Reading history is a rewarding experience because it can help shake you out of your myopia and make you realize that you’re a part of something much bigger: the tide of history and the millions who came before and after you.
When I started reading John Steele Gordon’s “An Empire Of Wealth,” it felt quite different from the typical dry histories we were forced to read in school for a number of reasons.
For one, it’s actually well-written and interesting—for an economic history of the largest powerhouse on the planet, that’s no small feat. The pacing and flow are both to be commended, as Mr. Gordon traces “The Epic History of American Economic Power” from the first tobacco cash crop in Virginia through the New Economy and the first days of the war on terror.
His perspective is also very balanced. For example, although Gordon is clear to point out why the lack of a Federal Reserve contributed to the violent roller coaster ride the US economy took throughout the 1800s, he also discusses how the new Fed has basically failed in its mission throughout the 20th century (with the exception of the response to the 1987 crash).
Another example is the equal blame parceled out between government and Wall Street for the Great Depression, blowing a massive hole through the historical revisionists who would have us believe otherwise. (Hint: Wall Street’s biggest contribution to the Depression isn’t what you might think).
You travel along with the nation’s economy as though watching a movie, through the boom times and the dark times, and believe it or not, the former is more prevalent. A recurring theme is the technological breakthroughs; not just the inventions themselves, but the innovators who were able to get prices down to the buying power for the average citizen.
And how quickly things moved! Although Henry Ford was one of the wealthiest men on the planet, by the 1930s and 40s even he had to restructure his motor company when he realized that cheaper manufacturing via the assembly line was not the be-all, end-all of a sustainable business. At the dawn of the 1990s, the wealthiest person in America was Sam Walton of Wal-Mart. I think we all know what happened to that title by the time the 90’s were over!
So when you’re reading this highly accessible but informative history and when you’re thinking that things in America today are just “too fast,” “too much happening at once,” “unsustainable,” or whatever negative jargon that likes to get thrown around by the self-proclaimed realistic cynics of the world, just remember that when the locomotive became popular, there were just as many people wishing for the good old days when we all lived isolated existences in the impoverished countryside, unable to travel more than ten miles per hour.
The USA is truly unique because although we’ve had our militaristic moments as a nation, American dominance of the globe has come largely through the rapid creation of wealth, an empire of it, as the book’s title suggests. And the magnificent improvements to daily life that we are now beneficiaries of have helped the American people become more optimistic than most.
“We have never completely lost it, even in the worst of times that were to come,” Gordon writes in the chapter on the Victorian era. When I finished that section, I recall thinking that if our ancestors could do it, we can do it too. Hopefully you will come away with the same rewarding perspective.
Read up, monkeys!
Monkey’s Review 1: Barbarians At the Gate
Monkey’s Review 2: The Financier
Monkey’s Review 3: Decision Points
Monkey’s Review 4: Debunkery
Monkey’s Review 5: When Genius Failed
Monkey’s Review 6: Monkey Business
Monkey’s Review 7: Death Of The Banker
Monkey’s Review 8: A Journey
Monkey’s Review 9: Damn It Feels Good To Be A Banker
Monkey’s Review 10: The Quants
Monkey’s Review 11: All About Hedge Funds
Monkey’s Review 12: The Unlikely Disciple
Monkey’s Review 13: Adventure Capitalist
Monkey’s Review 14: The Hedge Fund Book
Monkey’s Review 15: Investing In Hedge Fund of Funds
Monkey’s Review 16: Hilarity Ensues
Monkey’s Review 17: The Prince
Monkey’s Review 18: Markets Never Forget (But People Do)
Monkey’s Review 19: The Money Culture
