Empire of Wealth: The Epic History of American Economic Power (P.S.) (Paperback)

by John Steele Gordon (Author) "ABRAHAM LINCOLN thought that a nation-however much the whole might exceed the sum of its parts-consists of nothing more than its people, its land, and..." (more)
Key Phrases: New York, United States, Wall Street (more...)

Editorial Reviews

From Publishers Weekly
The word "epic" in the subtitle is a tip-off that instead of a critical history of the American economy, this book is a celebration of it. Nothing wrong with that, especially when the tale's told breezily and accurately. In fact, Gordon (The Scarlet Woman of Wall Street) notes the many stumbles and the frequent foolishness and corruption that attended the nation's rise as an economic powerhouse. The larger story of success is, in fact, an extraordinary one. The trouble is that the American economy, like every other, bends much out of shape. It has always provided opportunity but always with too much inequality. A full history of the American economy would take this into consideration—in the past as well as the present, and Gordon's doesn't. Also, his book sometimes wanders off into irrelevant subjects, like the origins of the computer, but his grasp of the larger picture is sure and his prose bright. His chapter on Northern and Southern Civil War finances is a model of its kind. Those seeking an introduction to the general history of American economic power will find few better places to start, as long as they keep in mind that the nation's economy is not perfect, its benefits not unalloyed and its future domination of other economic powerhouses by no means assured.
Copyright © Reed Business Information, a division of Reed Elsevier Inc. All rights reserved. --This text refers to an out of print or unavailable edition of this title.

From The Washington Post
More than a century ago, the steel titan Andrew Carnegie declared in his book Triumphant Democracy: "The old nations of the earth creep on at a snail's pace; the Republic thunders past with the rush of the express. The United States . . . has already reached the foremost rank among nations, and is destined soon to outdistance all others in the race. In population, in wealth, in annual savings, and in public credit; in freedom from debt, in agriculture, and in manufactures, America already leads the civilized world."

No historian, in Carnegie's day or since, has denied America's extraordinary economic growth, but interpreters have not agreed on the benefits and costs of that growth. Nor have they agreed on what constitutes the most important lesson of America's economic development. When they approach history's altar, some have argued that the lessons are to be found in the fire, from the raging engine of economic growth. Others have taken their lessons from the ashes, from the suffering of those singed in the process.

In An Empire of Wealth, John Steele Gordon, an accomplished historian of American business and a columnist for American Heritage magazine, puts the focus back on the fire, and he does so with verve and passion. His absorbing popular history recounts the triumphal saga of a collection of colonies that, having broken free of Europe's constricting hand, went on to convert a vast patrimony of virgin forests and generous natural resources into the world's most powerful economic system -- succeeding so wildly that today, with 6 percent of the world's land and population, the United States boasts "close to 30 percent of the world's gross domestic product."

Gordon is a knowledgeable and relentlessly optimistic chronicler, relating with great panache how America's turn toward liberty, growth and innovation produced wonders of synergy. He captures well the epiphanies of inventors, industrialists and speculators as these legendary self-made men spun together the fibers of American dominance. And he vividly recreates the climate of exigency that made America's wars such powerful economic catalysts. An Empire of Wealth offers a Promethean narrative of America's rise to economic dominance. Gordon's account is both highly readable and enlightening.

With a near-perfect ear for the apt quote and the telling phrase, Gordon marches the reader through America's seminal economic accomplishments -- from Alexander Hamilton's financial plans to the Erie Canal, the cotton gin and the piecemeal nurture of a blossoming economy; to the rise of steam energy, transatlantic shipping, the railroad, the telegraph, and the mega-businesses of petroleum, electrical energy, steel and automobiles; and finally to the Cold War boom and the Internet. Before the reader's eyes, an undeveloped land dotted with scattered farms, primitive roads and modest local markets is transformed into a Hamiltonian system of robust expansion, audacious investment and global reach.

Unfortunately, however, this narrative of primary colors and bold strokes lacks nuance and contrasting detail. As inventions and breakthroughs carry the story forward, Gordon downplays the unsavory aspects of a more textured American economy and swiftly dispatches more complicated issues like new economic departures. As a result, his conclusions are modestly scaffolded, offering more a point of view than a historical analysis.

While Gordon informs us that many "captains of industry" were impressive philanthropists, he does little to explain how this benevolence coexisted with brutal business practices and labor policies. Fascinated by the results of wealth production, he pays but passing attention to the circumstances under which this wealth was produced. He is satisfied to suggest that things were certainly worse elsewhere. No doubt they were, but these important issues bear profoundly on the story at hand. After all, concern about economic justice led Americans to make crucial modifications in laissez-faire capitalism in the hopes of adjusting an irregular and sometimes manipulated market.

Indeed, we read so little about business excesses that we are unprepared for Gordon's mention of the federal government's 1907 offensive against the Standard Oil petroleum monopoly. He concludes his discussion of the oil cartel's dissolution by noting an irony: The breakup made John D. Rockefeller much wealthier. Does this tell us something important? Gordon fails to ponder the question.

Elsewhere, he suggests that Rockefeller, J.P. Morgan and Andrew Carnegie fought federal regulation because they came of age in an era when the government was easily corrupted -- as if the Gilded Age business community was more trustworthy. The issue is not trust but something deeper, which Gordon simply lets slide. "The trouble with capitalism is capitalists," Herbert Hoover once said. "They're too damn greedy." Gordon quotes Hoover's chestnut but devotes too little thought to the hazards of unregulated profit motive.

Gordon's enthusiasm also leads to some debatable conclusions, especially in the closing pages of his account. The calamitous recent decline in technology stocks, which set off a round of scandals that laid bare some of the shoddiest business practices in history, is dismissed as a "normal, if considerable, stock market correction." He lauds the computer and the Internet as the "most potent weapon against tyranny since the concept of liberty itself." In fact, this technology has been used for profound evil even as it has also promoted the freedoms we cherish. Gordon has a tendency to exempt technological progress from searching scrutiny.

That laissez-faire confidence is worrisome. He closes his book with the al Qaeda attack on America on Sept. 11, 2001, blithely reassuring his readers that wars are won by money and that no one has ever had more than the United States. Would that it were all so simple.

Reviewed by Thomas Kessner
Copyright 2004, The Washington Post Co. All Rights Reserved. --This text refers to an out of print or unavailable edition of this title.

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Product Details

• Paperback: 496 pages
• Publisher: Harper Perennial (October 25, 2005)
• Language: English
• ISBN-10: 0060505125
• ISBN-13: 978-0060505127
• Product Dimensions: 7.8 x 5.1 x 1.2 inches
• Shipping Weight: 12 ounces (View shipping rates and policies)
• Average Customer Review: 4.1 out of 5 stars See all reviews (47 customer reviews)
• Amazon.com Sales Rank: #44,382 in Books (See Bestsellers in Books)

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Customer Reviews

Most Helpful Customer Reviews

100 of 109 people found the following review helpful:

5.0 out of 5 stars Informative and enjoyable biography of the American Economy, October 15, 2004

By	Craig Matteson (Ann Arbor, MI) - See all my reviews (TOP 50 REVIEWER)

This review is from: An Empire of Wealth: The Epic History of American Economic Power (Hardcover)

Forests have been cleared for all the books that have been written on American History. While a few stand out from the pack, it is harder to find one that is fresh, interesting, and informative. "An Empire of Wealth" is all of those things and I strongly recommend it to you. Instead of being a military, political, or diplomatic history, John Steel Gordon has written an economic biography of our country. Do not mistake this approach for a dry treatise on economics. Far from it, this book is full of struggle, wild success, bitter failure, dislocation from wrenching changes in the economy due to the rise of new technologies, and marshalling resources for war.

He begins with the resource rich, but hostile wilderness that the early explorers found. The British made the first permanent settlement at Jamestown in what is now Virginia. The settlers had come for gold, found mica that they mistook for gold ore, and only 38 of the 105 survived the first winter. They kept coming from England and they kept struggling until they began to grow and export tobacco. Mr. Gordon then takes us on a fast paced, and amazing journey through the nation's founding, the movement west, our major wars, depressions, and the rise (and fall) of technologies such as steam, the railroads, machine supported agriculture, banking, and international trade. He ends the book with the horrible events we experienced on September 11, 2001.

Not only is this a fun read for anyone interested in American History, it would be a fine addition to the history readings for high school or college students. I especially like the author's honesty about the good and the bad in our history without making us the bad guys or the source of all pain and suffering on the planet. The reader comes away with a richer understanding of our history and feels good about our place in the world.

The book has a particularly nice bibliography in addition to the chapter notes. The readings offered in the bibliography would enrich anyone and I also urge you to look at them and read as many as you can. There is also an index to help you find certain topics. (I am a big fan of indexes and cannot understand any modern book without one - given how easily computers can create them and allow the editor to work them into something useful. Yet, we still get books without indexes because people think they will be more popular. What I want is useful!)

18 of 19 people found the following review helpful:

5.0 out of 5 stars Very pleasantly surprised..., April 3, 2006

By	Y. Sageev "a garden-variety dude" (Western NY) - See all my reviews (REAL NAME)

This review is from: An Empire of Wealth: The Epic History of American Economic Power (Hardcover)

I purchased "Empire of Wealth" to address the glaring deficit in my knowledge of American history from an economic perspective. At the same time, I was dreading that this history would be boring and dry.

It is anything but. Gordon's effort is downright gripping, a compelling read chock full of information. Gordon has a knack for finding the most intriguing aspects of history and explaining difficult concepts in a manner that is quickly grasped. He is able to get to the heart of a concept without dragging along pedantic baggage. His writing is flawless and the raw historical material is seamlessly synthesized with consummate professionalism.

Gordon wraps his discussion of larger economic themes around the impact that invention, infrastructural development, and politics had on the burgeoning American economy. Examples include the Erie Canal, road and railroad building, the cotton gin, or the bessemer furnace.

From an "ideological" perspective, Gordon falls into the typical free-market, pro-deficit camp, which is consistent with the vast majority of economists today. However, he is far from dogmatic or simplistic, as some reviewers maintain. He acknowledges that unregulated capitalism is "red in tooth and claw" but that labor unions have overstepped their bounds, for example. Gordon devotes much time to the monopolies, oligopolies and collusion of post- Civil War America. At the same time, he fairly points out that not all political attempts to defang raw capitalism were the panaceas so keenly hoped-for.

A nice feature of Gordon's approach is his recognition of less-appreciated historical actors. For example, he gives the much-derided Hoover some credit for helping make possible the New Deal, insofar in that he tried every means possible short of big-government alphabet-soup to stem the growing depression. FDR would not have been able to introduce his heavy-handed methods, Gordon contends, without voter experience with Hoover's more gradualist and ultimately ineffective policies.

The author narrates far too much in "Empire of Wealth" to describe here in detail, but particularly stellar is Gordon's discussion of money supply, deficits, trade balances, the role of a national bank, Northern vs. Southern economies, income tax, the history and role of Wall Street and the pernicious boom-and-bust cycle engendered by Jeffersonian opposition to Hamilton's central bank.

"Empire of Wealth" surpassed all of my expectations. Gordon's effort is a surprisingly enjoyable and very necessary history that will not disappoint.

14 of 16 people found the following review helpful:

5.0 out of 5 stars Wonderful, Well written, fast paced and informative, December 7, 2004

By	Richard E. Slaughter - See all my reviews (REAL NAME)

This review is from: An Empire of Wealth: The Epic History of American Economic Power (Hardcover)

This has got to be one of the best history books that I have read. The book chronicles the start of the United States and the inovations and trials that made the nation great. I particularly enjoyed how it intertwined the innovations with information on the thoughts of politicians, businesmen, and others of the era, and how events such as slavery impacted the economics of the time.

This was a very well written book. I initially picked it up from the library, and then purchased a copy to add to my library.