Financial Crises in American History

U.S. history is full of frequent and often devastating financial crises. They have coincided with business cycle downturns, but they have been rooted in the political design of markets. Financial crises have also drawn from changes in the underpinning cultures, knowledge systems, and ideologies of marketplace transactions. The United States’ political and economic development spawned, guided, and modified general factors in crisis causation. Broadly viewed, the reasons for financial crises have been recurrent in their form but historically specific in their configuration: causation has always revolved around relatively sudden reversals of investor perceptions of commercial growth, stock market gains, monetary availability, currency stability, and political predictability. The United States’ 19th-century financial crises, which happened in rapid succession, are best described as disturbances tied to market making, nation building, and empire creation. Ongoing changes in America’s financial system aided rapid national growth through the efficient distribution of credit to a spatially and organizationally changing economy. But complex political processes—whether Western expansion, the development of incorporation laws, or the nation’s foreign relations—also underlay the easy availability of credit. The relationship between systemic instability and ideas and ideals of economic growth, politically enacted, was then mirrored in the 19th century. Following the “Golden Age” of crash-free capitalism in the two decades after the Second World War, the recurrence of financial crises in American history coincided with the dominance of the market in statecraft. Banking and other crises were a product of political economy. The Global Financial Crisis of 2007–2008 not only once again changed the regulatory environment in an attempt to correct past mistakes, but also considerably broadened the discursive situation of financial crises as academic topics.

Anne Hutchinson

Anne Hutchinson engaged a diverse group of powerful men as well as the disenfranchised during the mid-1630s in Boston’s so-called Antinomian Controversy, the name given to the theological battle between John Cotton, who emphasized free grace, and other clerics who focused upon preparation for those seeking salvation. Hutchinson followed Cotton’s position, presented his theology in meetings in her home, and inspired her followers, male and female, to reject pastors opposing Cotton’s position. Hutchinson’s followers included leading men who opposed John Winthrop’s leadership of Massachusetts Bay Colony; this dispute also became an arena where Winthrop reasserted his power. Hutchinson represents the Puritans’ drive for spiritual development within, including her claim of revelation. She is best understood within a transatlantic framework illustrating both the tools of patriarchal oppression and, more importantly, the appeal of Puritan spirituality for women.

Free Civil Legal Assistance in the United States, 1863–1980

Legal aid organizations were first created by a variety of private groups during the Civil War to provide legal advice in civil cases to the poor. The growing need for legal aid was deeply connected to industrialization, urbanization, and immigration. A variety of groups created legal aid organizations in response to labor unrest, the increasing number of women in the workforce, the founding of women’s clubs, and the slow and incomplete professionalization of the legal bar. In fact, before women could practice law, or were accepted into the legal profession, a variety of middle-class women’s groups using lay lawyers provided legal aid to poor women. Yet, this rich story of women’s work was later suppressed by leaders of the bar attempting to claim credit for legal aid, assert a monopoly over the practice of law, and professionalize legal assistance. Across time, the largest number of claims brought to legal aid providers involved workers trying to collect wages, domestic relations cases, and landlord tenant issues. Until the 1960s, legal aid organizations were largely financed through private donations and philanthropic organizations. After the 1960s, the federal government provided funding to support legal aid, creating significant controversy among lawyers, legal aid providers, and activists as to what types of cases legal aid organizations could take, what services could be provided, and who was eligible. Unlike in many other countries or in criminal cases, in the United States there is no constitutional right to have free counsel in civil cases. This leaves many poor and working-class people without legal advice or access to justice. Organizations providing free civil legal services to the poor are ubiquitous across the United States. They are so much part of the modern legal landscape that it is surprising that little historical scholarship exists on such organizations. Yet the history of organized legal aid, which began during the Civil War, is a rich story that brings into view a unique range of historical actors including women’s organizations, lawyers, social workers, community organizations, the state and federal government, and the millions of poor clients who over the last century and a half have sought legal assistance. This history of the development of legal aid is also very much a story about gender, race, professionalization, the development of the welfare state, and ultimately its slow dismantlement. In other words, the history of legal aid provides a window into the larger history of the United States while producing its own series of historical tensions, ironies, and contradictions. Although this narrative demonstrates change over time and various ruptures with the past, there are also important continuities in the history of free legal aid. Deceptively simple questions have plagued legal aid for almost a century and have also driven much of the historical scholarship on legal aid. These include: who should provide legal aid services, who should receive free legal aid, what types of cases should legal aid organizations handle, who should fund legal aid, and who benefits from legal aid.

The American Labor Movement and the Establishment of Israel

A remarkably large number of nonstate actors played important and often unheralded roles in the creation of the state of Israel. The American labor movement was one such actor, assisting the Jewish community in Palestine to develop a political and social infrastructure in the “Yishuv” years before statehood, and then continuing to do so afterward. This movement, consisting of various labor federations, unions, and fraternal orders, aided the Zionist cause through a unique combination of financial and political resources. American labor organizations, especially those in the Jewish labor movement, helped lay the groundwork for the formation of a Jewish state by nurturing a labor movement in Palestine and influencing the US policymaking apparatus. They aided this process through land purchases for Jewish worker cooperatives in Palestine, the construction of trade schools and cultural centers there, and massive economic aid to the Histadrut, the General Federation of Jewish Workers in Palestine. American labor organizations also lobbied congressional allies, the White House, and local officials to generate policies assisting the Yishuv. They even pressured the British government during its mandate over Palestine and lobbied United Nations (UN) member states to vote for the partition of Palestine in 1947 and Israel’s recognition in 1948. Jewish labor leadership within the American garment industry played the key role in mobilizing the larger labor movement to support a Jewish state. Initially, however, most Jewish labor leaders did not support this effort because many descended from the “Bund” or General Jewish Workers’ Union of Lithuania, Poland, and Russia, a Jewish socialist party founded in 1897. Like any other nationalist movement, Bundists viewed Zionism as a diversion of the labor movement’s fight against capitalism. Instead, Bundists emphasized Jewish culture as a vehicle to spread socialism to the Jewish masses. Yet, in time, two practical concerns developed that would move Bundists to embrace assistance to the Yishuv and, ultimately, to the state of Israel. First, finding Jewish refugees a haven from persecution and, second, a commitment to assisting a burgeoning trade union movement in Palestine.

Turkey-United States Relations

Since the 1780s, the geographical, historical, cultural, and ideational chasm between Turkey and the United States has remained wide. The presence of US merchants, missionaries, and educators in Ottoman territories, the immigration of hundreds of thousands of Ottoman subjects to the United States, the tens of thousands of US military personnel stationed in Turkey during the Cold War, and the thousands of Turkish citizens who continue to attend US universities every year have not been able to bridge that gap. Aside from the cultural and geographical gap, much of the disconnect between Turkey and the United States came from Turkish and American leaders’ ignorance of the other side. From the 19th century onward, Ottoman and Turkish leaders hoped to use the United States as a counterweight in Europe’s great power games despite Washington’s lack of interest in such an outlook until 1945. Likewise, most US administrations after 1945 thought that Turkey’s national interests could be easily reconciled with US global security priorities.

Mapp v. Ohio, the Exclusionary Rule, and Constitutional Judicial Review

Mapp v. Ohio is the US Supreme Court opinion that imposed the Fourth Amendment exclusionary rule on the states. Mapp overruled earlier cases by holding that evidence obtained by unreasonable government searches and seizures was not admissible in state or local criminal prosecutions, just as it had long been inadmissible in federal cases. It is hard to overstate the impact of this decision, which changed the rules and procedures both for policing and for litigation in criminal cases throughout the United States. But Mapp’s significance extends beyond its specific holding. It adopted an interpretive method, often labeled “selective incorporation,” employed by the Supreme Court in subsequent decisions, that imposed specific provisions contained in the Bill of Rights, the first eight amendments to the Constitution upon the states. These decisions redefined federalism in the United States by establishing federal authority over government actions previously governed by state law. In the realm of search and seizure law, by requiring states to adhere to the Supreme Court’s search and seizure opinions, Mapp also generated potent political and legal opposition. In subsequent opinions the Supreme Court limited the exclusionary rule’s scope, diluting Mapp’s impact on police practices by reducing the situations in which federal constitutional rules required exclusion of evidence.

The Information Economy

The term “information economy” first came into widespread usage during the 1960s and 1970s to identify a major transformation in the postwar American economy in which manufacturing had been eclipsed by the production and management of information. However, the information economy first identified in the mid-20th century was one of many information economies that have been central to American industrialization, business, and capitalism for over two centuries. The emergence of information economies can be understood in two ways: as a continuous process in which information itself became a commodity, as well as an uneven and contested—not inevitable—process in which economic life became dependent on various forms of information. The production, circulation, and commodification of information has historically been essential to the growth of American capitalism and to creating and perpetuating—and at times resisting—structural racial, gender, and class inequities in American economy and society. Yet information economies, while uneven and contested, also became more bureaucratized, quantified, and commodified from the 18th century to the 21st century. The history of information economies in the United States is also characterized by the importance of systems, networks, and infrastructures that link people, information, capital, commodities, markets, bureaucracies, technologies, ideas, expertise, laws, and ideologies. The materiality of information economies is historically inextricable from production of knowledge about the economy, and the concepts of “information” and “economy” are themselves historical constructs that change over time. The history of information economies is not a teleological story of progress in which increasing bureaucratic rationality, efficiency, predictability, and profit inevitably led to the 21st-century age of Big Data. Nor is it a singular story of a single, coherent, uniform information economy. The creation of multiple information economies—at different scales in different regions—was a contingent, contested, often inequitable process that did not automatically democratize access to objective information.

Black Soldiers in World War II America

The history of the African American military experience in World War II tends to revolve around two central questions: How did World War II and American racism shape the black experience in the American military? And how did black GIs reshape the parameters of their wartime experiences? From the mid-1920s through the Great Depression years of the 1930s, military planners evaluated the performance of black soldiers in World War I while trying to ascertain their presence in future wars. However, quite often their discussions about African American servicemen in the military establishment were deeply moored in the traditions, customs, and practices of American racism, racist stereotypes, and innuendo. Simultaneously, African American leaders and their allies waged a relentless battle to secure the future presence of the uniformed men and women who would serve in the nation’s military. Through their exercise of voting rights, threats of protest demonstration, litigation, and White House lobbying from 1939 through 1942, civil rights advocates and their affiliates managed to obtain some minor concessions from the military establishment. But the military’s stubborn adherence to a policy barring black and white soldiers from serving in the same units continued through the rest of the war. Between 1943 and 1945, black GIs faced white officer hostility, civilian antagonism, and military police brutality while undergoing military training throughout the country. Similarly, African American servicewomen faced systemic racism and sexism in the military during the period. Throughout various stages of the American war effort, black civil rights groups, the press, and their allies mounted the opening salvoes in the battle to protect and defend the wellbeing of black soldiers in uniform. While serving on the battlefields of World War II, fighting African American GIs became foot soldiers in the wider struggles against tyranny abroad. After returning home in 1945, black World War II-era activists such as Daisy Lampkin and Ruby Hurley, and ex-servicemen and women, laid the groundwork for the Civil Rights Movement.

Black Song, Dance, and Theater in pre-World War I New York City

Between 1896 and 1915, Black professional entertainers transformed New York City’s most established culture industries—musical theater and popular song publishing—and helped create two new ones: social dancing and music recording. While Black culture workers’ full impact on popular entertainment and Black modernism would not be felt until after World War I, the Harlem Renaissance and the Jazz Age were decades in the making. Stage performers Williams and Walker and their musical director Will Marion Cook introduced full-scale Black musical theater to Broadway between 1902 and 1909; songwriters-turned-performers Cole and Johnson expanded the style and substance of ragtime songs along Tin Pan Alley; James Reese Europe created a labor union for Black musicians that got hundreds of players out of Black nightclubs into high-paying White elites’ homes, eventually bringing a 200-person all-Black symphony orchestra to Carnegie Hall for the first concert of its kind at the august performance space. James Europe’s Clef Club Inc. also caught the ears of Manhattan’s leading social dancers, the White Irene and Vernon Castle, in ways that helped disseminate Europe’s ragtime dance bands across America and, by 1913, became the first Black band to record phonographs, setting important precedents for the hit jazz and blues records of the postwar era. While James Europe would go on to win renown as the musical director of the Harlem Hell Fighters—the most-decorated infantry unit to fight in World War I—his prewar community of professional entertainers had already successfully entered into New York City’s burgeoning, and increasingly national, commercial culture markets. By studying some of the key figures in this story it becomes possible to get a fuller sense of the true cultural ferment that marked this era of Black musical development. Stage performers Williams and Walker and Cole and Johnson, behind-the-scenes songwriters Will Marion Cook and James Weldon Johnson, and musicians such as James Reese Europe’s artistic and entrepreneurial interventions made African Americans central players in creating the Manhattan musical marketplace and helped make New York City the capital of U.S. performance and entertainment.

The Multinational Corporation

A multinational corporation is a multiple unit business enterprise, vertically managed, that operates in various countries, called host economies. Operations beyond national borders are controlled and managed from one location or headquarters, called the home economy. The units or business activities such as manufacturing, distribution, and marketing are, in the modern multinational as opposed to other forms of international business, all structured under a single organization. The location of the headquarters of the multinational corporation, where the business is registered, defines the “nationality” of the company. While United Kingdom held ownership of over half of the world’s foreign direct investment (FDI), defined not as acquisition but as a managed, controlled investment that an organization does beyond its national border, at the beginning of the 20th century, the United States grew to first place throughout the 20th century—in 2002, 22 percent of the world’s FDI came from the United States, which was also home to ten of the fifty largest corporations in the world. The US-based, large, modern corporation, operated by salaried managers with branches and operations in many nations, emerged in the mid-19th century and has since been a key player and driver in both economic and cultural globalization. The development of corporate capitalism in the United States is closely related with the growth of US-driven business abroad and has unique features that place the US multinational model apart from other business organizations operating internationally such as family multinational businesses which are more common in Europe and Latin America. The range and diversity of US-headquartered multinationals changed over time as well, and different countries and cultures made the nature of managing business overseas more complex. Asia came strong into the picture in the last third of the 20th century as regulations and deindustrialization grew in Europe. Global expansion also meant that societies around the world were connecting transnationally through new channels. Consumers and producers globally are also part of the history of multinational corporations—cultural values, socially constructed perceptions of gender and race, different understandings of work, and the everyday lives and experiences of peoples worldwide are integral to the operations and forms of multinationals.