Free resources that align with five common economic standards for public schools
STANDARD: The Progressive Movement in the United States (1890-1914) –The learner will analyze the economic, political, and social reforms of the Progressive Period
“Commerce and the Progressive Era”– Bill of Rights, article can be accessed through this link
This article provides an overview of some of the most significant political activities of this era.
“Federal Government Growth Before the New Deal” - Randall Holcombe; Foundation for Economic Education
The author of this article outlines several measures that grew federal government power prior to the 1930’s, including the Progressive Era.
“Teddy Roosevelt and the Progressive Vision of History” – Burton Folsom, Foundation for Economic Education
This article summarizes the main points of Roosevelt’s landmark “New Nationalism” speech that outlined many of the progressive political ideas. Among those ideas are:
Too much wealth had been accumulated in the hands of few large corporations, run by so-called robber barons
An active, interventionist government should control industry to erode the alleged power held by these wealthy “robber barons”
Individual liberty should cede to “national interests”, as determined by those in charge
10-minute video: Milton Friedman –The Robber Baron Myth
In this video, Friedman analyzes the key progressive claim that the 1800s was a time in which the common man in American was being exploited by big business owners (i.e. robber barons)
The Truth About “Robber Barons” –Thomas DiLorenzo; mises.org
This article focuses on the facts behind some of the most highly demonized “robber barons” of the Progressive Era, including James J. Hill, Cornelius Vanderbilt and John D. Rockefeller. Topics addressed include:
- Did these “robber barons” exploit consumers through their monopoly power? Theory states that monopolists would restrict output and raise prices, what was the actual record?
- The difference between “market entrepreneurs ”and “political entrepreneurs.” Which ones are more guilty of exploiting power?
Video: Robber Barons and the Progressive Era
In this 1-hour video by best-selling historian Tom Woods, the records of well-known “robber barons” are explored further. Topics explored are very similar to those covered in the Di Lorenzo article.
- Also covered is the theory of “predatory pricing” as a tool for monopolistic corporations to eliminate competition. This theory was an important justification used by Roosevelt and other progressives for greater government control over industry.
Note: Can stop the video at the 51:30 mark, the remaining discussion is not reallyrelevant to this topic
STANDARD: Prosperity and Depression(1919-1939) – The learner will appraise the economic, social, and political changes of the decades of “The Twenties” and “The Thirties”
“Rights and the New Deal” – Bill of Rights Institute, article can be accessed through this link:
Provides an overview of some of the major initiatives of the New Deal
Video: Top Three Myths of the Great Depression and the New Deal
A 2:12 video touching upon commonly-believed myths of the Great Depression and recovery; Institute for Humane Studies
Article: World War II Spending Did Not End The Great Depression – Sheldon Richman, Reason Foundation
Addresses the commonly-held myth that WWII ended the Great Depression
Article: Hoover’s Economic Policies – Steven Horwitz, Library of Economics and Liberty
Corrects the myth that Herbert Hoover was a non-interventionist in the economy at the onset of the Great Depression.
Video: Austrian Business Cycle Theory – Dr. Thomas E. Woods
In the first 4 minutes, 20 seconds of this video, Dr. Woods provides a brief, introductory explanation of how business cycles happen. Video can be stopped at the 4:20 mark for purposes of this lesson, the rest of the video gets into what not to do once recession has started and examines 2008 crash in light of the theory
Article: The Great Depression –Hans Sennholz
This article touches on the money & credit expansion of the Federal Reserve leading up to the Great Depression (the primary cause of economic boom and busts as outlined in the above video).Article also details several government interventions that prolonged the Depression.
STANDARD: Economic Choices – The Learner will investigate how and why individuals and groups make economic choices
Article: Structure of Capital – Gene Callahan, Mises.org
This article explores how capital goods can be categorized by their relation to the final stage of production of the consumer good. This is an often overlooked point by economists – who instead just look at “capital” as a homogenous aggregate.
Book excerpt: Man, Economy and State – Murray Rothbard; Ch. 1, section 3 “Further Implications: The Means” – Pg. 8 of the book (pg. 73 of pdf) thru pg. 13 of the book (pg. 78 of the pdf)
This discusses the various factors of production, how they are related to the production process of the final consumer good, and the fact they derive value from their contribution to the creation of the final consumer good.
Video: The Economic Way of Thinking– Anthony Carilli
This 5-minute video discusses the framework and motivation for individuals making choices in light of the fact of scarcity of resources
Book excerpt: Man, Economy and State – Murray Rothbard; Ch. 1, section 2 “First Implications of the Concept” – Pg. 2 of the book (pg. 67 in pdf) thru pg. 8 (pg. 73 of the pdf)
This section discusses the fact of scarcity and how it compels people to choose among competing goals, which introduces the concept of opportunity costs
Video: Opportunity Costs: The Parable of the Broken Window, from the “Learn Liberty” series produced by the Institute for Humane Studies
This five-minute video describes how the act of choosing necessarily means that some goals to unfulfilled – the most highly rated foregone goal is the opportunity cost – through a classic tale of a broken window
Video: Division of Labor/Specialization – Council of Economic Education
Two-minute video explaining how Division of Labor/Specialization increases productivity and living standards
Article: I’ll Stick with These: Some Sharp Observations on the Division of Labor – Dr. Michael Munger
This article discusses the societal benefits coming from the division of labor not only in individual production processes, but between nations as well
Video: I, Pencil – Competitive Enterprise Institute
This six and half minute video brings to life the classic 1958 essay of the same name, which uses the production of a supposedly simple pencil to show how the division of labor helps to produce items we take for granted
STANDARD: The learner will analyze features of various economic systems
Article: Why Socialism Failed – Mark J. Perry, Foundation for Economic Education
This article describes how a socialist economy’s characteristics fail to take into account three key human incentive structures
Article: Why Socialism is Impossible – Richard Ebeling, Foundation for Economic Education
This article explains how socialism places control of the means of production in the hands of the state, and the result is an absence of prices for these factors, which makes entrepreneurial calculation impossible
Article: The Elite Under Capitalism – Ludwig von Mises, Mises Institute
In this article, Mises compares the derivation of power under pre-capitalistic times to the capitalistic system, and how the capitalist “elite” can prosper only by satisfying the needs of the common man
Book excerpt: Lessons for the Young Economist – Robert P. Murphy, Ch. 9, second section “Competition Protects Consumers”, pps. 127-128
This section discusses the dynamic effects of a competitive market, and how changes in the number of competitors in an industry can impact pricing decisions
Video: The Economics of Free Enterprise – part of the “Free Enterprise Now” series
This six-minute video describes the basic characteristics of the market economy
Video: Is Price Gouging Immoral? Should it Be Illegal? - Institute for Humane Studies, Learn Liberty Series
In this 5-minute video by Prof. Matt Zwolinski, the issue of “price gouging” is examined and how prices during extreme shortages during disasters change, and what happens if government does not allow for prices to adjust
Book excerpt: Lessons for the Young Economist – Robert P. Murphy, Ch. 7 “Indirect Exchange and the Appearance of Money”, pps. 99-108
This chapter discusses the crucial role money plays in trading/exchange; and in so doing discusses how money emerges in an economy
STANDARD: The learner will analyze factors influencing the economy
Video: Understanding Business Regulation – part of the “Free Enterprise Now” series
This five-minute video provides an introduction to the vast volume of federal business regulations and how it hampers voluntary exchange
Book excerpt: Lessons for the Young Economist – Robert P. Murphy, Ch. 18, parts 3 & 4 “Sales Taxes” and “Income Taxes”, pps. 277-282
These sections discuss the impact of sales and income taxes on actors in the economy
Book excerpt: Lessons for the Young Economist – Robert P. Murphy, Ch. 18, pps. 361-374
This chapter outlines the causes and phases of the business cycle (boom and bust)
