circumstances.
My cutoff for an "A" is 501 points; for a "B," 436 points; for a "C," 369 points; for a
"D," 313 points. For your convenience, current point totals and scales will be posted by the last
four digits of your social security number on a regular basis.
EXAMS
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One short and three hourly exams are given; the last hourly exam is given during the
final exam period. The short exam covers the material in Section 1; the other exams cover the
material in Sections 2, 3, and 4. None of the tests are comprehensive.
The exam format is short essay. The questions come from the lectures and the reading.
You are forewarned that we may not have time to cover all the reading in class; you are
responsible, however, for the reading listed in the Course Outline for each exam.
Make-up exams won't be given. If, for some reason, you can't take the exam on the day
and at the time scheduled, see me before the exam and other arrangements will be made.
Students who don't take an exam and don't see me until after it is over may receive a zero on it.

CLASS PROJECT
The Class Project consists of a paper completed by you (and graded by me) in four
stages; it is worth 200 points, one-third of your semester grade. The paper is centered on two or
three articles or chapters on a particular topic. A Topic List (and starting articles) is provided by
your instructor, though if you have an interest in a particular topic and wish to do your paper on
it, please discuss your ideas with me. While the Class Project Assignment contains complete
instructions concerning the project, I note here that the completed paper should be about 13-15
pages. Graduate students are expected to write a longer and more intensive paper. YOU MUST
SIGN UP FOR A TOPIC BY FRIDAY, JANUARY 26.
For the first stage, you are expected to write a 3-4 page review of one of the articles
listed for your topic. The due date for this part is Friday, February 9 and it is worth 40 points.
The second stage involves writing a 4-5 page prospectus telling me what your completed paper
is going to say. This stage is due the Thursday before Spring Break and is also worth 40 points.
The third stage involves the writing of the entire paper. The due date for this part is Tuesday,
April 10 and it is worth 60 points. For the last stage, you revise your paper on the basis of my
comments. The due date for this part is Friday, May 4 and it is worth 60 points.
Complete instructions for the Project are given in the Class Project Assignment.
HOMEWORK
Homework Problems are distributed at various times during the course of the semester.
The purpose of these problems is to get you to (a) review basic economic concepts outside of the
classroom, and (b) consider how to use economics to analyze historical problems.
ECON 300 STUDENTS
Anyone in the class also taking Econ 300 (the one-hour capstone course) in conjunction
with this course should briefly see me after class to set up a time to discuss the additional
requirements.

ADDITIONAL ADVICE AND ASSISTANCE
1. Attendance is particularly important in this class. Most economic history textbooks do
not include much explicit economics. The text we use includes economics more than
others; however, explicitly explaining the economics is one of the main purposes of the
class sessions. Exams mainly test your understanding of the economics used as it applies
to the history.
2. Since much of the economics is done in class, reading the assigned material before class is
important. Doing so will provide you background material and enhance your
understanding of what we do in class.
3. At the top of the syllabus, I have listed office hours when I will be in my office except in
cases of emergencies. If you need to see me other times, please call or just stop by. I
will be happy to help you unless I am working on something with a critical deadline.
Please make use of this open-door policy.
4. At the start of each section, I will distribute three pieces of information that will assist
you in understanding the course material. The first is a Lecture Outline that provides an
outline of all the material in that section of the class. The second is a Study Objectives
sheet that gives a list of concepts and ideas that you should know for each exam. The
third is a list of Important Dates that summarizes when various events occurred that we
discuss in class.

CONTACTING ME BY E-MAIL
You are encouraged to contact me with questions about the class or just general
conversation at my e-mail address given on the first page. Just remember that it may take a
little bit of time for you to receive a reply from me, so don't use e-mail to ask questions for
which you need a quick answer.

IMPORTANT DATES
Jan. 26 (Fri) - Project Sign-up Deadline is 3:00 P.M.
Jan. 29 (Mon) - Homework #1 Due In Class
Jan. 31 (Wed) - Exam #1
Feb. 9 (Fri) - Article Review Due by 3:00 P.M.
Feb. 16 (Fri) - Last Day to Drop Any Class
Feb. 19 (Mon) - Homework #2 Due In Class
Feb. 26 (Mon) - Exam #2
Mar. 8 (Thur) - Paper Prospectus Due by 4:00 P.M.
Mar. 21 (Wed) - Homework #3 Due In Class
Apr. 4 (Wed) - Exam #3
Apr. 10 (Tues) - Completed Paper Due by 4:00 P.M.
Apr. 23 (Mon) - Homework #4 Due In Class
May 4 (Fri) - Revised Paper Due by 3:00 P.M.
May 8 (Tues) - Exam #4 (Final Exam Period - Exam at 8:15 A.M.)
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COURSE OUTLINE (** = Date Homework is Due)
NOTE: All "Packet" readings are from the PIP packet, while all "Chapter" readings are from the
textbook.
CLASS DAY TOPIC READING
SECTION 1: U.S. ECONOMIC GROWTH
Jan. 17 Measuring Economic Growth Packet (1-8), Ch. 1(1-8)
Jan. 22 Theory of Economic Growth Ch. 1(8-17), Packet (8-27)
Jan. 24 Long Run U.S. Growth Packet (27-38)
**** PROJECT SIGN-UP REQUIRED BY 3:00 P.M. on FRI., JAN. 26 ****
SECTION 2: THE U.S. ECONOMY TO 1861
Jan. 29 - ** The Colonies: Settlement & Population Chs. 2(27-44)
Jan. 31 (WED) EXAM #1;
Colonial Economic Activities Chs. 3(49-65), 5
Feb. 5 British Colonial Policy; U.S. Constitution Chs. 6, 7(139-146)
Feb. 7 Transportation Changes Chs. 7(146-150), 9(183-
200)
**** ARTICLE REVIEW DUE BY 3:00 P.M. on FRIDAY, FEB. 9 ****
Feb. 12 The Westward Movement Ch. 9(202-203,204-206),
and Agriculture Chs. 8(167-178), 12(257-
260)
Feb. 14 Antebellum Manufacturing, Chs. 12(260-261), 10(211-227),
Labor, and Banking Ch. 11(235-236,240-249)
Feb. 19 - ** The Slave Economy Ch. 13(279-292)
Feb. 21 The Slave System Packet (39-55), Ch. 13(292-298)
Feb. 26 (MON) EXAM #2
SECTION 3: THE U.S. ECONOMY: 1861 TO 1933
Feb. 28 Effects of Civil War Ch. 14(303-315,317-324)
March 5 Postbellum Agriculture and Railroads Chs. 15(327-342), 16(351-356)

March 7 Railroad Regulation; Ch. 16(357-367),
Manufacturing Growth Ch. 17(373-386)
**** PAPER PROSPECTUS DUE BY 4:00 P.M. on THURSDAY, MARCH 8 ****
March 12-16 SPRING BREAK
March 19 Manufacturing Regulation Chs. 17(386-395), 20(448-
449),
and Wealth Packet(56), Ch. 19(438-440)
March 21 - ** Incomes of Workers; Chs. 18(402-412), 19(421-
438)
Money and Banking
March 26 Federal Reserve System; The 1920s Chs. 19(440-443), 22
March 28 The Great Depression Ch. 23(515-529)
April 2 Causes of the Depression Ch. 23(529-530)
April 4 (WED) EXAM #3
SECTION 4: THE U.S. ECONOMY SINCE 1933
April 9 The "Economic Recovery" Ch. 24
and the New Deal
**** COMPLETED PAPER DUE BY 4:00 P.M. on TUESDAY, APRIL 10 ****
April 11 1937 Recession; World War II Chs. 23(530-538), 25
April 16 Growth of the Federal Government Ch. 26
April 18 Transportation Ch. 27(625-635)
April 23 - ** Postwar Agriculture and Manufacturing Chs. 27(613-621), 29(669-681)
April 25 The Service Sector and Chs. 29(681-689), 30
Labor Force Changes
April 30 Business Cycles Since 1950 Ch. 28(641-663)
May 2 Postwar Banking; Ch. 28(663-666),
Economic Growth Since 1900 Ch. 31, Packet(57-85)
**** REVISED PAPER DUE BY 3:00 P.M. on FRIDAY, MAY 4 ****
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TUESDAY, May 8 - 8:15 a.m.: FINAL EXAM PERIOD EXAM #4
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