We have woven together three strands of U.S. economic history in Economics 125: economic growth, development of infrastructure, and inequities in economic treatment. Sometimes these three strands came together in one tale.
-For example, the removal of Native Americans from the land, the financial and governmental institutions that enabled increases in land ownership, and the role of increased land and land productivity in contributing to economic growth. (can’t use this one)–
We have also discussed inequities in the context of slavery, discrimination, and distribution of income and wealth.
Economic historians — and hopefully now you, too — believe that studying history can provide new perspectives on recent economic patterns and on the potential for further economic growth and development in the 21st century.
In this essay, you will:
FIRST, come up with a great introduction that is inviting and has a very strong thesis statement (should be specific without detail, contain EVERYTHING you are going to talk about in your paper, AND gives a preview of the order of topics in your paper).
Then, present and explain the aggregate production function (Cobb- Douglas production function of the form 𝑌 = 𝐴 ∗ 𝐾𝛼 ∗ (𝐿 ∗ 𝐻)1−𝛼, where Y is real GDP, K is the physical capital stock, L represents labor, H is human capital, and A represents
technology and natural resources. We assume α=1/3, that can be used to discuss issues
of growth in contemporary and historical contexts. Show the relationship between output per
capita (Y/L) and its determining factors. Highlight the theoretical sources of growth.
Discuss the role for development of infrastructure.
Next, illustrate the three strands of economic history (growth, infrastructure, inequities). Choose two examples — two illustrating growth, two illustrating development, and two illustrating inequities — with one of the two examples in each strand being in one of three time periods: pre-1860, 1860-1940, and 1940-2020, and the second one of a different one of the time periods (giving a total of six).
For each example, describe the historical event/episode. How does it illustrate economic growth, development, or inequities in economic history? What happened? Why? How? What was the impact? The determinants? Provide any relevant economic analysis.
The more specific and complete your examples, the more coherent your writing, and the more appropriate your examples to a discussion of American economic history, the better your grade.
Conclude your essay by pointing to the future. As we enter the 21st century, what is the potential for further economic growth? What are the likely sources of and impact of further infrastructure development? What is the potential for future inequities?
Goals of this Essay:
Demonstrate understanding of the inequalities present at the time of the roaring twenties and the great depression of the 1930s.
Do you understand how the inequities came about from the economic point of view?
Demonstrate understanding of the different effects of inequities across the economic class spectrum.
Do you understand how the inequalities affected different economic classes of society?
Demonstrate understanding of the issues and topics enough to form (economic) rational opinion about the lessons learned (or not) from the past
Do you understand how to apply the concepts learned from the data and outcomes of past experiences and extrapolate those to more current examples?
Sample Solution