Structure and Virtue in United States Political Economy

During a crucial period of United States history, 1880s–1940s, ideas developed in political economy were the core component of a transformation in the way Americans thought about the social and political order. These decades, the era of the elaboration in the United States and internationally of what historians of liberal reform thought refer to as the New Liberalism, were the site of a general reassessment of the constitutive ideologies, Smithian/Lockean liberalism, and a democratized, commercialized version of classical republicanism hanging over from the agrarian republic. Scary, unexpectedly turbulent conditions in an economy plagued by recurrent cyclical downturns in investment and employment, accompanied by unprecedented levels of social conflict, placed a premium on new knowledge. This need arose just as the academic professionalization of the social sciences, the rise of critical political journalism, and highly mobilized women's and labor movements began providing impressive new analytical talent. Efforts to find answers to pressing issues raised by the “social question” were intended initially by most of those involved as a salvage operation for what remained valid among key tenets of American liberalism regarding individualism, competition, the efficacy of the market, and the role of the state. Instead, they led ultimately to a reconstruction in public philosophy, at least on the scale of the one underway since the 1970s, with the “the return of the market,” the unprecedented sway of neoclassicism, and the multidisciplinary appeal of rational choice theory.