c Bo 9781139053815 a 023

aged: labor force participation of, 550; seealso elderly (the)

agglomeration economies, 443, 528, 530Agricultural Act of 1965, 736Agricultural Adjustment Act (AAA), 321,

323–4, 458, 732, 733, 734–5, 977,1038; invalidation of, 1042; second(1938), 735

Agricultural Credits Act (1923), 751agricultural employment: decline of, 104agricultural experiment station system,

714Agricultural Marketing Act (1929), 731,

732agricultural productivity: chemical inputs

in, 848–49agricultural regions, 98, 99, 103, 118,

122–34, 136, 176agricultural research system, 696, 709,

714agricultural sector: Canada, 202;

contribution to national economy, 695;protectionism in, 458; see also farmsector

agricultural settlement: populationdistribution in, 526–7; spatialdistribution of population in, 522

agricultural subsidies, 737, 738–9, 740Agricultural Trade Development and

Assistance Act of 1954, 735

ability to pay principle, 1018, 1023,1034, 1058

abolitionism/abolitionists, 641–2, 645Abramovitz, Moses, 166, 804–5academic medical centers, 824–5academic research, 830, 852–3, 909; and

industrial research, 815–17, 823–4accounting period: in measurement of

poverty and inequality, 281, 283Addyston Pipe case, 810n4Adkins v. Children’s Hospital, 650, 685adjustable rate mortgages (ARMs), 790–

1Administrative Procedures Act of 1946,

990–1, 1012Advisory Committee on Reconstruction

(Canada), 229–30affirmative action, 550, 553Africa, 330, 331African-Americans, 162, 943, 954; see also

blacksage-adjusted total death rate, rate of

change in, 1900–1993, 516tAge Discrimination and Employment Act,

615age-specific mortality rate, rate of decline

in, 1900–1993, 517fage structure: Canada, 233; of families,

264, 265; and labor force participation,558, 572

INDEX

1145

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agriculturally based industries: seasonalityin, 599

agriculture, 48, 77, 175, 745, 928; childlabor in, 572, 573; cooperativemarketing, 1034; decline in, 147, 558,564; federal finances in, 751–52; futureof, 739–42; government regulation,977, 1009; governments subsidizing,733–4; and industry, 125; laborproductivity growth in, 83;mechanization in, 76, 114, 123,697–700, 704–8, 715, 716;productivity gains, 285; regionalchanges, 118–20; shift out of, 104,114, 263; in South, 99, 100; see alsofarmers; farms/farming

agriculture (Canada), 214, 239–40;impact of First World War on, 207–8;investment in, 203; unemployment in,222

agriculture, northern: chemical andbiological revolutions in, 708–11;productivity growth, 700–17; regionalcontrasts (1910–1990), 696–700,698–99t; transformation of, 693–42;transportation and communicationrevolutions in, 711–14

Aid to Dependent Children (ADC), 274,280

Aid to Families with Dependent Children(AFDC), 269, 271, 274, 275, 276, 278

air pollution control, 994, 1011Air Mail Act of 1934, 840aircraft/airplane, 34, 804, 807, 829,

838–45, 906; aluminum in, 873;internal combustion engine and, 838

aircraft industry, 408, 450, 453, 456, 830,951; leadership and competitiveness in,445; technological changes, 839–45

Airline Deregulation Act, 998airline industry/airlines, 953;

consolidation of pre-deregulation trunkand local, 1000f; deregulation, 997–99;electronics in, 878; regulation, 1012;regulatory failure in, 997

Alabama, 123

Alberta, 223Alcoa, 809, 811n6, 844, 942, 947, 951Alcoa case, 987Aldrich-Vreeland Act of 1908, 744Allen, Robert, 420–2Allies: aid provided to, 337, 393, 489aluminum: electricity in, 869–73Amalgamated Clothing Workers, 666American aid to Western Europe, 490tAmerican exceptionalism, 5, 65, 555, 583American Federation of Labor (AFL), 582,

613, 655, 666, 667–8, 671–2, 674,677–8, 681, 934, 978; ExecutiveCouncil, 675–6

American Revolution, 1022; ideals of,1023–4

American Stock Exchange (AMEX), 784,789, 800

American Sugar (Co.), 936“American System of Manufactures,” 832American Telephone and Telegraph, see

AT&TAmerican Tobacco, 931, 932, 933, 973ammonia, synthetic, 847–9animal husbandry, 48, 716antibiotics, 11, 31–2, 33, 861anti-communism, 371, 372, 686anti-competitive behavior, 969, 1008anti-discrimination legislation, 612, 615Anti-Inflation Board (AIB) (Canada), 242anti-poverty legislation/policy, 273–6,

279–80, 378, 382antitrust, 951, 1006–8; re banking

system, 780; enforcement, 987–8; andagricultural cooperatives, 731; unionsand, 654–7, 675

antitrust law, 321, 652, 653, 908–9, 946,947, 977, 987, 1008; patents and, 812,813

antitrust policy, 423, 424, 447, 448, 451,933, 972–3, 986; change in, 960; andcomputer software industry, 902–3; andindustrial research, 809–11, 825–6,828, 829, 878–9

Appalachia, 100, 120, 124, 125–7, 128,714

1146 Index

TCEINDEX 6/15/00 7:03 PM Page 1146



Appalachian Regional Commission (ARC),125–7

apprenticeship, 626, 631, 633, 637Argentina, 120, 199, 734Arizona, 104Arkansas, 647Arnold, Thurman, 825–6artisans, 135, 630, 631; shift to factory,

44–5, 47, 48Asia, 330, 331; financial crisis, 410;

immigrants from, 162, 505, 536, 613,614; manufacturing relocated to, 121;population growth, 538

assembly line production, 47–8, 99, 555,834, 907, 937

Atack, Jeremy, 44–5AT&T, 448, 466, 817, 827n18, 828, 868,

893, 975, 981, 1011; antitrust suitagainst, 451, 902, 960, 1004, 1006;consent decree, 1004; concessions tocompetitors, 933; divestiture, 1008; in-house research, 811n6, 812, 939, 951;innovation, 942; monopoly, 1003,1004; university ties, 940

Atomic Energy Commission (AEC), 336,339, 824n16, 881, 886

Australia, 120, 199, 424, 455, 472, 527,734; growth in, 66; labor movement, 585

automobile, 121, 169–70, 402n98, 467,755, 807, 829, 853, 868, 905;antecedent developments, 831–2; andcities, 149; early dominance, 432–3;effect on farm life, 705, 711–12;import side, 434–8; and populationdistribution, 533; relative decline of,408; as transforming innovation, 830–8

automobile industry, 99, 115, 124–5,132, 805–6, 834–8, 904; Big Three,437, 438, 439, 959; Canada, 208,238–9; diversification in, 957; foreigncompetition, 958, 959; government aidto, 450; internal combustion engine in,830, 831, 836; leadership andcompetitiveness in, 432–9; managerialquality in, 452, 453; model changes,836; protection in, 456; regrouping in

1980s, 438–9; standardized productsin, 906

aviation industry, regulation in, 983–4

baby boom and bust, 10, 17–18, 59, 540,577; in Canada, 194, 232–3, 240;causes of, 507–14

baby boomers, 36; entering labor force,25, 258

Baily v. Alabama, 643balance of payments, 463, 483, 488, 492,

494–7, 499; Canada, 200, 217, 218;postwar, 490

balance-of-payments deficits, 83, 491, 785balanced budget, 775, 776, 1039, 1040,

1056, 1059bank failures, 173–5, 320, 474, 485, 757,

771, 779, 793–4, 976, 978; andbusiness cycle, 750; Federal Reservepolicy and, 759–61; and GreatDepression, 306–10

bank holding companies, 767, 780–1,782, 795, 796, 979

Bank Holding Company Act of 1956, 780Bank Holding Company Act of 1957:

Douglas Amendment, 795Bank Holding Company Act of 1970, 780Bank Holiday, 315–16, 318, 761, 763,

771, 978Bank Merger Act of 1960, 779Bank Merger Act of 1966, 780Bank of America, 749, 796Bank of Canada, 220, 242, 244Bank of England, 304, 311–12, 482, 484;

discount rate, 483; gold reserve, 473Bank of United States, 175; failure of,

306, 307, 760bank regulation, 175, 320bank reserves, excess, 328, 770, 771, 774banking/banks, 743–802; consolidation,

750; diversified services, 781, 788;electronics in/and, 878; incorporation,930; integrated, 319; lending, 771,778; in New Deal, 765–7; regulations,972, 1010; World War II andaftermath, 773–5

Index 1147




Banking Act of 1933 (Glass-Steagall Act),318, 320–1, 479, 484, 765–6, 767,771, 783, 978, 979; erosion of, 796

Banking Act of 1935, 765–6, 767, 771,978

banking crises, 306, 410, 743; FederalReserve System established to prevent,743–4; in Great Depression, 760

banking sector: growth of, 747–8;regulatory change, 1005

banking system: deposit insurance in,319–20; division of, 744; preventingcollapse of, 320–1; reform of, 317–21;structure of, 757, 779–80

basic research, 823, 951; federal fundingfor, 821

bauxite, 235, 872–3, 905Baxter, William, 960, 1007–8beggar-thy-neighbor trade policy, 457,

488Belgium, 66, 70, 485, 488Bell Labs, 876–9, 885, 939, 951–2, 981,

1004Bell System, 930–1, 933, 939, 951, 952;

broken up, 960Bernanke, Ben, 308, 309Beveridge, Sir William, 229–30Beveridge Report, 229bicycles, 832–3big business, 989, 944, 953–4, 965; and

civil rights, 954–5; and governmentregulation, 977

big labor: rise and decline of, 580–5biological revolution: in agriculture, 704,

708–11, 715, 716, 742biomedical science, 548, 825, 861, 862biotechnology, 827, 863, 864–5, 963–4birth control technology, 511–12, 513birth rate, 12, 15, 16–18, 27; Canada,

194, 232–3, 241black fertility, 507black ghettos, 160Black-McKellar Act of 1934, 984black male wages as percentage of white

male wages by labor market cohort,605t

black-white differences in earnings, 604–6blacks, 122, 123, 143; in Atlanta, 145;

economic gains of, 605; barred fromsuburbs, 149; employment, 156;farmers, 303; life expectancy, 514–15;migration from South to North, 114,303, 604, 605–6; poverty, 161;suburbanization, 153; see also African-Americans

Bland-Allison Act, 471Blank, Rebecca M., 252, 270, 271Blinder, Alan S., 252, 283Blue Sky Laws, 753, 767Boeing, 445, 450, 451, 453, 843, 844–5Bolivia, 493bond drives: World War I, 1030, 1032bond yields, 364, 763bonds, 309, 365, 493; overseas sale of,

464, 472; in war finance, 354, 355 363Boston, 93, 122, 130, 464boycotts, 646, 650, 654–5, 687; common

law of, 656; union, 582branch plants, 97, 124, 136, 493; in

Canada, 211; technical, 136branching, 319, 771; laws against,

breaking down, 795; national banks,767; regulations limiting, 749, 750,752, 779, 979

Brazil, 424, 431, 455, 527Bretton Woods, 83, 490–92, 775, 806;

aftermath of, 498–502; Articles ofAgreement, 491–2; collapse of, 498,785; U.S. financial hegemony, 492–8

Britain, 44, 408; abandoned goldstandard, 312, 485, 486, 760; analogiesto economy of, 966; barriers toagricultural trade, 734; and BrettonWoods, 490, 491; Canada supplier ofmilitary equipment to, 208, 225;Canadian exports to, 215, 217, 226;capital imports, 492; capital outflowsto, 478; computer industry, 887, 888;credit from, 464; credit provided to,475 489; devaluation, 496–7;education, 81–2; emigrants to Canada,233; exporter of capital, 302; exports

1148 Index




from, 419–20; gold exports, 473;imports from, 409; investment inCanada, 236; investment in U.S.,465–6, 467t; jet engine technology,842; loan embargoes, 479; loans to,469; national security expenditures,345n31; preferential duties for Canada,221; replaced by U.S. as leader infinance, 1050; return to gold, 482;shipbuilding, 442, 443, 444, 445; steelindustry, 420–2, 423; textile sector,440; and Tripartite Agreement, 488;unemployment insurance, 229;unwillingness to provide credit, 474;war financing, 356n48; World War II,357, 359

British Columbia, 221, 223, 235British North America Act (BNA act),

222–3, 224, 227brokerage houses, 799, 801budget: direct costs of wars, 336, 338Budget and Accounting Act of 1921,

1033budget deficits, 472, 498, 500, 785, 786,

965, 1045, 1050, 1059, see also federaldeficits

budget surpluses, 410, 470, 472, 775,1037

budgetary control, centralization of, 1045building and loan associations, 755building booms: collapse of, 98–9;

downside of, 169–73Bureau of Internal Revenue, 1028, 1031,

1048Bureau of Labor Statistics (BLS), 56, 249,

394, 398, 589, 591, 592, 596, 597Bureau of the Budget, 1045, 1049Bush, George, 276, 384, 1009Bush, Vannevar, 64, 818n13, 819, 821,

823Bush administration, 273, 277, 1006business, 73, 946, 964; codes of fair

competition, 580; European, 81; andregulation, 971, 991, 992, 1009, 1024,1025; and tax policy, 1032; andwartime finance, 1028

business cycle, 7, 958; actions of Fed and,747; bank failures and, 750;international financial flows and, 463;and poverty/inequality, 250–1, 284

business-government relations: impact ofWorld War I on, 971–2

business schools, 59, 950, 958

California, 97, 118; agriculture, 696; BLSsurvey, 592–5, 598; constructionlending, 176; distributive and serviceindustries, 154–5; gold discovered in,465; high-tech industries, 134;immigrants in, 162; labor legislation,647, 649; new cities in, 148; newhousing in, 150; oil in, 53, 100; out-migration, 531; Proposition 13,1054–5; public utility commission,974; urban system in, 137;urbanization, 140, 143

Canada, 120; and Bretton Woods, 490;corporate income tax, 1016;deceleration in economic performancesince 1973, 241–4; Department ofFinance, 206, 218, 228; Department ofLabour, 228; Department of Munitionsand Supply, 225–6; Department ofReconstruction, 230; downturn ineconomy of 1929–1933, 215–17;economic history, 191–247; educationin, 415; government regulation ofbusiness, 969; growth in, 66; long-rungrowth, 195–7, 198t; national policies,209–13, 216; postwar economicgrowth, 230–44; recovery, 1933–1937,217; textile industry, 941; trade policy,408; wheat economy, 199–213, 214,216, 217, 218, 734; World War II,191–2, 199, 201, 214, 225–30, 237,245; years of disruption, 1930–1950,213–30

capital: derived demands for, 42; fixed vis-à-vis working capital inventories, 44;substituting for labor, 45, 60, 62–3

capital accumulation, 7, 23, 39, 40; andlabor demand, 262; by laggards, 70

Index 1149




capital constraints: agriculture, 729, 730capital equipment, 37, 42, 52, 77capital exports, 83, 492; Canada, 216capital flows, international, 464–9, 493,

904capital formation, 34–5, 166; business and

housing sectors, 172–3; Canada, 236,245–6; foreign investment in, 463,467; see also human capital formation

capital gains, 97–8, 1033capital goods: growth rate of output of,

33–4capital imports, 173, 467, 468, 487–8;

Canada, 194, 197, 200, 204, 236, 246capital/labor (K/L) ratio: and Leontief

paradox, 411–12capital markets, 1029; government

intervention in, 1059; order in, 1032;revival of, 783–5; social basis of, 1030;in World War II, 774

capital outflows, 467, 477–8, 479, 494,495, 496, 497; Canada, 218, 219

capital-output ratios, 47, 60, 61, 63capital stock, 24–5, 27, 28–9, 69–70capital-using bias, 3–4Capitalism, Socialism, and Democracy

(Schumpeter), 811, 838Capper-Volstead Act of 1922, 731Carnegie, Andrew, 931, 933; steel

company, 420, 423, 424, 582cartels, 946, 977, 978, 984; government-

sponsored, 1038Carter, Jimmy, 275, 996, 998, 999, 1002,

1008, 1049, 1055; deregulation, 1009Carter administration, 273, 276, 786,

1001; National Energy Plan, 1003catch-up and convergence: bases of

postwar potential for, 74–84catch-up and convergence, theory of; and

growth records, 69–71Central America: immigrants from, 614central banks, 355, 469, 470, 482, 483,

484, 494, 972; cooperation among, 473central cities, 145, 149, 169, 177; decline

of, 522; federal measures to revitalize,152–3; population, 143

central cities gaining and losingpopulation, number and percentage of,1940–1988, 523t

chain stores, 81, 985–6Chandler, Alfred D., Jr., 2, 60, 826chartered banks: Canada, 218–19, 220chemical engineering, 852–3, 859, 862,

905, 952chemical revolution in agriculture,

708–11chemicals industry, 48, 50, 805, 807, 829,

847, 860, 876, 885, 904, 911–12, 950,951; automobile and, 836; computersin, 893; diversification in, 957; M.I.T.and, 853; petroleum-based, 849–56;R&D, 809, 813, 815, 817, 819n14;suppliers of input to all sectors ofeconomy, 856; technological change,845–65

chemistry, 716, 807, 809, 845–6Chicago, 96, 122, 127, 131, 146, 147,

235; federal relief expenditures, 158;meat packers, 937; population, 93;poverty in, 160; size, 146

child allowance scheme (Canada), 230child labor, 555, 572–4; elimination of,

550, 609, 614child labor laws, 550, 553, 573, 613, 685,

988childbearing, 505, 539; rate of, 507, 539childrearing: and household locational

decisions, 531, 533children: costs of, 12, 18, 546; dependent,

15, 16Chile, 239China, 339, 371, 469, 536; Cold War,

345cholera, 514, 521Chrysler, 437, 438, 756, 835–6; bailout,

438, 450cities, 527; Canada, 204; and economic

growth, 162–76; government provisionof goods and services to, 153, 157–60;mortality in, 11; and production/socialreproduction, 153–62; see also centralcities

1150 Index




cities system, 95, 96, 134, 137, 177;changes in urban form and function,147–53; changing, 138–62; cities withexport service bases in, 160; dimensionsof, 138–47

city-building, 95–6, 97–8, 134–8, 146,147, 162–4, 169, 175, 177; aseconomic activity, 154; and financialinstability, 173–6; and long swings,165–6; New England, 172

Civil Aeronautics Act, 984Civil Aeronautics Board (CAB), 984, 998civil rights, 954–5, 991; labor

organization and bargaining as, 672,676–7

Civil Rights Act of 1964, 553, 606, 615,689

civil rights legislation, 686–90Civil War, 7–8, 10–11, 329, 388, 1030;

constitutional amendments, 643–4; indevelopment of public sector, 1020,1058; financing, 350, 356, 386; andinternational capital flows, 465;pensions, 472

Civil Works Administration, 158, 1038Clark, John Maurice, 335, 337, 348, 386Clayton Act, 447, 451, 582n20, 656–7,

972, 973, 986, 1024; applied to banks,780; Cellar-Kefauver Amendment, 987

Clean Air Act, 994, 1011Clean Air Act Amendments of 1977, 994clerical sector, 563, 565, 579, 607;

women in, 943Cleveland, Grover, 583, 613Clinton, William, 273, 276Clinton administration, 275, 277closed shop, 662, 664, 677, 686; bans on,

687coal, 51, 52, 125, 126, 127, 148, 527,

1002; energy source, 869, 875, 876Cold War, 329, 332, 335, 389, 458, 686,

828, 878, 886, 948, 959; alliancestructure, 959; costs, direct, 337,341–6; defense expenditures, 333;environmental and health effects of,347n33; financing, 378, 382–5, 383t,

1053; and government spending, 1013,1014, 1059; institutional arrangementsin, 333–4; opportunity costs, 400,401–3, 403t, 404

collective bargaining, 323, 627, 665, 667,668, 678, 688, 690, 1040; extension of,679; in labor law, 656–7; law of,625–6, 659–61; as organizationaladjustment, 675; in recovery, 670, 671,672; restrictions on, 669; right of, 580,676–7, 680, 681

collective bargaining agreements, 656collective bargaining policy: New Deal,

628, 670–1, 672–5, 684–5college education, 54, 55, 58, 59–60,

574, 609–10; returns to, 611college graduates, 258, 259, 260, 261,

285colonial America: labor law, 630–2Colorado, 135, 647commercial aircraft, 839, 840–1, 850n30commercial aircraft industry, 805–6; and

defense industry, 843–4; developmentcosts, 845; jet engine in, 842–3

commercial banks/banking, 170, 318–19,365, 369, 370, 485, 747, 756, 761,762, 764, 769, 775, 801; collapse of, inGreat Depression, 760; crisis andrecovery of, 792–6; decoupled frominvestment banking, 979; dilemma of,748–52; excluded from capital markets,783; failures, 410, 1007f; interest rateceilings, 790; mortgages, 772; in NewDeal, 765–6, 771, 778–81; number of,750, 795; share of assets, 787; in WorldWar II, 774

commercial paper, 772n16, 774, 778,779, 788, 791; discounting, 469, 481

commercial policy: Canada, 237–9Commodity Credit Corporation, 733, 736commodity markets, 206; international

collapse of, 191–92commodity prices, collapse of, 213, 304,

309–10commodity-producing industries sector

(Canada), 239–40

Index 1151




common law: conspiracy doctrine, 652–3;contract of employment, 660; employerliability in, 648, 649; employmentrelation in, 683; of law of employment,626–7, 629

Commons, John R., 660–1, 673, 677Commonwealth v. Hunt, 626, 637communication sector: foreign investment

in, 467communications, 3, 60, 83; developments

in, 31, 32t, 911; TFP, 62communications industry, 975;

deregulation, 959; incorporation in,928, 929, 932; oligopoly in, 976;regulation, 981–2

Communications Act of 1934, 981–2Community Reinvestment Act of 1977,

793n29competition, 953; airlines, 998; in

aviation business, 984; antitrust policyand, 960; banks, 795; curtailed, 986,987; electric power industry, 1003;“excessive,” 976; financial sector, 766,773, 778, 779–80, 781; global,957–65; government-managed, 971;marketing and, 942; in railroads,931–2; regulated, 984, 1008–11; andregulation, 969, 1012;telecommunications industry, 1004,1005; unfair, 977; Wall Street, 799

Competitive Equality Banking Act of1987, 795n31

competitiveness, 407, 408, 419; antitrustpolicy in, 451; of Japan, 426; loss of,and import barriers, 456; measuring,416–18; of steel industry, 419–22,430–2

Comptroller of the Currency, 749, 796compulsory education laws, 550, 574, 613computer(s), 34, 65, 446, 530, 804, 878;

in aircraft industry, 844–5; andpopulation distribution, 534, 535

computer hardware, 448, 449, 451computer industry, 136, 448–9, 827–8,

886–95, 911, 951computer science, 824, 890, 905; R&D

funding, 902computer software, 448, 449, 823n15,

886, 888, 890, 891, 892; custom, 897,898n60, 901; standardized, 896, 897,899–900

computer software industry, 878, 885,963; advantages to U.S. entrepreneursin, 912; microprocessor and rise of,895–903; size of, 900n63

conglomeration, 957–8Congress of Industrial Organizations

(CIO), 580, 676, 677–8, 946Connecticut, 121, 130, 131; labor law,

633Constitution: “general welfare” clause,

817; fourteenth amendment, 627, 641,643–4, 646; sixteenth amendment,350–1, 1018–19, 1023, 1025;thirteenth amendment, 627, 641, 642,643

construction: investment in: Canada, 203;population redistribution and, 167

construction industry, 163, 164–5;collapse of, 171–2; long swings, 166,169

consumer credit, 304, 310Consumer Credit Protection Act, 793n29consumer electronics industry, 888;

foreign competition, 958, 959consumer expenditures, 30, 31; World

War II, 773–4Consumer Price Index (CPI), 373; Canada,

242Consumer Product Safety Act of 1972,

992–3Consumer Product Safety Commission

(CPSC), 988, 991, 993, 1009consumption, 66; Canada, 215, 217, 228;

in cities, 153, 160–2; fall in, 305, 310;sacrifice in, in wars, 393, 394,398–400, 402–4, 405

consumption expenditures on goods andservices, 387

continuous process technologies, 850, 907contraception, 12, 511–12, 513contract(s), see employment contract(s)

1152 Index




convergence, 65–6, 83–4; in black-whiteearnings, 604; regions, 99–118; see alsocatch-up and convergence, theory of

Coolidge, Calvin, 732, 945Coolidge administration, 985Cooperative Marketing Act (1926), 731cooperatives, farmers, 726, 730–1copper, 51, 52; Canada, 208, 217, 221,

234corporate control, market for, 961, 964corporate economy, 927–67; nineteenth

century, 928–30corporate liberalism, 945, 1024–5, 1033,

1034–5, 1038, 1050; of Hoover, 1037,1038

corporate taxes, 1016, 1027–8, 1041–2,1043, 1047, 1058; 1940–1946, 362–3,363t; in war financing, 352, 354, 358,367–8

corporation(s): attacks on, 943–95;dominance of, 929–30; andenvironmentalism, 955–6; locus ofentrepreneurial activity, 928; productand process innovation, 966; recoveryfrom Great Depression, 948; structureof, 949–50; ties to professions, 941;state and, 1027; and tax reform,1042–3

cotton, 118, 127, 303Council of Economic Advisers, 1009,

1051courts: and collective agreements, 661–2,

663–4; and collective bargaining,659–60; and common law of labororganization, 650–2; common lawmodel of labor law, 641; and employerliability, 638–9; and freedom ofcontract, 664; and industrial democracy,681–4; and labor conspiracy, 635–7;labor law/legislation, 627, 646–8, 691;and labor movement, 645–6; and“management,” 637–8; master-servantrelation in, 634–5; Wagner Act in,680–1; and workers’ compensation,648–50

craft organizations/unions, 443, 580, 934

credit, 480, 481, 486, 756; Canada,219–20; Federal Reserve, 485, 486;postwar, 491; in World War II, 489

credit contraction/rationing, 304, 308,309–10, 312

credit demand, 470, 473, 481, 778credit unions: regulation of, 769–70crop support programs, 694, 737, 740crude total factor productivity (crude

TFP), 21, 22, 23, 23t, 28, 29currency crises, 311–12, 314current account balance and net gold

inflows, 1881–1913, 468f; 1914–1939,480f

current account balance and net reserveinflows, 1946–70, 496f

Czechoslovakia, 339, 371

Danbury Hatters case, 582Danziger, Sheldon, 271, 283David, Paul A., 56, 62, 904–5death and disability (wars): costs of,

347–9; Vietnam War, 382n78death rates, 15, 32; see also mortalityDebs, Eugene V., 973debt, 379, 996; war-created, 354, 373debt financing, 777–8; in war financing,

334, 356, 363–5, 366, 367, 369, 386debt holdings, gross federal, 1941–1946,

366tdebt service: foreign investors and, 464–5defense expenditures/spending, 97, 128,

137, 177, 277, 331, 346, 393, 404–5,1015; Canada, 227–8, 229; Cold War,382–5; congressional opposition toexpansion in, 371–2; increases in, 1055,1056; Korean War, 332–3, 338–40,368; peacetime, 330; Vietnam War,332–3, 373–82; World War I, 744–5;World War II, 338, 357, 358, 365–6

defense industry: and commercial aircraftindustry, 843–4

defense-related R&D and procurement,821–3, 822f, 828

deficit financing: Cold War, 382–5;Vietnam War, 376–9, 381, 386

Index 1153




deficit spending, 1039, 1040, 1045, 1051;see also budget deficits

degenerative diseases, 514, 521, 547–8deindustrialization, 117, 128–9, 285Delaware, 131demand factors: in shipbuilding industry,

443; in spatial distribution ofpopulation, 526, 527–8

Democratic party/Democrats: tax ideology,1022, 1025; and tax policy, 1027,1028, 1051; and tax reform, 1057

demographic change, 2, 15; effect onpoverty rate, 268–72; and householdincome, 263–4; and inequality, 250–1,257, 284, 285; and labor markets, 550

demographic trends: and long-termeconomic growth, 539–47

Denison, Edward, 259, 611dependency burden, 541–2; and economic

growth rate, 545; impact on workingage population, 545–6; populationgrowth and, 544–5

deposit insurance, 175–6, 319–20, 765–6,773, 779, 790, 794, 979

deposits: interest-rate ceilings on, 979,1005, 1006; price of, 306, 307

depression(s), 124, 171, 465, 474, 932,957; agricultural, 695, 732; and farmpolicy, 694; and government spending,1013; and growth of public sector,1035; and labor law, 670; andprotectionism, 456; and revenuesystem, 1023

deregulation, 175, 736, 959–60, 971,1011; airlines, 997–9; banking andfinance, 743; brokerage commissions,796; electric power, 1002–3; financialservices, 1005–6; petroleum and naturalgas, 1001–2; political interests in, 996;Reagan administration, 1008–10;regulatory failure in, 997;telecommunications, 1003–5; truckingand railroads, 999–1001

desktop computer, 893, 896, 898, 899,900, 903; networking, 900–1, 903

Detroit, 127, 131, 147, 157, 235;transportation, 149

devaluation, 302, 321, 488, 496–7; inBretton Woods Agreement, 491–2; inCanada, 219; of dollar, 316, 318; ofEuropean currencies, 494; in GreatDepression, 316–17, 318

diphtheria, 11, 514, 520direct foreign investment, 466–7, 468–9,

492, 496; Canada, 236discount rates, 469, 470, 473, 481, 483,

484, 485, 745, 771, 972diseases, 11, 514, 518–19, 520; of old

age, 521distribution of gainful workers of

employment by major sector ingeographic divisions, 1900–1990,106–13t

distribution of unemployment formanufacturing workers, by state,1880s-1890s, and for U.S., 1910,593–4t

diversification, 950, 957–8; antitrustpolicy and, 826; Canada, 211, 212;R&D in, 810

dollar, 492, 493; appreciation of, 260,500–1; Canadian, 218, 219; confidencein, 1038; depreciation, 487–8, 501;devaluation of, 316, 318, 497, 500,996; international role of, 498–501;run(s) on, 315, 760, 785; value of, 312,313, 1050

Dominican Republic, 536Dominion Lands Act (Canada), 209–10,

212Dominion Notes Act (Canada), 220Douglas Aircraft, 453, 842, 843Dow Jones industrial average, 758, 783,

800; 1914–1997, 757, 758fdumping, 443, 447, 456, 731, 734Du Pont Company, 48, 810, 811, 812,

817, 826, 852n34, 854, 855–6, 858,859, 947; antitrust case against, 933;innovation, 946, 952; R&D, 816, 940,951; structure, 949

durable goods, 77, 222, 755–6

1154 Index




early Republic: labor law in, 632, 637earned income tax credit (EITC), 275earnings, 257, 349, 509, 565–9, 570,

601; black-white differences in, 604–6earnings inequality, 254, 257–64, 283East North Central division, 115, 132,

140–1; agriculture, 696, 697;manufacturing employment, 115

East South Central division, 100, 140Easterlin, Richard A., 17, 18, 165–6Eastern Europe, 84, 339, 367, 695Eccles, Marriner, 767, 1043economic growth/development, 3, 912,

918, 976, 986, 996; agriculture’scontribution to, 721; attack on, 994;dependency burden and, 545; effects oftechnological change on, 804–6, 807;flow of funds financing, 743; foreigninvestment in, 463; and inequality,284–6; investment/saving in, 467–8;and life expectancy, 518–19; long term:demographic trends and, 539–47; post-World War I, 745; post-World War II,783; and poverty rate, 250, 252, 264,268, 269–70, 271, 285–6; populationgrowth and, 543–4; in populationdistribution 526, 533, 534, 548; publicattitude towards, 82; regions and citiesand, 95, 162–76; and spatialdistribution of population, 529; andstock market, 801; see also growth

economic growth (Canada), 244–7;postwar, 230–44; sources of, 197–9,198t

economic history: Canada, 191–247economic lifestyle: and family formation,

508–9economic mobility, 161, 965economic policy, 302; Canada, 198,

242–3; and population growth, 548;and unstable economy, 785–6

Economic Recovery Tax Act of 1981(ERTA), 1056

economies of scale, 2, 28, 37, 39, 70, 527,906, 947; auto industry, 433; Canada,198, 210, 245; education, 554; electric

power, 1002; government policy and,452; large companies, 937;manufacturing, 96–7; processinnovation and, 952; productivity,12–13; technological systems, 53;urban growth, 143

economies of scope, 433n13, 899n62Edison, Thomas A., 48, 445education, 3, 12, 616, 714; blacks, 604,

606; and corporate employment, 957;and human capital, 609–12;international perspective, 80–2;investments in, 2, 43, 416; and laborproductivity, 24, 25–7; publiclyprovided, 554; returns to, 552; andwage structure, 601, 603, 604; see alsohigh school education; higher education

education expenditure: Canada, 240educational level, 37, 54–60, 73, 78, 551;

aging of labor supply and, 546–7; andcomparative advantage, 415; andearnings inequality, 258–9, 260, 261;of elderly, 541, 542; high-techindustries, 136; and women in laborforce, 579

efficiency wages, 322–3, 588Eichengreen, Barry, 316, 458Eisenhower, Dwight D., 131, 1049Eisenhower administration, 783elderly (the), 264, 270, 271, 286, 326;

dependency, 541–2, 544, 545–6; inlabor force, 541–2; locationalpreferences of, 531–3; proportion of, inpopulation, 539; transfers to, 269, 273,277, 280; see also older Americans

electric motor, 873, 874, 874telectric power/electricity, 3, 50, 148, 807,

853, 856, 903; central generation of,865; deregulation of, 1002–3; farms,326, 712, 713; household consumption,866–8; industrial applications, 869–76;technological change in, 865–76

electric power transmission network, 529;and population distribution, 533

electric appliances, 866–8, 867f, 868telectrical industry: R&D, 809, 813, 815

Index 1155

TCEINDEX 6/15/00 7:03 PM 55



electronics, 807, 856, 865–76, 878, 951;and aircraft industry, 844; inautomobiles, 838

electronics industry, 451, 805, 830,903–4, 957; leadership andcompetitiveness in, 445–9

electronics revolution, 876–904electronics technologies, 826–7Emergency Farm Mortgage Act of 1933:

Thomas amendment, 316Emergency Transportation Act of 1933,

983emigration: Canada, 194, 197, 211Employee Retirement Income Security

Act (ERISA), 797, 798employee rights, 677, 690–1; and

employment relation, 681–2; in laborlaw, 672–3, 674, 675; Wagner Act inprotection of, 679, 680, 681, 682

employer associations, 671, 679employer liability, 612, 627, 648–9;

courts and, 638–9employment: change in legal conception

of, 691; Cold War and, 401n98; city-building and, 164; educationalattainment and, 56–7; federalgovernment’s responsibility in, 1051;federal regulation of, 685; growth in,155–6, 157; high-tech, 134, 135;R&D, 811, 813–14, 814t, 817

Employment Act of 1946, 1050–1employment and value added in

manufacturing in geographic divisions,1899–1992, 116–17t

employment contract(s), 632, 634, 639,641, 642, 646, 652, 659, 660, 661–2,685; collective bargaining agreementas, 680–1

employment opportunities, 538, 721,954–5, 989–90

employment relationship, 625, 626, 627,631, 632, 634, 637–8, 639–40, 645,646, 648, 657; asymmetries in, 629,634, 639, 640, 645, 647, 650;collective bargaining and, 659, 667,684–5; common law model of, 642,

651, 683; employee rights and, 681–2;employer’s right to control, 658, 684;in England, 629; equality in, 643;excluded from property interests, 667;labor organizations’ intervention in, 17,650–1; law of, 644, 689; master-servantrelationship in, 660, 661; resistance tointrusions on, 685–6; state interventionin, 649–50, 666–7

energy industry/sector, 959, 975, 985Energy Policy and Conservation Act,

1001, 1002Engel’s Law, 726engineering, 457, 808, 941England, 146: labor law, 629, 630, 631,

636; workers’ compensation in, 649; seealso Britain

entrepreneurs, 422, 432, 931, 964, 1005;political, 1057; and spatial changes inpopulation distribution, 526, 527–8

environment, 51, 164, 172, 990, 994;farmers and, 741–2; laws regardingprotection of, 988, 989, 990, 1009,1010, 1049

Environmental Defense Fund, 990Environmental Protection Agency,

(EPA), 988, 992, 993–4, 995, 1009,1011

environmentalism, 955–6Equal Employment Opportunity

Commission (EEOC), 615, 988estate tax, 352, 1027, 1041–2Eurodollars, 497, 779Europe, 393, 439, 906; central banks,

469; currency crises, 311–12; demandpressures, 495–6; dependence onforeign aid, 490–1; effect of U.S.financial transactions on, 463; exports,121; government regulation of business,969; immigrants from, 505, 613;mortality in, 518; national securitypolicies, 331; population growth, 538;reconstruction and recovery, 434, 478,481–2, 493–4; research in, 824; socialinsurance, 614; trade policy, 408;unions in, 584, 585, 604

1156 Index




European Union, 429, 455Evenson, Robert, 715excess-profits tax, 352, 353, 357, 358,

359, 360, 362–3, 365, 368, 1027–28,1033, 1042; 1940–1946, 362–3, 363t

exchange rates, 321, 488, 491, 775, 785;floating, 242, 404, 405, 497

excise taxes, 352, 367exports, 121, 305–6, 405, 451;

agricultural, 120, 727–9, 728f, 734,735; capital/labor ratio, 412; directinvestments linked to, 469; effect ofimport restrictions on, 451–2; Europe,78; factors of production tied to, 411;natural resources, 414; products in,409–10

exports (Canada), 199, 209, 215, 216,218, 238, 239, 242; and economicdevelopment, 193–4; engine of growth,217; ratio to GNP, 204; during WorldWar II, 226

externalities, 96, 730, 969, 975extractive regions, 98, 118, 122–34, 136,

175, 176

factor content of foreign trade, 410–16factor endowments: international

differences in, 411factory system/factories, 34, 45, 65failed bank deposits to total bank

deposits, 1900–1996, 751fFair Labor Standards Act (FLSA), 553,

604, 614, 685Family Allowance Act (Canada), 230Family and Medical Leave Act, 615family farm, 103, 695, 696, 717, 737,

740“farm crisis,” 694; agricultural policy in

response to, 730–5farm family(ies), 695, 707, 730; income,

174, 720farm mortgages, 174, 751, 754farm policy, 123, 694, 695–96, 729–39;

critical look at, 736–9; post-World WarII, 735–6; response to crisis of 1920sand 1930s, 730–5

farm prices, 317, 717–18, 718f, 726, 727,730, 732, 733, 739, 750, 763

“Farm Problem,” 717–29farm sector, 62; contraction of, 726, 727;

share in national income, 718farm size, 697, 700, 721–3, 722tfarm support programs, 120, 324, 700,

727, 735farmers, 302–3, 693, 696, 740, 751;

acceptance of innovations, 716–17; andautomobile, 711–12; Canada, 217–18;debt, 750; dependent on federalgovernment, 694; and environment,741–2; in Great Depression, 763; inNew Deal, 323–24; oversupply of, 714;part-time, 124–5, 725; production ofown food and fuel, 725–6

farms/farming: electrification, 713; large-scale, 303; movement off, 719–21,740–41

Federal Aviation Commission, 984Federal Communications Commission

(FCC), 981–2, 1003, 1004, 1009, 1011

Federal Credit Union Act of 1934, 770,978

federal debt, 1052–3, 1053tfederal deficits, 351, 368–9, 1039–40,

1042, 1043, 1047; Cold War, 382–5,383t, 404–5; Korean War and ColdWar rearmament, 368–9; Vietnam War,376–9, 381; in Reagan revolution,1056–7

Federal Deposit Insurance Corporation(FDIC), 319, 320, 765–6, 770, 771,779, 781, 793, 794, 979, 1039

Federal Emergency Relief Administration(FERA), 1040, 1044

Federal Energy Administration, 1001Federal Energy Regulatory Commission,

1002, 1009federal expenditures and receipts: Cold

War years, 382–5, 383t; impact ofVietnam War on, 376–9, 381; waryears, 389; see also governmentexpenditures/spending

Index 1157




federal government: and cities, 138, 147,150, 152–3, 177; and computerindustry, 886, 890–2, 901–2; andpharmaceutical industry, 861–2;provision of goods and services, 153,157–60; R&D funding, 808, 817–18, 819, 820–1, 823–4, 828, 885, 911; response to Great Depression,314–17; road construction, 712; insemiconductor industry, 882; supportfor professional training and research,948; and synthetic rubber, 857; see alsogovernment

federal government (Canada): deficits,242–3; and social welfare, 223–5; taxcollecting powers, 227–8

Federal Home Loan Bank Act, 762, 978Federal Home Loan Bank Board (FHLBB),

762, 769, 770, 772, 781, 782, 790,792

Federal Home Loan Mortgage Corporation(FHLMC; “Freddie Mac”), 788

Federal Housing Administration (FHA),150, 770, 788

Federal National Mortgage Association(FNMA; “Fannie Mae”), 770, 781, 788

Federal Power Commission (FPC), 982,1001, 1002

Federal Reserve Act, 355, 478, 480, 481,744, 750, 767, 972

Federal Reserve Bank of New York, 483,484, 485

Federal Reserve banks, 312, 315, 319,355, 364–5, 370, 480, 481, 484,744–5, 761, 771, 972

Federal Reserve Board of Governors, 316,481, 484, 487, 500, 744, 767, 768,780, 1030, 1038; Capital IssuesCommittee, 1029; inflation policy, 960;monetary policy, 1056; reserverequirements, 979; and stock marketcrash, 758, 759; Volcker chairman of,786

Federal Reserve System, 244, 304, 317,318, 328, 365, 370, 404, 470, 474,494, 743–7, 944, 979, 1030–1, 1043;

appropriations for, 1056; establishmentof, 475, 480, 1024; attack on inflation,791, 1055; and bank failures, 759–61;discount operations, 756–7; discountrate, 316–17, 760; discount window,744, 756; discounting rules, 761; andforeign finance, 483–4; gold reserves,485, 486; and gold standard, 482; andGreat Depression, 310–13, 315;interest rates, 757, 774–5, 776, 1005;member banks, 766; monetarycontraction, 1037–8; monetary policy,305, 767, 786, 1040; open marketoperations, 313, 315, 488, 495; reformof, 327; reserve requirements formember banks, 355; and stock marketcrash, 758–9, 800–1; Tenth AnnualReport, 745; in wartime finance, 354,369–70, 379, 773, 1030

Federal Savings and Loan InsuranceCorporation (FSLIC), 770, 772, 781,791, 794; insolvency, 792

Federal Trade Commission (FTC), 430,768n12, 972, 982, 987, 1007, 1008,1009

Federal Trade Commission Act, 972, 973,988

federally financed R&D centers (FFRDCs),821

fellow servant rule, 648fertility, 16, 60; Canada, 194; and

immigration, 538; participation ofwomen and, 579; in population growth,505–14, 548; projections, 539–40

fertility rate, by race, 1900–1991, 508ffertilizer, 697, 701, 709–10, 848–9, 849t,

905fibers, synthetic, 857–60Filene, Edward A., 673finance, 743–802; deregulation, 959;

foreign, 475–84; governmentregulation, 972, 977, 1010;incorporation in, 928, 929, 932;oligopoly in, 976; U.S. replaced Britainas leader in, 1050; World War II andaftermath, 773–5

1158 Index




Finance Act of 1914 (Canada), 206, 218Finance Act of 1923 (Canada), 218, 220financial hegemony of U.S.: Bretton

Woods and, 492–8financial instability: regions and city-

building and, 173–6, 177–8financial institutions, 73, 170, 315,

747–8, 1032Financial Institutions Reform, Recovery,

and Enforcement Act of 1989(FIRREA), 792

financial intermediaries, 320, 355n46,474, 743; cost of services, 788–9;foreign loans, 478–9; in GreatDepression, 759–60; guarantee systemfor, 798; new, 787; protection of, 801;shares of assets, 1900, 747f; shares ofassets, 1929, 748f; shares of assets,1950, 776f; shares of assets, 1970,777f; shares of assets, 1990, 787f; inWorld War II, 774

financial markets, 762–3, 777, 783, 802;global competition in, 801; regulationof, 773, 1039

financial relations, U.S. foreign, 463–504financial sector: integration and fragility,

756–7; regulation of, 770, 773;transformation of, 788–9

financial services, 410, 756, 796, 961,1005–6

financial system, 177–8, 308, 318, 743,986; collapse of (1929–1933), 757–63;economic fluctuations and, 787–8;future, 801–2; maturing (1920s),747–57; rebuilding, in New Deal,764–73, 775; regions and city-buildingand, 173–6; restructured by remediallegislation, 979

Finland, 455First Liberty Loan, 354First National City Bank of New York,

779, 780n20First Pennsylvania Bank, N.A., 793, 794First World War, see World War Ifiscal policy, 82, 83, 305, 326–7, 393n90,

401n98, 463, 487, 494, 497, 500, 541,

776, 786, 1032, 1056; bipartisanconsensus regarding, 1051; effect ofWorld War II on, 1050–1; of Hoover,1037–8; Keynesian, 954; of F. D.Roosevelt, 1039–40 1043–4

Fisher, Irving, 313fixed investment: Canada, 204, 205Fleming, Alexander, 861Florida, 118, 122, 134, 150, 162, 176;

land boom, 170, 171; populationgrowth, 100, 103; “retirement”counties, 531; suburbs, 151;urbanization, 104, 105, 133, 137, 140,143

flow of funds, 787–9, 796, 801; post-World War II channeling of, 775–8,781

Food and Drug Act of 1906, 988Food and Drug Administration (FDA),

326Food Security Act of 1985, 736food stamps, 274n28, 275Ford, Gerald R., 275, 996, 1049Ford, Henry, 48, 587, 705, 833–4, 907Ford Motor Co., 48, 437, 438, 756,

834–5, 937–8, 947, 952; and market,941; structure, 949

Fordism, 48, 833, 907, 938Fordney-McCumber tariff, 458foreclosures, farm, 326, 732, 750, 763foreign aid, 489–90, 490t, 735foreign assets, 468–9, 475foreign-born population, 537, 538; in

labor force, 558, 572foreign borrowing, 501–2foreign capital: in real estate booms, 122foreign exchange, 302, 695; Canada, 226Foreign Exchange Control Board (Canada),

226foreign finance: retreat from, 484–8;

World War I and transformation of,475–84

foreign investment, 463, 464–5, 467–9;Canada, 204, 205; in U.S., 464–9

Foreign Investment Review Agency(FIRA) (Canada), 236–7

Index 1159




foreign lending, 476–77, 483;government regulation of, 479; postwar,492–4

foreign policy, 121, 330, 371 1050;economic, 911

foreign trade, 407–62; Canada, 241–2;factor content of, 410–16

forests/forestry, 50–1, 76, 193, 222France, 70, 77, 146, 312, 483, 491;

barriers to agricultural trade 734;capital exports, 492; credits extendedto, 475, 479; education, 81; goldreserves, 304; gold standard 485; labororganization, 583, 585; militarycampaigns, 330n2; R&D expenditures,820, 828; and Tripartite Agreement,488; war financing, 356n48; WorldWar II, 357, 358

Frankfurter, Felix, 668, 669, 981Franklin National Bank of New York, 793free labor, 626, 632, 639–40, 643–6,

660–1, 665; meaning of, withthirteenth and fourteenth amendments,641–3

free rider problem: in agriculture, 729,731

free silver, 471–2free trade, 121, 408, 450, 738free trade area(s): Canada/U.S., 211, 239Free Trade Agreement (FTA), 239freedom: labor law and, 626, 631; self-

ownership condition of, 641, 645freedom of contract, see liberty of contractfreedom of opportunity, 642–3Freeman, Richard, 263Friedman, Milton, 304, 306, 307, 394,

398, 473, 483fringe benefits, 281–2; as fraction of total

compensation, 570ffrontier, 95, 98, 211full employment, 313, 389, 393n90,

401–2, 1043full-employment surplus, 1043, 1045futures market(s), 789

G. I. Bill, 609, 824n16gainful employment concept, 556,

574n14, 578Galbriath, John Kenneth, 757Gallman, Robert, 46Garn-St. Germain Banking Act, 791,

1005–6, 1009GDP: growth measured in, 29–30;

national estimates of, 67GDP (Canada), 200, 201t, 231GDP per manhour: rates of catch-up in,

71tgender: life expectancy by, 515gender differences in earnings, 579,

606–9; 1820 to 1992, 607fGeneral Agreement on Tariffs and Trade

(GATT), 82, 237–8, 239, 451, 455,806, 1050; Kennedy round, 238

General Electric (Co.), 809, 816–17, 842,843, 844, 932, 963, 964; research,811n6, 812, 938–9, 951; size of, 963

General Motors (GM), 433, 437, 438,439, 835, 937–8, 955; Allison division,843; assets, 942; and foreigncompetition, 962–3; and market, 941;research, 951; structure, 949

General Motors Acceptance Corporation,756

general purpose technologies, 865;recurring dynamics of, 64–6

genetics: agriculture, 704, 709, 716, 742geographic divisions: national total of

personal income, 102tgeographic structure: and technological

change, 807George, Henry, 1023Georgia, 104, 123germ theory of disease, 11, 520Germany, 77, 302, 345, 372, 428, 458,

465, 490–1, 494; abandoned goldstandard, 312; balance of payments,483; banks, 319; barriers to agriculturaltrade, 734; capital outflows to, 478;cartel system, 978; chemicals industry,846–9, 852; competition from, 958;currency stabilization, 479; educationin, 415; invention in, 808; investmentin U.S., 466; model in industrialresearch, 809, 815; pharmaceuticals,

1160 Index




860–1; Potash syndicate, 479;productivity in, 70; R&D, 828;shipbuilding, 443; steel industry,419–22, 423; textile sector, 440; WorldWar II, 357

Gini coefficient, 256, 287Gini coefficient versus income share of top

5 percent, 1913–1996, 253, 253fGlass, Carter, 316, 765, 979, 981glass industry: R&D, 813Glass-Steagall Act, see Banking Act of

1933 (Glass-Steagall Act)GNP, 10, 32, 33n18, 301, 306, 976;

Canada, 214t; defense spending asproportion of share of, 377–8, 379,382, 384; federal revenues percent of,368; growth, 975, 986, 987; percentagedistribution, 1891–1989, 390–2t;percentage distribution of real,1891–1989, 395–7t; rate of increase,745; ratio of taxes to increment, 362,363; savings as proportion of, 364;share spent on national security, 333,401, 402

GNP (Canada), 199, 212; growth of,1951–1993, 231t, 245; ratio of exportsto, 204

GNP accounts/accounting, 336, 341, 379,386–8; costs of wars, 337

gold, 83, 327, 785; discovery of, 202,465, 471

gold convertibility, 469, 471, 472, 473,478, 481, 482, 484; suspended, 486,487

gold exports, 486; Canada, 217gold inflows, 328, 487–8, 489, 744gold movements, 469–70, 474, 484–5,

495gold outflows, 355, 485, 745, 758, 1038gold prices, 494, 497gold reserves, 304, 316, 481, 482, 489,

495, 744; run on, 474; U.S. share of,470

gold standard, 302, 310–13, 314, 315,463, 480, 481, 483, 485, 486, 496,745; Canada, 206, 218–19; GreatBritain abandoned, 760; and

international financial management,469–75; return to, 487, 1035;suspended, 355

Gold Standard Act of 1900, 472Goldin, Claudia, 55, 56, 58, 262, 356Gompers, Samuel, 613, 656, 659Gompers v. Bucks Stove and Range Co.,

655goods and services, 42; government

provision of, 153, 157–60; governmentspending on, 404; measurement of, 6,7; new and improved, 30–5; sacrificedto war financing, 386–405

Gottschalk, Peter, 254, 257, 271, 283government: in agricultural finance,

751–2; attacks on growth of, 1054–5;and capital gains, 163n225; coercivepower of, 1038; consolidation ofprograms of, 1033–6; control ofproduction, 317, 321–4; decisions of,and population redistribution, 526;expansion of, 1059; and incomedistribution, 272–80; and industry inWorld War II, 948; and labor market,612–15; and labor organization, 583;regulatory role of, 1012 (see alsoregulation); see also federal government

government contracts, 553–4, 615, 950government employment, 159, 558government expenditures/spending,

1013–15, 1017; Canada, 205, 215,216, 216t, 217, 224; dependencyburden, 545–6; distribution of, 115;foreign finance in, 464; by function,1015t; manipulation of, 1037; off-budget, 1056–7; as percent of GNP,1013–14, 1014t; social welfare, 274–5,277, 278, 279–80, 286; World War II,1046; see also defense expenditures;national security expenditures

government intervention in economy, 409,730, 989, 1012, 1024; farm sector,694, 714, 729–30, 732–5, 739; labormarket, 553–4, 555; legitimacy of,996; market-oriented critique of, 1007

Government National Mortgage Associa-tion (GNMA; “Ginnie Mae”), 788

Index 1161




government policy, 83; and electronics,446–7, 449; toward foreign trade, 407;and innovation, 964; and leadership,449–52, 453; and steel industry, 430–1; and urbanization of poverty, 161

government policy (Canada), 217–20; anddevelopment, 209–13

government regulation, see regulationgovernment role in economy, 159, 166,

177, 928, 929; Canada, 230, 231; inNew Deal, 325, 326, 327; see alsogovernment intervention in economy

government securities, 364–5, 370, 405government support for business: auto

industry, 432, 437–8Gramm-Rudman-Hollings Act, 1056–7Grand Trunk Pacific, 205, 210grants-in-aid, 384n76, 1054Great Crash, The (Galbraith), 757Great Depression, 7, 11, 16, 17, 29, 33,

67, 82, 131, 301–28, 373, 479, 483,509, 571, 757, 759, 801, 965–6, 981,985, 996, 1012, 1016, 1049;agriculture in, 700; bank failures anddeflation, 306–10; banking crises of,743; in Canada, 191, 196, 213–15,218, 220, 222, 223, 233, 245; causesof, 301–6, 976; cities in, 157–8;corporate economy in, 945, 947, 948;effect on trade policy, 457–8; effect onwages, 565; end of, 1050; andgovernment spending, 1013–14;impacts of, 71, 400; inequality during,256; monetary policy in, 484–5;poverty in, 265, 268, 279, 285; publicsector growth in, 1037–46, 1058–9;and regulatory policy, 971;unemployment, 591

great merger movement, the, 927, 932,933, 935, 938, 965–6

Grebler, Leo, 167, 171Greece, 341Greenspan, Alan, 800Griliches, Zvi, 709, 714growth, 7, 36–40; differences between

nineteenth and twentieth centuries,

1–40; engines of, 64–6; since 1800:statistical profile, 5–40; fluctuations in,7, 10–11; through increasedproductivity, 937; in internationalperspective, 66–84; proximate sourcesof, 5–6; relative importance of sources of,38t; sources of, 9–10, 43; and structuralchange: Canada, 1896–1929, 200–2; seealso economic growth/development

growth accounting, 1–2, 21–2, 23, 25,39, 41, 43, 61, 416

growth of output, inputs, andproductivity in American agriculture,1870–1990, 701f

growth patterns: regional and urban,134–8

growth potential: constraints on, 72–4;realization of, 71–4

growth rates, 958; Canada/U.S., 195–7,196t; new and improved goods andservices in, 31–5

growth records: theory of catch-up andconvergence versus, 69–71

guest workers, 82, 83

Haber-Bosch process, 847–8, 905Hamilton, Alexander, 408, 418, 457Hammer v. Dagenhart, 685Hand, Learned, 951Hansen, Alvin, 1045Harrington, Michael, 125Harvard College/University, 59, 135,

816n11; Business School, 943harvesting machinery, 47, 705, 706–7Hatch Act (1887), 714Hawaii, 131, 162Hayes, Rutherford B., 471Haymarket Square riot, 582health: in population growth, 514–21health and safety regulations, 455, 685,

988, 989, 992, 1009health expenditure, 1015: Canada, 240health R&D: funds for, 863fheart disease, 514, 516, 521, 547Heckscher-Ohlin theory of international

trade, 411–12

1162 Index




Heller Commission, 249Hewlett Packard, 135, 963high school education, 54–6, 57–8, 609;

returns to, 611; see also secondaryschooling

high-tech industries, 130, 137, 157high-tech regions, 134–8, 177higher education: investments in, 910;

structure and funding of, 815–16;training of professionals, 942–3, 950

higher education institutions, 59Highway Act (1944), 712highway construction, 97, 126, 170, 177,

1049Highway Safety Act, 991highways/highway system, 149, 155, 529,

1036Hispanics, 143, 162holding companies, 974–5, 981, 1041;

S&Ls, 782; utility, 982; see also bankholding companies

Holland, 465home mortgages, 149, 170, 177, 769–70,

772–3; securitized, 788Home Owners Loan Act of 1933, 769Home Owner’s Loan Corporation (HOLC),

769, 1044homeownership, 149–50, 161Homestead, Pennsylvania, 582Homestead Act of 1862, 209Hoover, Herbert, 157–8, 312, 314–15,

316, 732, 764, 975, 977 1034, 1039;farm policies, 734; fiscal activism, 1040

Hoover administration, 313, 314, 316,985, 1045

Hopkins, Harry, 1043horizontal integration, 932–3Hounshell, David A., 48, 816hours of work, 2, 549, 570–2, 571f, 584;

collective bargaining in, 661; decreasein, 553, 554; legislation regarding,612–13, 641, 647–8, 685; andproductivity, 565–6; regulation of, 646

households: electric power consumption,866–8; institutional changes in, 124

household appliances, 31, 33, 755household debt, 777–8household finance, 754–5, 759household income, 253, 272, 906;

demographic change and, 263–4household locational decisions, 526, 529,

530–3, 548household structure: changes in, 161, 177;

and poverty rates, 270households: major determinants

weakening link of residence to place ofwork, and locational outcomes,twentieth century, 531t

housing units, 150–1Houston, 133, 146, 147; industrial

specialization, 127–8; real estate boom,122; traffic problem, 151–2

human capital, 260, 586, 587, 616;Canada, 206; education and, 609–12;investment in, 585, 586; specialized,903–4, 905–6

human capital formation, 54–5, 611human relations, 945, 946human resource development, 166human resources: transformation of,

54–60; in twentieth century, 47–66Hungary, 479Hunter, Robert, 249, 267hypermarket forces: in change in spatial

patterns, 96, 97–8, 122, 133, 134,137–8, 145, 147, 151, 163, 173, 175,177

hysteresis theory, 323, 325, 1002

I. G. Farben, 853, 854, 859ideology: in labor law, 628, 690illegal immigration, 161–2, 537, 538,

539, 558Illinois, 131, 162, 647Illinois Supreme Court, 647, 662–3immigrants, 11, 54, 57–8, 63; in cities,

160, 161–2, 177; effect on wages, 552;Europe, 82, 83; informal employment,156; origins of, 535–6; sourcecountries, 505, 548; undocumented,161–2

Index 1163




immigrants (Canada), 202, 203; landpolicy and, 210–11; skill compositionof, 234; unemployment, 222

immigration, 15, 27, 60, 100, 285, 537;and child labor, 573; effect on wages,568–9; end of, 302, 303; and laborforce, 558; low-skill workers in, 258–9;“new” new, 535–9; in populationgrowth, 507; quotas in, 554, 613–14;recent, 162; source of labor, 583

immigration (Canada), 194, 195t, 197,199, 201, 203, 205, 235, 241; indevelopment process, 246–7

Immigration Act of 1965, 536, 614immigration policy, 121, 536–7, 548;

Canada, 212, 213, 234, 247immigration restriction, 2, 11, 39, 58, 83,

166, 303, 553, 569; Canada, 233; andlabor market, 554, 587; legislationregarding, 612, 613–14; national originquotas, 536; and wage structure, 603

immunization, 520Imperial Chemical Industries (ICI), 854,

855import barriers, 451–2, 455, 456import policy, 439, 450–1import restrictions, 449, 455, 950; unfair,

451–2imports, 260, 410; agricultural, 731;

autos, 434–8, 837; capital/labor ratio,412; Canada, 218, 220–1, 226;computer hardware and components,903; electronics, 446, 447; natural-resource, 414; products in, 409;semiconductors, 448; textiles andapparel, 439, 440

income: black-white differences in, 553–4;city-building and, 164; education and,611; fall in, 745, 759; farm, 694, 695,717–19, 719f, 720, 723–5, 726, 727,730, 732, 733; inequalities of, 161 (seealso income distribution); leveling of, inWorld War II, 948; and populationdistribution, 527, 528–9, 530, 533,534, 535; in poverty rate, 268; spatialtrends in, 98

income (Canada), 191, 201, 209, 215,217–18, 230, 240, 241; immigrationand, 246

income distribution, 79, 82, 251, 252,254, 255, 264, 270, 284, 286, 670,929, 954, 957, 965; egalitarian, 911;government effects on, 272–80, 1023;in Great Depression, 303; inequality in,249–50, 600; long-term, 253–4; inNew Deal, 325; taxation in, 360, 1023;war in, 262–3

income growth: and birth rate, 12;Canada, 193–4, 200, 203, 213–14,228–9, 245; and poverty, 270, 271; inrecovery, 325

income growth and poverty reduction, 251fincome inequality, 254–7, 286–7, 600;

factors underlying, 257–64; effect ofpublic policy on, 272–80, 282, 283–4;in poverty rate, 268, 271

income redistribution: and populationredistribution, 100–3; see alsoredistributional taxation

income tax, 364, 1016, 1023, 1025,1027–8, 1033, 1036, 1038, 1041–2,1046, 1056; bracket creep, 1053, 1055;mass-based, 1047–9, 1050, 1051;1940–1946, 362–3, 363t; primaryrevenue instrument, 1034; progressive,353, 1018, 1023–4; in reducinginequality, 279; revenues from, 1054;“soak-the-rich,” 1027, 1028; in taxreform, 1057, 1058; in war finance,350, 352, 353–4, 358–63, 361t, 366,367–8, 386

incorporation, 928, 992, 930, 934indentured servitude, 626, 630, 631, 633India, 536Indiana, 131, 133indices of prices received and paid by

farmers, 1910–1990, 718findustrial accidents, 553; employer

liability for, 627, 638–9industrial declines: bank failures and, 308,

309, 312industrial democracy, 665, 667, 671;

1164 Index




courts and, 681–4industrial development, 47–50; natural

resources in, 50–1industrial distribution of employees on

non-agricultural payrolls, 1900–1990,559t

industrial policy, 408, 445, 958industrial production: Canada, 214–15,

229; decline in, 301, 304, 313;movements of, 308; nineteenth century,928–9

industrial relations: professionals in, 946;rights-based, 675

industrial research, 808, 825–8, 909, 947;measuring growth of, 813–15; originsof, 809–13; role of patents in originsof, 811–13; and the universities(1900–1940), 815–17

industrial research laboratories, 808, 809,812, 828, 950, 951

Industrial Revolution, 44, 519, 520, 521,527, 535, 616, 705

industrial sector, 47, 333; and agriculturalsector, 695; technology in, 50

industrial structure, 74, 987; convergencein, 100; spatial trends in, 98

industrial unions, 582, 666industrialism: regulating social costs of,

988–95industrialization, 12, 66, 84, 97; in

Europe, 202; natural resources in, 904;nonmetropolitan, 124–5; northern,695; problems of, 989; specialtymanufacturing in, 136n110

industry(ies): applications of electric powerin, 869–76; competitiveness, 417–18;computers in, 893; government policy,449–52; growth rates of, 805; andincidence/duration of unemployment,596; intersectoral flow of newtechnologies, 805–6; protected, 456–7;universities and, 852–3; wagedifferences by, 552–3

inequality, 249–99, 549, 554, 569,599–609, 616; changes in, and changesin poverty, 271–2; chronolgy of, 284–6;

impact of fisc on 276–7; long-termtrends in, 556; measurement of, 280–4;from 1900–1946, 254–7; since 1947,252–4; public policy and, before WorldWar II, 278–9; wage structure,599–604; see also income inequality

inequality measure, 281, 283–4infant industries, 213, 408, 431n12, 434,

456, 1021infectious diseases, 31–2, 514, 516, 521inflation, 482, 494, 743, 744, 776,

785–6, 1052–3, 1054, 1055; attackson, 791, 1055; Canada, 192, 205,206–7, 228, 229, 230–1, 242, 244;Federal Reserve policy and, 791, 960;and life insurance companies, 798; low,965; 1914–1997, 746f; 1950, 370;1950–1952, 368; 1960s, 779; in NewDeal, 327; post-World War II, 774,775; and poverty line, 265; preventing:World War II, 1046; rising, 958,988–9, 996; threat of, in Vietnam War,373; thrifts and, 790; wartime, 386;World War I, 454; World War II, 365,773, 774

inflation rate, 745; and inequality, 252;and poverty rate, 270–71; and transfers,269

injunctions, 627, 653, 655, 656, 663–4,667, 669

innovation, 3–4, 519, 975; agriculture,693, 696, 708, 715–17; automobileindustry, 836, 838; in big business,938, 939; in chemicals, 849;corporations and, 928, 937–8, 941,947, 951, 952, 966; Du Pont, 946;economic impacts of, realized gradually,839n25, 859, 865; in financial services,961; general-purpose technologies in,64–5; “incubators” for, 827;intersectoral flow of new technologiesin, 805–6; marketing and, 941–2;organization and institutionalization of,808–29; process and product, 809;research in/and, 803; source of U.S.,910; see also technological innovations

Index 1165




innovation system, American, 911–12,948, 956–7, 963; strength of, 964, 966

input usage in agriculture, 1910–1990,702f

inputs: agriculture, 700–1; directinvestments in quest for, 468–9

installment credit, 754–6institutional factors: in change in spatial

patterns, 121; in urban growth, 137–8,150

institutions, 6; in innovation, 928;international, 806

insurance: securities accounts, 785; see alsolife insurance

insurance companies, 410, 748, 755, 784;and junk bonds, 789; regulation of,752–3; see also life insurance companies

intangible assets, 64, 78intangible capital, 2, 4, 40, 43, 466intangible property: doctrines of, 668;

taxing, 1022, 1026integrated circuit (IC), 879, 880, 881–5,

896Intel Corporation, 882–3, 895–6, 898,

962, 963intellectual property: diffusion of, 828;

protection of, 827–8, 911intellectual property rights, 812, 886n51,

899Interest Rate Control Act of 1966, 790interest rate differentials, regional 756–7interest rates, 481, 494, 786, 788, 1005;

and banking crisis, 307, 308, 309, 312;dollar and, 501; Fed and, 370, 760,774–5, 776; and life insurancecompanies, 798; in New Deal, 322,327; 1914–1997, 746f; nominal andreal long-term, 502f; rising, 175, 479,482, 483, 500, 996; and S&Ls, 791;smoothing, 757; during World War I,744–5

interindustry wage differential, 552–3,587–8

internal combustion engine, 3, 65, 529,849, 876; effect on rural America, 705,741; in technological change, 807,

829–45internal labor markets, 585, 586internal migration, 11, 15, 63, 121, 167;

in population growth, 522–35; andspatial distribution of population, 505

International Business Machines (IBM),448, 449, 827n18, 828, 886n51, 887,888, 889–90, 893, 897; antitrust actionagainst, 451, 902, 960, 1006;government contracts and research,950; IBM 360, 892, 893, 895, 898;IBM 370, 893; IBM 650, 888–9, 897; IBM 701, 887; PC, 898–9;research, 951; “unbundling” software,898

international economy: Canada and, 230;U.S. leadership position in, 4–5; retreatfrom, 484–8

international financial reconstruction:post-World War II, 488–92

international financial system, 463–4; U.S.position in, 488, 489, 490, 491–2

international investment position of U.S.,1900–50, 476t, 477

International Ladies’ Garment WorkersUnion, 664, 666

International Longshoremen’s andWarehousemen’s Union-CIO, (ILWU),676–7

International Longshoremen’s Association-AFL (ILA), 676–7

International Monetary Fund, 491, 496,956; Special Drawing Rights (SDR),497

international sector: and Canadianeconomic growth, 191, 192

international trade, 78, 82, 455, 734,847; and earnings inequality, 257, 260,261, 263; effect on poverty rate, 269;revival of, 907

Internet, 501, 902, 903, 963Interstate Commerce Commission (ICC),

933–4, 973, 983, 984, 999invention(s), 519–21; improvements to,

804; technical and scientific difficultyof, 715–16; U.S. firms in, 910–11

1166 Index




investment: business/housing, 173;Canada, 202–4, 205, 217, 235–6,245–6; fall in, in wars, 393, 394,398–400, 404; in human capital,905–6; infrastructure, 976; New Dealpolicy, 321, 322; and savings, 467–8,477, 493, 501; technological changeand, 805; in urban infrastructure,163–4, 165, 166, 172

investment bankers/banking, 318–19,752, 753, 763, 764, 769, 783, 784,801, 979; blamed for Great Depression,764–5, 769; and combination, 935; inNew Deal, 765, 766; transformed, 799

investment expenditures, 74, 387investment ratios: Canada, 200, 215,

216t, 236, 241investment trusts, 753Iowa, 131Iraq, 455iron ore, 51, 52, 424–6, 431, 527;

Canada, 235, 242Israel, 585Italy, 442, 490–1, 734

J. P. Morgan & Company, 475, 753, 796Japan, 74, 78–9, 345, 372, 402n98, 408,

450, 490–1, 738, 806, 827, 833;automobile industry, 432, 434–9,837–8; banks, 319; competition from,958, 959, 963, 965; computer industry,889, 900, 903; corporate income tax,1016; demand pressure, 496; economicperformance, 906; electronics industry,446–7, 448–9; exports, 121, 501;government regulation of business, 969;growth in, 66; loans to, 469; MeijiRestoration, 79; Ministry ofInternational Trade and Industry(MITI), 446–7, 448, 449, 452; postwarrecovery, 494; productivity, 70, 71;protectionism, 455; public investment,82; R&D expenditures, 820; researchin, 824; shipbuilding, 442, 443, 444;Shogunate, 79; steel industry, 424–6,425t, 427–8, 429, 430, 431, 432;

textiles and apparel, 440–1; tradepolicy, 408

jet engine, 842–3job security, 550, 551, 585, 586, 615,

616, 962Johnson, Lyndon B., 269, 275, 340, 992,

1049, 1051; tax reforms, 378; financingVietnam War, 382, 389

Johnson administration, 494, 496Jorgenson, Dale, 24, 25judicial review, 1012judiciary: and labor law, 627, 648; see also

courtsjunk bonds, 961, 788–9, 798, 799, 1006jurisprudence, 643, 644, 666

Kahn, Alfred, 997, 998Kaiser, Henry J., 158Kansas: agriculture, 733; BLS survey,

592–5, 598; Blue Sky Law, 753; high-tech region, 135; labor legislation, 647,648

Kendrick, John, 62, 63Kennedy, Edward, 996, 998Kennedy John F., 125, 275, 378, 389,

495, 496, 1049, 1051Kennedy, Joseph P., 768Kennedy administration, 494, 784Kent, Chancellor James, 633–4Kentucky, 124, 131Keynes, John Maynard, 317, 328, 491,

492, 954, 1040, 1045Keynesian fiscal policies, 954, 957Keynesianism, 1043–4, 1045, 1046, 1050Keyserling, Leon, 671, 672, 673–4Kindleberger, Charles, 309, 310knowledge: acquisition and exploitation

of, 1, 2; advances in, 28, 29, 37;contribution of advance of, to growthrate of output, 35; development anddissemination of, 41; diffusion andapplication of, 84; health and disease,11; incorporated into production, 22;practical, 72; scientific and engineering,65; search for new, 43; technological47, 49–50, 74

Index 1167




knowledge-based economic growth, 3;emergence of logic of, 44;macroeconomic growth in era of, 1–92

Korea, 429, 455, 536Korean War, 329, 333, 335, 376, 389,

404, 405, 494, 775, 842; costs, direct,337, 338–40, 341, 345, 346; costs,indirect, 347, 348, 349; financing,332–3, 351t, 366–73, 369t, 378, 386,1053; and government spending, 1014;opposition to, 382n78

Krooss, Herman E., 339, 340, 355Kuznets, Simon, 252, 255, 387, 507, 805Kuznets cycles, 165; population growth,

507; urban investment driving, 163–4

labor: benefits, 569, 570, 570f, 583, 586,615; and corporate transformation, 934;farm, 700, 701; in decline of steel andautos, 408; free exchange of, 632; gainsto, 549–50, 553–4, 555, 565–72,583–4, 615; inflows: Canada, 194; inlabor law, 625; and leadership, 453–4;in/and New Deal, 946–7, 957, 962;price of, 716; right to organize, 580,614, 626; and safety legislation, 992

labor force, 60, 550, 695; agingpopulation and, 541–2; Canada, 229;composition and sectoral distributionof, 555, 556–65; defined, 556;proportion in agriculture, 104;proportion of population in, 104

labor force participation of women, 25–6,27, 97, 510–11, 550, 556–8, 565, 571,576–9, 615, 955; Canada, 226; andearnings inequality, 259; education in,611; home appliances and, 867; andwage structure, 552, 555, 607–9;young women, 573–4, 577

labor force participation rate: componentsof growth, 17t

labor force participation rate of youngerand older females, decade change in,512f

labor force participation rates by age andsex, and fraction of women and foreignborn, 1890–1990, 557t

labor force participation rates for two agegroups of married (white) women,1890–1990, 578f

labor force participation rates of men andwomen, 1890–1990, 577f

labor force participation rates of oldermen, 1860–1980, 575f

labor force participation rates of 10- to15-year-olds and fraction working inagriculture, 1880, 1900, 1930, 573t

labor input and labor productivity growthrates: contribution to growth rate ofoutput per capita, 14t

labor input per capita, 13–18, 36, 39labor-intensity: and protectionism, 456;

textiles and apparel, 439–40, 441, 453labor law, 625–91; asymmetries in, 629;

beginnings, 1600–1860, 628–40;colonial American, 630–2; core valuesof, 684; conflicts, 1860–1930, 641–67;in early Republic, 632, 637; inEngland, 629, 630, 631; history of,625–8; postwar, 687–90; revolution in,690–91

labor legislation, 550, 553–4, 612–15,641, 645, 646–8, 668

Labor-Management Relations Act of 1947(LMRA), see Taft-Hartley Act

labor market(s), 42, 43, 83, 269,549–623; change in, 550–1, 553; andearnings prospects, 509–10; evolutionof modern, 585–8; government and,612–15; for women, 510–11

labor mobility, 74, 554, 580, 597, 827labor movement, 645–6, 651, 675, 953;

collective bargaining in, 661, 671;organizational schism, 675–6; state and,666; voluntarism, 665–7; andworkmen’s compensation, 648–9

labor organization, 326; as civil right,672; common law of, 650–2; haltingspread of, 686; labeled subversive, 688;law of, 658; social utility of, 668–9; seealso unions

labor productivity, 36, 549, 565–9, 616;advance in, 554–5; agriculture, 701–2;automobile industry, 837; measurement

1168 Index




of, 35; natural resource-intensive, 51;rising TFP in, 37–9; sickness and, 598;unions and, 584

labor productivity growth, 2, 13, 16, 43,62, 75; in agriculture, 83; internationalperspective, 68, 69; sources of, 20t,21–9, 36–7

labor quality, 24–7, 37, 40, 259labor relations: of corporations, 946–7; on

railroads, 668–9; see also employmentrelationship

labor relations policy, 672, 673, 675, 676,678, 681, 686

labor supply, 2, 76, 82; aging of, andeducational impact, 546–7; birth rateeffects, 18; Canada, 205–6; andinequality, 257–9, 263; populationgrowth and, 12–13; secular changes in,550; skilled labor, 285

Labrador, 235Lampman, Robert, 250land, 40, 148, 151, 700, 733, 741;

settlement, 37, 39land abundance, 76, 79, 583land policy: Canada, 209–13Landrum-Griffin Act, 687, 688Latin America, 84, 330n2, 331;

government regulation of business, 969;immigrants from, 505, 536; populationgrowth, 538

law: and collective action, 657–8; andcollective bargaining, 659–61; of laborstandards, 684–5; and unions, 582, 583

law of master and servant, 626, 629, 644,651, 660, 661, 667

layoffs, 589–99lead, 208, 217, 221, 234Lebergott, Stanley, 589, 590, 591Leiserson, William, 673, 678–9, 680Lend-Lease Act, 489length of life, 31, 32Leontief, Wassily, 411, 412Leontief paradox: capital/labor and,

411–12less-developed countries (LDCs), 260, 695;

defaults by, 793Liberty Bonds, 478, 749, 756

Liberty Loan Act, 476–7Liberty Loans, 354, 744, 1028, 1030liberty of contract, 639–40, 642, 645,

646–7, 653, 658, 661, 664, 666–7life-cycle effects: in income inequality,

283life expectancy, 32, 505, 547–8; in

population growth, 514–21life expectancy at birth by gender and

race, 1860–1992, 515tlife insurance, 569, 754, 798–9life insurance companies, 170, 762–3,

772–3, 774, 775, 782–3; insolvent,798

Lindert, Peter H., 254–5, 256n11, 258,259, 262, 281

liquidity: Bretton Woods system, 491,492; rush for, 760, 761, 762–3, 771;new sources of, 497–8

literacy test, 554, 613livestock production/yields, 697, 702,

710–11loans: to farmers, 732, 733; moratorium,

1038; syndicating, 771; in warfinancing, 350, 354, 355, 357, 364

local governments, 97, 1015, 1054–5;fiscal actions of, 1044–5; growth of,1035; relief programs, 1038; taxation,1025, 1026, 1036

Lochner v. New York, 647, 685London Economic Conference, 487Long, Huey, 1040long periods: aggregate output growth

over, 10; 1800–55, 8; growth in,10–11, 29, 36, 40; labor productivitygrowth, 19–21

long swings, 7–8; city-building and,165–6; labor productivity growth, 19;TFP in, 29; urban investment driving,163–4

Lorenz curves, 284Los Angeles, 122, 133, 146, 154–5, 531;

corporate headquarters in, 147;expansion of, 144; informalemployment in, 156; transportaion,148, 149

Louisiana, 131, 464

Index 1169




McAdoo, William, 352, 353, 354, 356,386, 1026, 1028–9, 1030, 1031–2,1033, 1047

McCarran-Walter Act of 1952, 536McDonnell Douglas, 445, 844; Douglas

Aircraft division, 843McFadden Act of 1927, 749, 766,

975n14; overturned, 795machine tools/machine tool industry, 34,

40, 50, 806, 831–2, 958machinery, 34, 76, 832, 951; electric-

powered, 873; farm, 697, 700; andnatural resource exploitation, 50

McKinley, William, 470McKinley Tariff, 472Maddison, Angus, 67–8, 543, 545Maine, 129, 130, 795; BLS survey, 592–5,

598; Supreme Court, 644n14mainframe computer, 893, 894, 897, 898,

903management, 61, 64, 136, 466, 551, 563,

569, 969; compensation, 765; courtsand, 637–8; and leadership, 542–3;steel industry, 408, 428, 429, 438, 439;and wage increases, 454

manhours per capita: decomposition ofgrowth rate, 14t

Manifest Destiny, 209, 929Manitoba, 235manufactures: exports/imports, 409;

traded for other manufactures, 409–10manufacturing, 52, 806; in cities, 148,

154–5; comparative advantage in skill-intensive products, 414; decline in,131–2, 263, 285; educationalattainment of employees, 56–7; electricmotor in, 873; foreign finance in,466–7; government regulation, 977;high-tech industries, 134, 157; hours ofwork in, 570–1; incorporation, 931;and labor law, 637; layoffs/terminations,596; location of, 527; mergers in, 932,933; New England, 172; nineteenthcentury, 44–5, 928; Northeastspecialization in, 99; petrochemical-based industries, 53; real annual

earnings, 1900–1991, 566f; real annualearnings for lower-skilled workers,1900–1924, 568f; rise and fall of U.S.leadership in: case studies, 418–49;shift from, to service, 260; in South,122; spatial redistribution of, 115;specialized regions, 128–34; structuralchange in, 809–11; technologicalinnovations in, 47–8, 527;unemployment in, 592–5, 598; andurban growth, 140; wages, 259, 565–8,566f, 568f; women working in, 578

manufacturing (Canada), 203, 214–15,239–40; impact of First World War on,207, 208; postwar, 237–9; in wareconomy, 226

manufacturing employment, 114, 131–32,558, 721

manufacturing regions, 98, 114, 118,122–34, 136, 176; institutional factorsin, 121; and international context,120–1

manufacturing sector, 263; Canada, 202;capital intensity of, 46; capital-outputratio, 60; high throughput, 60, 61;spatial redistribution of, 115; totalfactor productivity growth in, 61–3

margin requirements, 768, 770, 771, 774Maritime provinces (Canada), 221, 222market(s), 743, 850, 977; agriculture,

727, 732; asset and liability, 979;chemicals, 846; farm sector as, 694,695; international perspective, 77–8;national, 50, 937, 971–5; and flow offunds, 787–9; segmented, 952, 987

market forces: in agriculture, 694, 739; inchange in spatial patterns, 96–7, 98,118–20, 124, 134, 137, 150, 151, 177;and gains of labor, 584; in inequality,287; and poverty rate, 278; andseasonality, 599

marketing, 60, 941–2, 947, 952, 1038market-sharing agreements, 810, 813,

977Marshall Plan, 262, 371, 402n100,

489–90, 956, 1050

1170 Index




Maryland, 131, 647, 792mass production, 47, 48, 51, 65, 77, 78,

555, 931; and mass distribution, 936,937

mass production methods, 54, 158; inauto industry, 830, 835; in electricpower, 866; Ford and, 833; in housing,150; international perspectives, 77

Massachusetts, 129, 162, 795; laborlaw/legislation, 628, 630, 631, 637–8,647, 648–9, 662, 663; StatisticsBureau, 249

Massachusetts Institute of Technology(M.I.T.), 135, 816–17, 841, 852–3,887, 890, 893, 940; School of ChemicalEngineering Practice, 853

master-servant relation, 627, 628–9, 631,632, 640, 654, 682, 691; in the courts,634–5; in industrial society, 637; in thetreatises, 633–4; see also law of masterand servant

material well-being: average level of, 32,250; during wars, 394n91, 400, 401–4

Means, Gardiner C., 953Means to Prosperity, The (Keynes), 1040meat packing industry, 47, 809, 937mechanization, 527; in agriculture, 76,

114, 123, 697–700, 704–8, 715, 716Medicaid, 274n28, 275Medicare, 18, 275, 277, 1049, 1054medical practice/medicine, 33, 34, 48,

520, 521, 861Mellon, Andrew, 1033–4, 1051Merck & Co, Inc., 861, 862, 949, 952,

964merger movement, 351, 588, 1034; see

also great merger movement, themergers, 810, 927, 987; aircraft industry,

839–40; horizontal, 810–11mergers and acquisitions, 932, 961, 963;

banks, 779–80, 795, 799; see also greatmerger movement, the

metallurgy, 844, 869metals, 951, 958; Canada, 208, 217, 221metropolitan areas, 140, 146, 152;

corporate assets controlled, 147;manufacturing employment, 131, 133;manufacturing in, 155–6; populationin, 93; poverty in, 160–1; services in,157

Mexico, 239, 536; debt crisis, 796;immigrants from, 537, 538, 614;manufacturing relocated to, 121

Michigan, 99, 131, 133, 465; BLS survey,592–5

microelectronics, 819n14, 823, 827–8,911

microprocessors, 448–9, 882; and rise ofcomputer software industry, 895–903

Microsoft, 449, 898–9, 963, 964Middle Atlantic division, 103, 132, 696middle class: and development of public

sector, 1019, 1035; and mass taxation,1048, 1058; and Social Security, 1041;in war finance, 1029–30

Midwest, 57, 76, 93, 99, 176, 832;agriculture, 118, 120, 696; banks,banking, 750, 758; cities, 146, 177,522; manufacturing, 96–7, 120, 125,155; manufacturing employment, 114,115; per capita incomes, 114;population, 100; specialized industries,128, 131, 132–3; urban structure,95–6; urbanization, 143; wage-laborrelations, 123

migration, 194; Canada, 194, 232–4; inpopulation growth, 505; in populationredistribution, 525; see also internalmigration

military: and computer industry, 886,887, 890–2; and electronic industry,880–1, 882, 884–5; procurementpolicies, 884; and R&D, 843, 948

military expenditures, 329, 331–2, 333,352

military goods and services, 333, 337, 450military-industrial complex, 334, 941military-industrial-university complex,

959mineral resources, 75; exploitation of, 51,

52

Index 1171




minerals (Canada), 208, 235, 242, 245;exports, 191, 234

minicomputer, 136, 892–3, 894, 898,903

minimills, 432, 869–70minimum wage, 604, 614, 685mining sector: Canada, 193, 222, 239–40;

total factor productivity, 62Minnesota: high-tech region, 134–5Mississippi, 76, 103, 123, 465Missouri, 131, 647, 648monetary contraction, 312–13, 328,

1037–8monetary expansion, 327, 328, 775Monetary History of the United States

(Friedman and Schwartz), 306, 483monetary policy, 82, 83, 316–17, 393n90,

402n98, 463, 479, 494, 497, 500, 541,775–6, 801, 954, 1032; Canada,206–7; contractionary, 304, 305, 759,760; expansionary, 500; externalconstraints on, 480–4; Federal Reserve,328, 487, 767, 775; and GreatDepression, 484–5; and inflation, 786;in New Deal, 322, 327; restrictive,1056; of F. D. Roosevelt, 1040

money creation, 785; in war financing,350, 355, 356, 357, 363, 365, 366,367, 379, 385, 386; World War II, 773

money markets, 771, 774, 1038money supply, 83, 310, 312, 322, 379,

472, 482; bank failures and, 307, 308;Canada, 206, 218, 219–20, 228, 229;gold losses and, 485; expansive, 744,1040; growth in, 365, 498, 500

“money trust,” 319monopoly, 929, 930, 931, 938, 951, 976,

986, 987, 1023, 1024, 1041; attack on,973, 977, 1025; and regulation, 1012;telephone business, 981, 982

monopolization, 933, 946Montana, 120, 131, 174Morgan, J. P., 317, 932–3Morgan Stanley & Co., 766Morgenthau, Henry, Jr., 358, 364, 366,

1041, 1042, 1047mortality, 11, 505, 514–17, 518, 521,

547–8Mortality Revolution, 518, 519–21, 545;

in Europe, 538mortgage market, 790, 791; federal

intervention in, 769–70; governmentguarantees in, 788

mortgages, 750, 754–6, 762; S&Ls, 781;see also home mortgages

Motor Carrier Act of 1980, 983, 999Motor Vehicle Safety Act, 991Mountain division, 171, 696; bank

failures, 174, 750; population, 100,103

Muller v. Oregon, 613, 685multidivisional (M-form) corporation,

949–50, 956, 966multinational corporations, 83, 949–50,

956mutual funds, 775, 778, 782–3, 784,

801; and junk bonds, 789mutual savings banks, 170, 747, 750,

775, 781, 787

Nader, Ralph, 990, 991, 996National Advisory Committee on

Aeronautics (NACA), 336, 817–18,839

National Aeronautics and SpaceAdministration (NASA), 336, 818, 881

National Association of Securities Dealers(NASD), 768, 784, 799, 800

national banks, 744, 750; branchingprivileges, 749, 767; foreign loans,478–9

National Defense Education Act, 824n16National Income and Product Accounts

(NIPA), 379, 569National Industrial Recovery Act (NIRA),

321–3, 324, 326, 327, 580, 685, 977,985, 1038; section 7(a), 670, 671–2,674, 978

National Institutes of Health (NIH), 821,824n16, 825, 862, 865

1172 Index




National Labor Relations Act, see WagnerAct (National Labor Relations Act)

National Labor Relations Board (NLRB),323, 326, 674, 675, 676–7, 678, 680,681, 682, 684, 686, 687, 688, 946,962

National Origins Act, 553, 613national policies: Canada, 209–13, 216National Policy (Canada), 211, 237National Recovery Administration (NRA),

321, 323, 324, 326, 327, 458, 685,977–8; cartel program, 946; codeformulation and administration, 671;Supreme Court’s invalidation of, 674

National Research and DevelopmentCorporation (NRDC), 889n54

National Science Foundation, 824n16;computer science funding, 890, 891f,902

national security: share of GNP spent on,333

National Security Agency (NSA), 336National Security Council: NSC-68,

339n23, 367, 372national security expenditures, 340,

341–6, 387, 404; Cold War, 402;Korean War and Cold War rearmament,366–73; World War I, 389–93; see alsodefense expenditures

natural gas, 953; Canada, 191, 235;deregulation, 1001–2; regulation of,1011, 1012

natural resource abundance, 41, 45 75,76, 415, 912, 930; exploitation of,50–3

natural resources, 3, 47–66; incomparative advantage, 407, 412–14,416, 906; government regulation, 977;economic value of, 904–5; laws inprotection of, 988; in/and technologicalchange, 846, 851, 904–5, 911

natural resources (Canada), 198, 208, 241,245; exploitation of, 199; export of,191; foreign control over, 236–7

Nebraska: labor legislation, 647net migration of young adults and elderly

population, 1985–1990, 532fnet national product (NNP) deflator, 394,

398, 400n96Netherlands, 66, 70, 485, 488Nevada, 761New Deal, 97, 152, 159, 287, 316, 317,

366, 457, 627, 686, 1050, 1051;banking and finance in, 743, 765–7,792, 795–6; collective bargainingpolicy, 628, 670–1; consequences of,770–3, 1049; and corporate economy,945–7; expansion of public sector in,1038–9, 1040, 1044, 1045–6; farmsupport programs, 735; farm policies,123; first, 317–25; fiscal policy, 954;government spending, 1014; grants-in-aid, 1054; growth of government in,1015; labor law, 658, 664; labor policy,684–5; and organized labor, 957, 962;rebuilding financial system in, 763,764–73, 786, 801; reform in, 990;regulatory policy, 975–88; regulatorypolicy: breakdown of, 995–1008;regulatory regimes, 971, 988, 989;restricted competition in, 787;securities markets in, 767–9, 800

New England, 100, 103, 114, 440;agriculture, 696; building boomcollapse, 171–2; industrial production,928–9; labor law, 630, 631; specializedindustries, 128–31, 132

New Hampshire, 129, 130New Immigration, 538New Jersey, 131, 162, 653“New” New Immigration, 535–9new private nonfarm dwelling units

started and change in number ofnonfarm households by geographicdivision, 1920–1950, 168t

New York (state), 131; Armstronginvestigation, 752; 1817 bond issue,464; immigrants in, 162; laborlaw/legislation, 628, 635, 647, 649,652–3, 662; life insurance guaranteesystem, 798; public utility commission,974

Index 1173




New York City, 122, 131, 152, 267;bonds, 464; corporate headquarters in,146–7; informal employment in, 156;international financial center, 498;manufacturing, 155; population, 93;poverty in, 160; stock market, 218,473

New York Curb Market, 753–4, 784n21New York Fed, 315, 316, 758, 759, 760New York Stock Exchange (NYSE), 744,

753–4, 774, 783, 789, 800; Rule 394(later Rule 390), 784–5, 800

New Zealand, 585, 738nickel, 208, 217, 221, 234nineteenth century: American economy’s

development path in, 44–7; birth rate,12; Canadian economic growth in, 199;capital gains in economic growth,163n225; cities, 96; contrast withtwentieth, in macroeconomic growth,1–2, 3–4, 43; defense expenditures,331; economic enterprise in, 928–30;fluctuations in, 7; growth rate of outputin, 34–5; labor law, 628–9, 632; labormarket in, 585; labor productivitygrowth, 19, 22–3; legacy of, 65; publicsector in, 1020–1; unions in, 580–2,583; unemployment in, 597; warfinancing in, 386; wars, 336

Nixon, Richard, 152, 275, 382, 430, 497,992, 993, 1001, 1049

Nixon administration, 276, 498, 785–6NLRB v. Jones & Laughlin, 682nonmarket forces: in change in spatial

patterns, 96, 97, 98, 121, 123, 132,134, 137–8, 150, 177

Norris-LaGuardia Act, 582, 669–71North American Free Trade Agreement

(NAFTA), 239North Carolina, 121, 134, 144; Research

Triangle, 135North Central division, 100, 124, 153,

154, 164, 711North Dakota, 733North Korea, 367, 372, 389Northeast, 93, 115, 164, 176; agriculture,

696; bank bailouts, 794; cities, 146,177, 522; industrial specialization, 99;manufacturing, 96–7, 120, 131, 132,154, 155; manufacturing employment,115; per capita income, 114;population shift from, 100; suburbs,153; urbanization, 140; wage-laborrelations, 123

northern farm population and number offarms, 720t

nuclear power, 955, 1002, 1009, 1012nylon, 826n17, 857, 859, 952

occupation(s), 74, 80–1; andincidence/duration of unemployment,596; and wage structure, 601

occupational distributions of labor force,558, 560t, 561–2t, 564–5; andincidence of unemployment, 592

occupational distribution of non-farmlabor force, by sex, 1900–1990, 561–2t

Occupational Safety and Health Act of1970, 689

Ocupational Safety and HealthAdministration (OSHA), 553, 988,991, 992, 1009

Office of Comptroller of the Currency,979, 1009

Office of Management and Budget(OMB), 1049

Office of Scientific Research andDevelopment (OSRD), 819–20

Office of Technology Assessment, 827Office of Thrift Supervision (OTS), 792Office of War Information, 1048Ohio, 131, 133, 792; labor law/

legislation, 647, 663; “superior servant”doctrine, 639

Ohkawa, Kazushi, 72–3oil, 125, 127–8; Canada, 191, 234–5,

242, 245; exports/imports, 409, 410,414

oil prices, 120, 121, 128, 241Oklahoma, 53, 128, 144Old Age, Survivors, and Disability

Insurance (OASDI), 269, 274, 280

1174 Index




Old Age and Survivors Insurance (OASI),274, 277

oligopoly, 938, 942, 947, 951, 952, 976,1012

Olson, Mancur, 458, 738Ontario, 208, 213, 221, 239OPEC, 242, 499, 996, 1001, 1002open-hearth steelmaking technology, 872Open Market Committee, 481, 484, 486,

767open market operations, 481, 482, 484,

485, 486, 488opportunity costs: Cold War, 403t; in war

financing, 386–405Order in Council provisions (Canada), 225Oregon, 613organic chemical industry, 48, 846, 847,

854Organization for Economic Cooperation

and Development (OECD), 455, 546,555, 820

organizational innovation, 37, 41, 43output, 6; farm, 700; see also per capita

outputoutput growth, 7, 9–13; developments in,

36–7; reformed measures of, 35;measurement failures, 29–35

output growth rates of national economyand U.S. private domestic economy,1800–1989, 8t

output per hour and per worker, U.S.versus Britain and Germany, 1935–39,433t

output structure: Canada, 214–15over-the-counter market (OTC), 784, 789,

799, 800

Pacific division: agriculture, 696;population, 100; urbanization, 140,143

Pacific Stock Exchange, 789parity prices: agriculture, 731, 732partnerships, 928, 929, 938Pasteur, Louis, 11, 520, 861Patent Office, 812patents, 809, 812; licensing, 812–13,

854; role in origins of industrialresearch, 811–13

payroll tax, 1041, 1048, 1051peacetime economy, transition to (Canada),

229–30Pecora, Ferdinand, 319, 764Pennsylvania, 125, 131, 162, 464; labor

law/legislation, 647, 649pension funds, 775, 778, 784, 787,

796–7; and junk bonds, 789pensions, 472, 569, 586, 615, 782–3People’s Republic of China, 367per capita income, 40–1, 78, 160, 528–9;

convergence/divergence in, 46, 100,103–4; population growth and, 543,544, 545; in population redistribution,526; spatial distribution of, 114, 122

per capita income in geographic divisions,102t, 105t

per capita income of U.S. farm populationrelative to non-farm population,1910–1983, 719f

per capita output, 545; Canada, 195, 197;growth of, 1, 5, 6, 7, 9–13, 36, 37, 39,43; international perspective, 66–7, 69;total factor productivity as source of, 2

percentage of farms reporting selectedlivestock and crops, 1910 and 1982,725t

petrochemicals, 2, 127, 128, 819n14,846, 851, 856, 859

petroleum-based chemicals industry,849–56

petroleum/petroleum industry, 2, 53, 75,741, 807, 859; automobile and, 836;code of fair competition, 985;deregulation, 1001–2; exports, 234–5;R&D, 813, 815, 817

petroleum refining industry, 849–50;computers in, 893; growth in size ofsingle cracking units, 851f

pharmaceuticals industry, 860–5, 904,951

Philadelphia Stock Exchange, 789picketing, 646, 650, 653, 654–5, 687;

common law of, 651–2, 656

Index 1175




Pittsburgh, 93, 125, 131, 133, 145, 147Plains states, 103, 104; agriculture, 118,

120; bank failures, 174plastics, 854–6, 855t, 858, 859Poland, 120, 357, 479political attacks on corporations, 943–5political culture: impact of experts on,

945political economy, 929, 965; of

agricultural subsidies, 737; change in,945, 953; classical liberal, 641; of long-run growth, 247; neo-conservativeassumptions about, 1018; of protection,456–7; tax policy in, 1021

political interests: and collectivebargaining, 670; and deregulation, 996;and government regulation, 971, 976,979

pollution, 430, 431, 871–2, 1011polyethylene, 855–6polymer chemistry, 854, 856, 858–9, 911poor (the), 100, 284, 456; see also povertyPoor’s Manual of the Railroads of the United

States, 466population: Canada, 191, 194, 195t,

232–4; effects on economy, 540–2;effects on economy: historicalexperience, 542–7; farm, 693, 697,719–21; by geographic section anddivision, 1900–1990, 101t;geographically dispersed, 548, 910;redistribution, 166–7; regionaldistribution, 100–3; size of, andtechnological change, 906; spatialtrends in, 98; urban share of, 138,139t, 140

population aging, 505, 518, 521, 539;effect on economy, 540, 541–2

population census, 556, 574, 578, 579,592, 595, 611–12

population distribution between rural andurban areas, 1790–1990, 523t

population growth, 9–13, 37, 303,505–48; boom and bust pattern of,505–7; Canada, 195, 199, 229, 241;and dependency burden, 544–5; effecton economy, 540–1, 543–4; fertility in,

505–14; immigration in, 162, 537–9;internal migration in, 522–35; laborforce growth and, 13, 15; lifeexpectancy and health in, 514–21;magnitude of projected declines in,543–4; spatial distribution in, 522–35

population growth by component ofchange, 506f

population living in suburbs, 1900–1990,144t

Populists, 487, 1023poverty, 152, 249–99, 400; absolute, 267,

268, 281, 284; Appalachia, 126, 128;Canada, 217; cyclical variation in, 268;effect of public policy on, 272–80; farmfamilies, 730; measurement of, 280–4;in North, 695; record of, 264–8;relative, 267, 284; in suburbs, 153;urbanization of, 98, 114, 160–1

poverty line, 226–8, 271, 280poverty rate, 250, 265, 266f, 267, 268;

behavior of, 268–72; economic growthand, 285–6

Prairie provinces (Canada), 210, 213,217–18, 221, 223

price controls, 367, 373, 386n81, 394,745, 785–86; effect on steel industry,430–1; oil sector, 1001, 1002; inWorld War II, 360, 365, 774, 948,1046

price deflator(s), 30, 394, 398, 400n96price fixing, 810, 932, 979, 987price increases: under NIRA, 321, 322,

327price support programs: agriculture, 733,

735–7, 739prices, 757, 759, 976; regulation, 987;

agricultural/farm, 717–18, 718f, 726,727, 730, 732, 733, 739, 763

prices, money supply, and theunemployment rate (1951–1993)(Canada), 243t

private domestic economy, 8–9, 10; crudeTFP growth in labor productivitygrowth, 23t; 1800–1989: contributionsof labor input and labor productivitygrowth rates to growth rate of output

1176 Index




per capita, 14t; 1800–1989:decomposition of growth rate, manhoursper capita, 14t; labor productivitygrowth, 1800–1989, 20t; relativeimportance of sources of growth, 38t;total factor productivity, 62

Private Property and the Modern Corporation(Berle and Means), 953

private sector: in innovation system,956–7; investment in agriculturalresearch, 715; in regulation, 975;unionization in, 580–5, 616

process technologies, 848, 856, 859producer subsidies as a percentage of total

value of farm output, 1990, 738tproduct and process innovation, 942, 951,

952, 966; automobile industry, 835,836–7; German approach to, 852

product quality, 137; auto industry, 437,438, 992

production: in cities, 153–62; geographicconcentration of, 529; governmentcontrol of, 317, 321–4, 367, 732; byinterchangeable parts, 47, 831; large-volume, 831, 849–50; mechanized,527; of military goods and services,337; quotas: World War II, 948;“roundaboutness” of, 45, 47; small-batch methods, 156; spatialdistribution of, 156–7

productivity, 84, 417, 1056; autoindustry, 432–43, 435–7, 438–9; andcatch-up and convergence, 69–71; inelectronics, 445–6; farm, 693, 694;foreign borrowing in, 501–2;international convergence of, 46;process research and engineering in,952; quality, 453; of schoolingexperience, 416; in shipbuilding, 442,443; in steel industries, 420–2, 423,428–30, 431–2; in textiles and apparel,440–2; U.S. leadership in, 5, 423; seealso labor productivity

productivity changes in selected farmproducts, 703t

productivity gains/growth, 7, 937, 958,965, 996; Canada, 197–8; electric

power, 875–6; international perspective,74–84; new technologies in, 805–6;northern agriculture, 700–17; potentialfor, 71–4; realization of potential, 71–4,82–4; social capability in, 80; and wageinequality, 261, 262

professionals, 954; in corporate economy,928, 934–6, 938, 942, 947, 948, 951,956, 957, 958, 961–2, 966; demandfor, 942–3; managers, 942–3, 950

Progressive Era/Progressives, 612, 664,764, 947, 959, 972; corporateliberalism in, 945; reform initiatives,988

progressive movement, 1025property rights, 687, 742; of employers,

651–2, 653, 655, 657, 658, 667, 691;in jobs, 585; redefinition of, 667–8

property tax, 157, 1022, 1026, 1035,1036, 1044; revolt against, 1054–5;universality and uniformity, 1022

protectionism, 408, 449, 453, 454, 455,456–7, 458, 501, 1021; agriculture,734, 738; auto industry, 433, 437, 438;Canada, 215, 220–1, 237, 238; effectsof, 450–1; ferrous metals, 443;electronics industry, 447; shipbuilding,442, 444; steel industries, 419–20,424; textiles and apparel, 439

provinces (Canada): fiscal problems,223–4; responsibility for social welfare,223; taxing power of, 227

Prudential (life insurance company), 754public finance, 1035, 1059; bipartisan

consensus regarding, 1051–2public health movement, 520public policy: civil rights, 954–5;

regarding corporations, 933–4, 959–60;economic growth in, 82; effect onincome inequality and poverty, 272–80;experts in, 944; impact on povertysince World War II, 277–8; andinequality/poverty, 250, 278–9, 286;toward labor, 667, 672; and populationgrowth, 548; and populationredistribution, 526

public relations, 944, 945

Index 1177




public sector, 160, 956–7, 958, 1013–60;bipartisan government, 1946–1980,1049–55; consolidation of 1920s,1032–6; expansion of, 1059–60;nineteenth century, 1020–2; politicalprocess in development of, 1017–20;unionization in, 580–5; World War Iera, 1026–32

public services, regulation of, 973–5public transit, 148, 151–2, 533public utilities sector, 47, 62, 933–4Public Utilities Holding Company Act,

982–3public works, 148, 1021, 1044; Canada,

223; foreign finance in, 464, 501Public Works Administration (PWA),

158, 1044pulp and paper (Canada), 191, 208, 234,

239, 242, 245Pure Food and Drug Act, 861

Quebec, 213, 221, 239

race, 123, 158, 552, 604–6racial discrimination, 152, 156, 177radio, 445; effect on farm life, 711, 713railroad, invention of, 528railroad construction, 166, 173; foreign

finance in, 464, 465–6, 501; and longswings, 165

railroad industry/railroads, 2, 3, 34, 39,64, 65, 155, 807, 853; Canada, 193,199, 200, 209–13, 215, 291;consolidation of, 60; deregulation,999–1001; electronics in, 878;incorporation, 930–2; regulation, 934,983, 1024; and urban changes, 148

railroad labor, 668–9Rasmussen, Wayne, 704rate-of-return regulation, 933, 944, 953,

974, 983rationing, 367, 394; in World War II,

146, 360, 364, 774raw materials, 44, 52, 807; prices of,

309–10; steel industry, 424–6RCA, 887, 888, 951, 959, 963; “Spectra

70” series of computers, 892n58Reagan, Ronald, 152–3, 275, 276, 384,

500, 736, 960, 1007, 1056; budgetcutbacks, 127; fiscal policy, 305

Reagan administration, 273, 277, 404,438, 786, 791, 795, 993, 996, 1006;deregulation, 1008–10

Reagan “revolution,” 1055–8real bills doctrine, 744, 758n7, 765, 767real estate, 122, 172, 465, 755, 781,

1026, 1036; and financial instability,173, 174, 175

recessions, 269, 382, 497, 743, 758, 759,776; 1920–1921, 458; 1937, 327–28,770; 1937–8, 1043; 1981–2, 786,1005; 1981–2: effect in Canada, 232,242, 244; post-World War I, 745; post-World War II, 774; unemployment in,590–1

recipient unit: in measurement of povertyand inequality, 281, 282–3

Reciprocal Trade Agreements Act of1934, 1021, 1050

Reconstruction Finance Corporation(RFC), 314–15, 487, 761, 771, 1038

recovery, 311, 327, 328, 1044; corporatetransformation in, 964–5; throughdeficit spending, 1040, 1045;expectations of, 321; failure of, 1043;lack of full, 326; monetary expansionin, 327; New Deal in, 318, 325; startof, 313–17; tax policy and, 1041

redistribution of income and wealth, 277;federal government in, 1023; in laborlaw, 672–3, 677, 679; politics of, 1026;and protectionism, 458

redistributional taxation, 356, 554,1027–8, 1033, 1040–1, 1043, 1046,1051, 1059

refined TFP, 28, 29, 37, 39refrigeration, 868, 937region(s), 95, 98; Canada, 213, 221, 222,

245; and economic growth, 162–76;economic integration, 46; and financialinstability, 173–6; high-tech, 134–8;industrially specialized, 98, 99–100,

1178 Index




137; rise and fall of, 99–138; structuralchanges, 93–190; and wage structures,552, 601

regional contrasts (1910–1990):agriculture, 696–700, 698–9t; inurbanization, 138–40

regulation, 326, 933–4, 945–6, 947,969–1012, 1024, 1025; of agriculture,694; American-style, 1012; ofbanks/banking, 743, 748, 749, 765,779; competitive national markets,971–5; environmental protection, 1049;financial system, 743, 773, 788, 801,802, 1039; of foreign loans, 479; ofholding companies, 782; of lifeinsurance business, 798; New Deal,975–88; New Deal: breakdown of,995–1008; and public relations, 944–5;of securities markets, 768, 784; socialcosts of industrialism, 988–95;theoretical approaches to explaining,969–71; of thrifts and credit unions,769–70

Regulation Q, 175, 766, 779, 790, 1005regulatory agencies, 326, 933–4, 988,

991; capture of, 996regulatory budgets by agency, 1970–1988,

1010tregulatory failure, 997, 1005regulatory laws, challenge to, 991regulatory policy: evolution of, 971; New

Deal, 975–88Reichsbank, 311, 315, 483relative hourly wages and salaries per

production worker, selectedmanufacturing sectors and countries,1955–1995, 436t

relative income theory, 508–10, 513relief payments (Canada), 222, 223–4Reorganization Act of 1939, 1045Republican party/Republicans: control of

federal government, 1032–3, 1034,1035; fiscal policy, 1027; high-tariffsystem, 1021, 1022, 1025, 1032; taxideology/policy, 1022, 1051, 1057

research: in aerodynamics, 841–2;

agricultural, 714–15, 729; chemical,845–6; corporations managing, 951–2;federal support for, 948; in-house,938–9, 940–1; in/and innovation, 803;institutionalization of, 908–9; andteaching, 824; see also industrialresearch

Research and development (R&D), 49, 74,82, 115, 134, 136, 807n1, 908, 909;aircraft industry, 845; biomedical, 862;chemicals industry, 847; computerscience, 890, 891f, 902; contractualsupport for, 948; defense-related,821–3; federal expenditures for, 818;federal role in, before 1940, 817–18;funding for, 818, 819; impact of WorldWar II on structure of, 818–20;industry, 809, 825–8, 845, 939–41,947 (see also industrial research); in-house, 808, 809, 810, 811; investmentin, 2, 83; military, 843, 884, 891;organization of, 912; postwar spending,820–1; postwar structure, 820–8;semiconductors, 882

Research and development (R&D) system,964; antitrust policy, 878–9;institutional structure of, 912;structural transformations in, 808,828–9; U.S. position in international,210–11; World War II transformationof, 210

reserve requirements, 355, 972, 979;altering, 767, 770, 774; commercialbanks, 750

residential construction, 163, 165, 167,169, 170–1, 173

resource abundance/endowment, 72, 929,869; expanded by electricity, 873; andtechnolgical change, 807–8, 903–4; seealso natural resource abundance

restraint of trade doctrine, 652, 653, 655,656, 659, 665, 933, 946

retail businesses, 60–1, 985–6retirement, 574, 575–6, 614, 615retirement population, 531–3, 534Revenue Act of 1916, 1028

Index 1179




Revenue Act of 1918, 353Revenue Act of 1932, 771, 1038Revenue Act of 1935, 1040, 1042Revenue Act of 1937, 1042Revenue Act of 1938, 1043Revenue Act of 1941, 358, 360Revenue Act of 1942, 359, 360, 361Revenue Act of 1943, 361, 362, 1048–9Revenue Act of 1978, 1055Revenue Acts, 1027; 1945 and 1948,

370; war financing, 367–8; World WarII, 357, 358, 366

revenue system, 1023, 1026, 1053–4;income tax in, 1056; transformation of,during national emergencies, 1059

Rhode Island, 121, 131, 630rich (the), 249; consumption, 262; share

of national income, 250risk/risk taking, 773, 794, 979roads: and farm life, 711, 712–13; see also

highways/highway systemRobinson-Patman Act, 61, 986, 987Romer, Christina, 589, 590–1Roosevelt, Franklin D., 122, 158, 313,

315–16, 317, 321, 327, 821, 866, 986;farm policies, 732, 734; First HundredDays, 316, 317–18; fiscal policy,1039–40, 1043–4, 1050–1; GreatDepression, 484, 486, 487, 761, 767,768; New Deal, 1038–45; regulatorypolicy, 976–7; Second New Deal,325–6; tax policy: World War II,1046–9; World War II financing, 345,357, 358, 359, 360–1, 364, 366

Roosevelt (F.D.) administration, 279, 317,678, 1049; antitrust policy, 946; andREA, 713; regulatory policy, 981–2,984–5; taxation, 1043, 1045; WorldWar II, 358, 359, 366, 1046

Roosevelt, Theodore, 470, 933, 946,972–3

Rosenberg, Nathan, 51, 825Rosovsky, Henry, 72–3Royal Commission on Dominion-

Provincial Relations (Rowell-SiroisCommission), 224–5, 227, 229

rubber, synthetic, 819n14, 856–7, 858,859

rubber consumption, natural andsynthetic, 858f

rubber industry, 813, 815rural areas: electric consumption, 866;

population growth, 524–5; poverty,123; revival of, 533, 534–5

rural depopulation, 522, 525, 529rural electrification, 326, 712, 713Rural Electrification Administration

(REA), 379n73, 713, 866rural-urban migration, 15, 123–4;

Canada, 198, 245Russia, 469; credits extended to, 475;

protectionism, 454; steel industry,419–20; threat from, 339; see also SovietUnion

rust belt, 604, 964

safety: and household locational decisions,530; motor vehicle, 991–2; see alsohealth and safety regulations

St. Louis, 96, 145, 146, 149, 159sales taxes, 359, 360, 1016, 1025, 1033,

1035–6, 1044, 1048, 1051, 1054San Francisco, 146, 147, 151, 154–5, 531Saskatchewan, 223savings: generated by agricultural sector,

695; and investment, 467–8, 477, 493,501

savings and loan associations (S&Ls), 170,175, 748, 755, 769, 770, 773, 774,775, 778; bailout of, 176; failures, 410,1005–6; florescence and collapse of,790–2; in Great Depression, 762; andjunk bonds, 789; mortgages, 772; riseof, 781–2; share of assets, 787

savings banks, 175, 750savings rates, 364, 365scarlet fever, 11, 514, 521Schumpeter, Joseph, 811, 936Schwartz, Anna Jacobson, 304, 306, 307,

394, 398, 483Schwartzchild & Sulzberger, 937science, 37, 809, 817, 948; applied to

1180 Index




agriculture, 708–9, 742; basis ofSecond Mortality Revolution, 521; andclinical applications, 825; economic roleof, 804, 908; federal support for,817–18; in pharmaceuticals, 861; andtechnology, 56, 83, 520, 807; U.S.leadership in, 806, 910, 911

Science: The Endless Frontier (Bush),818n13, 821

Science and the Modern World (Whitehead),803

science-based industry, 48, 938scientists and engineers, 49; employed in

industrial R&D, 813–14, 814t;training by public universities, 817

seasonality, 550, 551, 589–94, 598–9614–15

Second Industrial Revolution, 521, 529,535

Second World War, see World War IIsecondary school enrollment and

graduation rates, 1890 to 1975, 610fsecondary schooling, 26, 27, 569, 607,

611; and child labor, 573, 574; inEurope, 81–2; and labor forceparticipation of women, 579; returnsto, 612

sectoral composition of new Britishportfolio investment in U.S.,1825–1914, 467t

sectoral distribution of labor force, 555,556–65

securities, 465, 475, 768; boom times for,752–4; regulation of, 753; repurchaseagreements, 779; secondary markets,753, 754; see also government securities

Securities Act of 1933, 768, 772, 783,978, 981

Securities Acts Amendments (1964), 784,799

Securities and Exchange Commission(SEC), 768, 769, 772, 774, 783, 784,785, 789, 799, 800, 945–6, 982, 1039

Securities Exchange Act of 1934, 768,772, 978; Maloney Amendment, 768

securities industry, 771–2, 796, 978;

banks in, 749–50; regulation of, 981Securities Investor Protection Act, 785securities markets, 748, 771, 783–4, 796,

799; disclosure, 768, 772; in GreatDepression, 763; in New Deal, 767–9,800

segregation, 149–50, 153, 160self-employed as percentage of nonfarm

males by age, 563tself-employment, 563–4semiconductors/semiconductors industry,

447–8, 451, 828, 838, 878–85, 892,896, 902; commercial uses, 881–2

servants, 631, 632; employees as, 638–9;local law of, 633; statutes regulating,629; see also master-servant relation

service economy, urban, 134–8service sector/services, 154, 284, 558,

565, 927, 960–1, 964; Canada, 231,239–41; materials component of, 76; inmetropolitan areas, 157; and populationdistribution, 530; share of, 154, 155;shift from manufacturing to, 114, 260;see also goods and services

Servicemen’s Readjustment Act of 1944,770

sharecropping, 99, 100, 103, 122, 123,720

Sherman Antitrust Act, 451, 582, 652,654, 655, 659, 665, 933, 973, 987;applied to banks, 780, 783; judicialinterpretation of, 810

Sherman Silver Purchase Act, 472, 487shipbuilding industry, 453; leadership and

competitiveness, 442–4, 445Silicon Valley, 134, 135, 136, 151, 448,

950silver coinage, 471, 472, 487single mothers, 269, 270, 271, 274, 286single-parent families, 263–4, 271skill content of work, 551, 555, 558; and

earnings inequality, 259–60; inshipbuilding industry, 443

skill differentials, 552, 569; and wagestructure, 256n11, 257–8, 259, 262,285, 566, 567–9, 588, 601, 602–3

Index 1181




skilled labor, 285, 555, 616skills, 551, 554; in immigration policy,

536–8Slaughter-House cases, 643smallpox, 11, 514Smolensky, Eugene, 267, 276, 286Smoot-Hawley tariff of 1930, 215, 457,

458; as cause of Great Depression, 304,305–6

Snowbelt, 146, 160social costs of industrialism: regulating,

988–95social democracy, 674, 1018social insurance, 273, 279–80, 553, 569,

612, 614, 615; payroll tax for, 1051social mobility, 162, 929, 957social relations of employment:

assymmetries of power in, 690–1; laborlaw in, 628–9

social relations of production, 103;convergence in, 100; in regions, 99; inSouth, 122–3; spatial trends in, 98

Social Security, 18, 271, 277, 326,393n90, 569, 612, 1049; financing,1041, 1051; prospective bankruptcy of,539; tax rates, 1052; trust funds,1056–7

Social Security Act, 274, 326, 550, 553,574, 575, 614, 1040

social security programs: Canada, 230social welfare: spending for, 4–5, 275,

277, 278, 279–80, 286; workers’ rightsand, 674

Soil Conservation Act (1936), 735Sokoloff, Kenneth, 44–5solid-state physics, 878, 885, 909Solow, Robert, 21, 804–5South (the), 97; agriculture, 103, 118,

697; backwardness, 694, 695; bankingcrisis in, 750, 760; blacks’ earnings in,606; city-building, 146, 164, 166, 169;economic problem region, 122–3, 125;industrial specialization, 99, 100;manufacturing, 154, 155;manufacturing employment, 115, 124;population, 93; services in, 155; shift of

population to, 96, 531, 534; suburbsin, 145; tenancy rates, 697; urbansystem in, 137, 177; urbanization, 140,143

South Africa, 455, 472South Atlantic division, 133; population,

100; urbanization, 140, 143South Carolina, 121, 123Southeast division, 103, 104, 122; bank

failures, 174; manufacturing, 120;specialized industries, 128, 129, 133–4

Southwestern division, 95, 103, 104, 120,122; building boom collapse, 171, 172;cities in, 523; new housing in, 150;“retirement” counties, 531; thrifts in,792; urban centers, 133

Soviet Union, 120, 332, 491, 686, 734;atomic bomb test, 339, 371; Cold War,345; computer industry, 887, 889;credit provided to, 489; threat from,367, 372

Spanish-American War, 331, 356, 388

speculation, 97, 143, 163, 169, 170, 172,173, 174, 175, 177, 473, 758, 761,800

standard metropolitan statistical areas(SMSAs), 153, 155, 160

standard of living, 66, 552; Canada, 214,245; minimally decent, 267–8; U.S.leadership in, 419; in wars, 393,398–400

Standard Oil Company, 857, 931, 932;antitrust case against, 933; divestiture,973; structure, 949

Standard Oil Company of New Jersey,811n6, 850, 854, 942; DevelopmentDepartment, 853

Standard Oil of Indiana: assets, 942staple exports: Canada, 191, 192, 234–7,

242, 245staple theory, 192–4, 197, 204state banks, 744, 750; regulation of, 934;

and Federal Reserve System, 744, 972,979

1182 Index




state-chartered banks: branchingprivileges, 749, 767, 779

state-chartered trust companies, 750state governments, 97, 1015; fiscal actions

of, 1044–5; and foreign finance, 465,467; funding for universities, 815, 816;growth of, 1035; R&D expenditures,818; revenue needs, 1025, 1026; targetsof attacks on growth in government,1054–5; taxation, 1035–6

states: authority of, 986; regulatinginsurance, 754; securities regulation,753

steam engine, 34, 65, 527, 874steam power, 40, 76, 520, 528;

automobiles, 830, 831steam turbine, 873steel, 39–40, 527; produced in electric

furnaces (1970–94), 871t; relativedecline of, 408

steel industry, 132, 451, 809;competitiveness in, 1900–1913,419–22; electricity in, 869–73; foreigncompetition, 958, 959; government aidto, 450; managerial quality in, 452,453; postwar decline, 424–32; relativeto Japan’s, 417–18; rise and fall of U.S.leadership in, 419–32; U.S. dominance,1913–1953, 422–4

steel prices, 424, 443stock exchanges, 784–5; information

requirements, 767–8stock market, 317, 351, 743, 763, 782stock market collapse (1987), 304–5, 797,

800–1stock market crash of 1929, 170, 308–9,

310, 311, 757–9, 800, 978; as cause ofGreat Depression, 304–5; effects of,305

strikes, 582–3, 646, 650, 652, 654, 655,683, 687, 934; common law of, 651,656; postwar, 686

Strong, Benjamin, 482, 483, 1029, 1030;death of, 307, 483–4, 760

structural change: Canada, 198, 200–2;regional and urban, 93–190

subsidies: aircraft industry, 445; Japan,452; militarily strategic products, 450;shipbuilding, 444; steel industry, 430

suburban development/suburbs, 95, 134,149, 150–1, 152, 153, 163, 165, 166,167; incorporated, 145; population,143, 144t; transport innovations and,148

suburbanization, 97, 98, 163–4, 177, 522,524; automobile in, 533; warproduction and, 159

Sumatra, 469Sunbelt, 100, 146, 160; shift of

population to, 525, 533–54Sunbelt-Snowbelt divide, 98, 115–18supply: agriculture, 727; in effects of

population on economy, 541; of femalelabor, 579

Supreme Court, 323, 324, 582, 613, 674,734–5, 780, 795, 978, 1042; antitrustcases, 810, 973; jurisdictional disputecases, 974–5; labor law, 647, 650,651–2, 653, 655, 658, 664–5, 668–9,675, 682, 683–4, 685, 689; patentcases, 812; and regulatory legislation,977

Sweden, 443Switzerland, 66, 455, 488, 738; gold

standard, 485; pharmaceuticals, 861synthetic dye industry, 846, 861synthetic fibers, 857–60, 860tsynthetic products, 846–9synthetic rubber, 847, 856–7, 858, 859

Taft, William Howard, 613, 657, 933,972–3

Taft-Hartley Act, 580, 685–7, 688–9TANF (Temporary Assistance to Needy

Families), 274, 276tangible capital, 2, 3–4, 21, 23, 40, 43,

64, 75; composition of, 24–5;importance of growth of, 37; ratio tooutput, 45; use in technologicalprogress, 50, 51

tangible capital-saving innovations andtotal factor productivity growth, 60–4

Index 1183




tariff policy: Canada, 209–13tariffs, 305, 439, 454–5, 1021–2, 1025,

1035; Canada, 214, 220–1, 222,237–8; steel, 419, 420, 422, 423

Tariffs of 1890 and 1894, 443tax policy, 1018, 1019, 1025, 1027–8,

1032, 1033–4; agriculture, 731;bipartisan convergence in, 1051; ofHoover, 1038; and poverty reduction,273, 274, 275, 277, 278, 286; ofReagan, 1056; of F.D. Roosevelt,1040–3

tax receipts as percentage of grossdomestic product, 1987, 1052t

tax reform, 1023–4, 1051, 1057–8, 1060;New Deal, 1041–3

Tax Reform Act of 1986, 1057, 1058taxation/taxes, 61, 255, 1019, 1039;

bracket creep, 368; Canada, 227–8;contributions of various to total taxrevenues, 1017t; dependency burden in,546; distribution of revenues by typeof, 1016t; emergencies and, 1059;ideology regarding, 1022; progressive,1026–7, 1032; soak-the-rich, 1033,1040, 1049; in war finance, 334,350–4, 355, 356, 357, 358–63, 365,366–8, 370, 372–3, 379, 380–1, 382,384, 385–6, 773; wartime, 1020–1,1027, 1028; see also income tax;redistributional taxation

Taxation: The People’s Business (Mellon),1033–4

Taylor, Frederick, 48technological change, 4, 166, 803–925; in

agriculture, 303, 694, 696, 700–1,707–8, 710, 715, 716, 726, 741n44;biased, 43, 45, 46, 52, 78; and earningsinequality, 261–2, 263; economicimpact of, 804–6, 807; and industriallocation, 529–30; and inequality, 285;and labor force, 555; in populationredistribution, 527; and women’s wagesrelative to men’s, 606–7, 616

technological innovations, 7, 95, 807,

972; continuity and change intrajectory of, 47–50; effect onpetroleum and chemical industries,853–6; and regulatory change, 997

technological progress, 22, 37, 39, 40;capital-using bias in, 3–4; critical roleand changing direction of, 41–3;incorporated into production, 28–9;natural resource-intensive, 51; andpopulation distribution, 530, 534, 535;and population growth, 548; and unitlabor input requirement, 75

technology(ies), 2, 3, 47–66, 829,839n25; aircraft industry, 445;chemical, 851; commercialization ofnew, 828; diffusion of, 83, 715–17; andearnings inequality, 258; and factorylocation, 527–8; and evolution of labormarket, 587; importation of: Canada,198; incremental innovations andmodifications, 865; internationaldifferences in, 411; international flowsof, 806, 854; international transfers of“hard” and “soft,” 837, 838;intersectoral flows of, 830, 838; non-neutrality of, 43; and “old” industries,907; and regulation, 971; steelindustry, 432; time to be realized,874–5; U.S. leadership in, 911

telecommunications, 3, 48, 65, 878, 952;bottleneck in, 876–8; competition in,960; deregulation, 902, 907, 1003–5;in population distribution, 534;regulated competition in, 1011, 1012;regulatory failure in, 997

telegraph/telegraphy, 3, 39, 65, 807, 981;incorporation, 930–1

telephone/telephony, 34, 530, 907–8, 981,982; effect on farm life, 711, 712, 713;incorporation, 930–1

telephone system, 3, 64television, 446–7, 530, 951, 952; effect

on farm life, 711, 713Temporary National Economic Committee

(TNEC), 769, 825

1184 Index




tenancy rates, 697tenant farmers, 100, 303Tennessee, 647Tennessee Valley Authority (TVA), 126,

379n73, 710, 1039Texas, 118; annexation in, 144; bank

bailouts, 794; foreign capital in, 122;immigrants in, 162; labor legislation,647; thrifts in, 175–6, 792; urbansystem in, 104, 137; urbanization, 143

textiles and apparel industry, 97, 133,453, 520; child labor in, 572;government aid to, 450; leadership andcompetitiveness in, 439–42;protectionism, 456; in South, 122

thrifts, 175–6, 762, 781, 801, 1005–6;regulation of, 769–70; services, 788

tight-money policy, 758, 759, 760time deposits, 750, 778tire industry, 958, 959total factor productivity (TFP), 22, 25,

28, 40; agriculture, 700; Canada,197–9, 232, 246; electricity sector,875; measurement of, 35; principalsource of growth, 37–40; textileindustry, 44; see also crude total factorproductivity (Crude TFP); refined TFP

total factor productivity growth, 1–2, 39,43; in manufacturing, 419; measures of,37; tangible capital-saving innovationsand, 60–4

tractors, 34, 303, 705–6, 830trade, 455; foreign finance in, 464;

protection, 82; reduction of barriers to,1050

trade agreements: Canada, 221, 238–9;union-employer, 654, 655–7, 661–2

Trade Agreements Act of 1934, 457trade associations, 673, 977–8, 1034;

consensus standards of, 991, 992trade balance, 494, 497, 498, 500, 501trade liberalization policies, 454–5, 457–8trade patterns: change in, 728; forces

driving, 411; natural resourceendowments in, 412

trade policy, 407–62; explaining, 454–8;influences in, 456–7

training, 551; investment in, 2, 43transfers, 257, 264, 270, 272, 273,

279–80, 281, 286, 287, 404, 1021; toagriculture, 279; and inequality, 277;intergenerational, 326; and povertyrate, 268–70, 277–8; during VietnamWar, 376, 377, 378, 381, 384, 385

transistor, 446, 878–80, 882, 883, 909,951–2

transistor technology: in computers, 893transport/transportation, 46, 47, 60, 83,

975; Canada, 222; deregulation, 959;developments in, 31, 32t; foreigninvestment in, 467; incorporation in,928, 929, 932; infrastructure, 163;investments in, 39; and labor law, 637;and manufacturing, 45; oligopoly in,976; rate-of-return regulation, 953;regulation, 972, 977, 981, 983–4; inSouth, 122; TFP, 62

Transportation Act of 1920, 668, 972,973

Transportation Act of 1940, 983transportation costs, 75, 529; Canada,

202, 210, 211; reduction in, 76, 78, 96transport innovations: and urban changes,

148–9Treasury bills, 779, 790, 791Treasury-Federal Reserve Accord, 775,

776trucks/trucking, 34, 155, 529, 533, 953;

deregulation, 999–1001; effect on farmlife, 705, 711; interstate, 983

Truman, Harry, 332, 339n23, 341, 367,368, 372, 389, 1049; containmentpolicy, 371

Truman administration, 339, 371, 372,490

Truman Doctrine, 332, 371, 382trusts, 750, 784, 931Truth-in-Lending Act, 793n29Turkey, 341twentieth-century growth path, 40–66

Index 1185




undistributed profits tax, 1042–3unemployment, 21, 82, 152, 551, 555,

589–9, 786, 958, 996; duration andincidence: 1900 and 1980, 591–6; inGreat Depression, 313, 317, 759; low,954, 965; New Deal and, 325; andpoverty rate, 268, 269; relief spending,1044; rising, 328, 745, 759; withrising wages, 322–3

unemployment (Canada), 192, 215, 218,229, 230, 231, 243–4; social policyregarding, 222–3; during World WarII, 226

unemployment insurance (UI), 274, 551,553, 569, 592, 596, 597, 599, 614;Canada, 229, 244

unemployment insurance legislation, 612,614–15

unemployment rate, 960; and inequality,252, 255–6; 1930s, 393, 600, 601; andwars, 346

unemployment trends, long-term, 589–91

unfair labor practices, 672, 673–4, 683–4unfair trade practices/competition, 451,

973union membership as fraction of non-

agricultural employment, 1890–1992,581f

unionization, 263, 554, 555, 580–5, 946unions, 83, 323, 325, 420, 549–50, 555,

587, 627, 628, 658, 691, 962; andantitrust, 654–7; Canada, 207; andcollective action, 659–60; and collectiveagreements, 661, 663, 664; collectivebargaining, 667, 671, 672, 679, 681,1040; in common law, 650–1, 652; andcompetitiveness, 453–4; containmentof, 687, 689; constraints on, 664–6;and corporate transformation, 934;decline in membership and influence,689; early, 636; and earnings inequality,263; legislation affecting, 553, 612;and legislative immunities, 652–4; inNIRA, 978; public attitude toward,668; right of collective organization

and bargaining, 676–7; strength of,604, 616; and wage gaps, 435

United Auto Workers (UAW), 435, 437,438, 439, 453–4

United Kingdom: defense expenditures,402n99; growth in, 66–71, 75, 78;R&D expenditures, 820, 828; urbanfrontier growth in, 167–9; see alsoBritain

United Mine Workers (UMW), 582, 666United Nations, 371, 389, 956United States: and Canada, 215, 219, 236,

238–9; comparisons with Canada,195–7, 196t, 199, 200, 210, 244, 245,246, 247; geographic sections anddivisions, 94f; international role of,371–2; leadership position, 3, 410,457, 806, 903, 910, 911, 947, 951,965; military and space contracts, 135,146; and Tripartite Agreement, 488

United Steel Workers (USW), 426, 427,428, 431, 453–4

universal health insurance (Canada), 230,240

universities: and computer industry, 886,889–90, 902; and corporate economy,940, 951; experimentation and designresearch: aircraft, 841–2; and industrialresearch, 815–17, 819–20, 824; andindustry, 852–3; and R&D, 808; andsemiconductor industry, 885;supporting engineering, 912; trainingprofessionals, 905, 942–3, 950

university research, 909, 910; changingroles for, 823–5

unskilled labor, 550, 552; wages, 566,567–9, 588

urban areas: population concentration in,529, 530; population move to, 527,528

urban centers, 146, 535; motor vehicletransportation altered structure of, 533;in Sunbelt movement, 534

urban concentration, 522, 535, 548urban development/growth, 95, 96–7,

104–5, 121, 165, 166; federal programs

1186 Index




in, 152–3urban population, 138, 139t, 140, 527,

528, 529, 530; geographic sections anddivisions, 1900–1990, 141t

urban renewal programs, 152urban system, 105, 152; evolution of, 98;

high-tech regions in, 137–8urbanization, 100, 118, 1025; in Europe,

202; and exposure to disease, 518–19;of poverty, 98, 114, 160–1; regionaldifferences in, 138–40; and ruraldepopulation, 524; in South, 122;technological developments in, 526–7

U.S. Congress, 130, 152, 324, 345,486–7, 933; anti-poverty measures,274; farm bloc, 730, 731, 751; financialsystem legislation, 779, 782, 785,978–81; and fiscal policy: World WarII, 1046–7, 1048–9; foreign policyposture, 371; funds for naval vessels,330; and Great Depression, 761, 762;hearings on banking, 319; HouseBanking Committee, 176, 972;immigration legislation, 613; interestrate controls, 175, 790; labor law, 668;national highway system, 149; NewDeal legislation, 317, 764, 765–6;pension protection legislation, 797; andregulatory agencies, 991; regulatorylegislation, 977, 982–3, 988–9, 994,995, 1001, 1005–6, 1008, 1011; andS&L crisis, 791–2; Senate Banking andCurrency Committee, 764; socialwelfare policy, 276; and war financing,350, 352, 353, 354, 355, 357, 358–9,362, 366, 367, 368, 370, 372, 373,380, 382, 386, 388; wars mandated by,389

U.S. Department of Agriculture (USDA),711, 712, 714, 723, 861, 1043; R&Dexpenditures, 818

U.S. Department of Commerce, 386, 479,771, 900, 1034–5; Division ofIndustrial Economics, 1045; R&Dexpenditures, 818

U.S. Department of Defense, 334, 336,

337, 339n23, 340–1, 367, 885, 887,890; R&D expenditures, 818, 819,821; software procurement, 901–2,901f

U.S. Department of Energy (DoE), 336U.S. Department of Justice, 423, 449,

451, 780, 783, 795, 810, 854, 878–9,987, 1004; antitrust cases, 854, 878–9,987, 1004; Antitrust Division, 825–6,960, 1006, 1007; guidelines forhorizontal mergers, 1008

U.S. Department of Labor, 603U.S. Department of State, 331, 339n23,

367, 475, 479; Business AdvisoryCouncil, 954

U.S. Department of the Interior, 1001,1009; R&D expenditures, 818

U.S. Department of the Navy, 331,334n14, 336, 337

U.S. Department of War, 331, 336, 337U.S. domestic mainframe and

minicomputer shipments, 1960–90,895f

U.S. foreign finance: before 1914, 464–75

U.S. IC shipments, 1972–1990, 883fU.S. integrated-circuit production and

prices, 884tU.S. Patent Office, 742U.S. Post Office, 839, 840U.S. Postal Service, 379n73U.S. Steel, 132, 422–3, 466, 475, 932–3,

947; assets, 942; facilities abroad, 469;investments in research 941

U.S. Treasury, 369–70, 480, 481, 1030,1041, 1048; Bureau of the Budget,1033; gold reserves, 471, 472, 474;interest rates, 744, 745; loans to foreigngovernments, 476–7; non-partisan,1033; team running, 1031–2; and warfinancing, 354, 355, 358, 359, 362,364, 365, 773, 1027–8, 1029

U.S. v. AT&T, 907Utah, 135, 650utilities: oligopoly in, 976; regulation of,

326, 953, 973–4, 977, 981, 982–3

Index 1187




vaccines, 11, 31–2, 33value-added taxes, 1016Vermont, 129, 130vertical integration, 136, 835, 936–7,

974, 1021Veterans Administration, 770, 788Victory Loan, 354, 744, 773Vietnam War, 59, 329, 335, 389,

402n98, 405, 496, 785, 958, 996;costs, direct, 337, 340–1, 346; costs,indirect, 347, 348, 349; expendituresin, 332–3; financing, 350, 373–82,386, 1053; opportunity costs, 401;opposition to, 382n78

Vietnam War spending impact,1965–1973, 374–5t

Virginia, 143, 144, 464; labor law, 630,633

Volcker, Paul A., 500, 786Voluntary Export Restraints, 438, 455

wage and hour legislation, 626wage controls, 785–6wage differentials for white-collar and

blue-collar workers, 1922 to 1952, 602fwage dispersion across past half century,

1940 to 1985, 600fwage increases: under NIRA, 321, 322,

323, 327wage labor, 103, 122–3, 630, 632, 635,

695wage rates: auto industry, 432, 435, 439;

electronics industry, 446; steel industry,426–8, 427f, 431; textiles and apparel,441; unions and, 454; for women, 510

wage structure, 284, 549, 552–3, 554,586, 609, 616; inequality in, 599–604;long-term trends in, 556; unions and,584, 585

wages, 2, 60, 76, 103, 615; collectivebargaining in, 661; in evolution oflabor market, 587–8; gender gap in,579, 606–9; immigration and, 539,614; inflation and: Canada, 206–7;regional disparities in, 552; rigidity,551; women, 579

wages and salaries in geographic divisionsas percentage of total earnings, 104t

Wagner, Robert F., 323, 664, 670, 671,672–3, 682

Wagner Act (National Labor RelationsAct), 323, 326, 553, 554, 580, 582,614, 616, 627, 670, 673–5, 682–3,686, 687, 690, 946, 1040; changedinterpretation of, 678–80; in courts,680–1; implementing, 675–8;redefinition of scope of, 682–5

Wall Street, 304, 315, 479, 757, 764,769, 961; efforts to regulate, 783;institutional investors, 784;transformed, 799–801

Wallace, Henry A., 709, 1043war(s): and American economy in

twentieth century, 329–405; costs of,334, 335–49; costs of: direct costs, 335,336–46, 342–4t; costs of: indirectcosts, 335, 346–9; and earningsinequality, 257; effect on poverty rate,269; in income distribution, 262–3;opportunity costs, 386–405; real costsof, 347f; and technological change, 854,856, 857

war economy, 1939–1945 (Canada),225–6

War Finance Corporation (WFC), 355n46,1029

War Loans, 773War Measures Act of 1914 (Canada), 225war on poverty, 152, 269, 275, 1049War Production Board, 159War Revenue Act (1917), 352wartime expansion of manufacturing

facilities in geographic divisions,1940–1945, 129t

wartime finance, 334, 350–86, 351t, 773;World War I, 1026–32; World War II,1047; see also defense expenditures/spending

Wartime Prices and Trade Board (Canada),228

wartime R&D, 817–20; societal benefitsof, 819n14

1188 Index




wealth: distribution of, 929, 954, 957,1023; inequalities of, 161, 282;international perspective, 79, 80, 81;leveling of, in World War II, 948

weapons acquisition and production: ColdWar, 334

welfare, 280, 736, 959; economic changesaffecting, 35; measurement of growthof, 35

welfare programs/services, 274, 1015;federal government and, 1037, 1038

West (the), 95, 97, 100, 329; banks,banking, 753; cities, 523; city-building, 146, 164, 166, 169;industrial development, 132; industrialspecialization, 99; manufacturing,154–5; manufacturing employment,115; population, 93, 100; services in,155; shift of population to, 96, 531,534; suburbs, 145; transportinfrastructure, 63; urban system, 137,177; urbanization, 140, 143

west (Canada), 216–17; deterioration ineconomy of, 216–17, 219; effect oftariffs on, 221

West North Central division, 174, 696,697

West South Central division, 100, 128,140, 143

West Virginia, 131, 647, 657Western Europe, 738, 825, 827; computer

industry, 900, 903; defenseexpenditures, 330–1; growth in, 66–71,74–5, 76, 77, 78–82

western settlement: Canada, 191, 192–3,200, 203, 205, 209, 210–11

wheat, 245, 303, 734; as staple export,192–3, 234

Wheat Boom (Canada), 193, 194, 199,201, 202–4, 232, 235, 236

wheat economy (Canada), 214, 217, 218;emergence of, 199–213, 216

wheat exports (Canada), 191, 192, 196,200, 201, 205, 215, 234

white-collar employment, 558, 563, 565white-collar workers, 569, 616; female,

579, 606; sickness, 598;unemployment, 592; wage premium,601–2

Williamson, Jeffrey G., 254–5, 256n11,258, 259, 262, 281

Wilson, Woodrow, 352, 353, 356, 372,386, 613, 944, 1024, 1025, 1033,1040, 1047; antitrust policy, 933,972–3; regulatory policy, 1008; taxsystem, 1026, 1027, 1028, 1032, 1034

Wilson administration, 1048; war finance,1027, 1028–32

Wilson-Gorman Tariff, 1023Wisconsin, 648women: Canada, 222; earnings inequality,

264; economic role of, 615–16;educational attainment, 59n35;employment in corporations, 943;equity for, 955; farm wives, 707; labormarket for, 510–11; sex role attitudesand status, 512–13; work outside thehome, 12, 15, 36, 254, 513, 955; seealso labor force participation of women

women workers: laws limiting hours of,647–8, 685

wood products exports: Canada, 215, 217work experience: and earnings inequality,

258, 259; of women, 608work relief, 279–80workers, 249–50; characteristics of, 24;

discipline, 585, 586, 588; protection of,553, 626, 988; and work, 616

workers’ compensation, 553, 626, 648–50workers’ compensation (WC) legislation,

612workforce: age and sex composition of, 27;

educational attainment, 56–8, 59–60,78; farm, 693; residence-based, 534; seealso labor force

working age population: impact of old-agedependency on, 545–6

Works Progress Administration (WPA),158, 280, 1040, 1043

World Trade Organization (WTO), 455,806

Index 1189




World War I, 15, 62, 63, 71, 309, 329,376, 388, 405, 458, 492, 774, 839,1046, 1048, 1049; agriculture in, 718; American economy in, 331–2,333; backlog of demand from, 169;banking in, 749–50; Canada and, 196,197, 201, 204–9, 214, 227, 228, 237; collective organization in, 665;costs of, 335, 386; costs of: direct, 337, 341, 346; costs of: indirect, 347,348, 349; demand for unskilled laborin, 568; effect on research, 940–1; farm exports in, 120; Federal ReserveSystem in, 744–5; financing, 350–6,351t, 365, 366, 367, 386; governmentcontrol of economy in, 730; andgovernment spending, 1013; growth ofgovernment in, 1015; and growth ofpublic sector, 1025, 1026–32;immigration curtailed in, 569; impacton business-government relations,971–2; and income distribution, 255,262; and labor law, 668; opportunitycosts, 389–93; price inflation, 454;R&D in, 817; as shock destabilizingworld economy, 301–2; andtransformation of U.S. foreign finance,475–84; U.S. in, 1024; xenophobia,613

World War II, 7, 11, 70, 79, 131–2, 301,329, 368, 376, 509, 512, 569, 842,1050; agriculture in, 694, 718;American economy in, 332, 333; and

banking and finance, 773–5, 778; citiesin, 157, 158–9; costs: direct, 337, 338,341, 346; costs: indirect, 347, 348,349; defense housing in, 150; effect oneconomy, 328; effect on incomeinequality, 262; effect on industry, 856;effect on poverty rate, 265; effect onregions, 100; effect on wages, 565;financing, 351t, 357–66, 367, 385–6,405; growth of government in, 1015;and growth of public sector, 1046–9;impact on social structure, 81; impacton structure of R&D, 818–20, 828,910; and inequality, 256, 278, 284,285, 287; income tax revenues in,1016; international financialconsequences of, 488–92; labor in, 121,686; opportunity costs, 393–4, 400;and pharmaceutical industry, 861;securities controls in, 752; taxstructures of, 370; and unionization,580; U.S. in, 947, 948; and wagestructure, 603

World War II (Canada), 191–2, 245;Canadian economic growth in, 199;financing, 227–30; and manufacturingsector, 237; war economy, 225–6

Wright, Gavin, 56, 62, 123, 412, 904–5Wyoming, 120Wright Brothers, 804, 839

“yellow dog” contracts/laws, 582, 652,653, 654

1190 Index




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