Foreign economic policy involves the mediation and management of economic flows across borders. Over two and a half centuries, the context for U.S. foreign economic policy has transformed. Once a fledgling republic on the periphery of the world economy, the United States has become the world’s largest economy, the arbiter of international economic order, and a predominant influence on the global economy. Throughout this transformation, the making of foreign economic policy has entailed delicate tradeoffs between diverse interests—political and material, foreign and domestic, sectional and sectoral, and so on. Ideas and beliefs have also shaped U.S. foreign economic policy—from Enlightenment-era convictions about the pacifying effects of international commerce to late 20th-century convictions about the efficacy of free markets.
Betsy A. Beasley
American cities have been transnational in nature since the first urban spaces emerged during the colonial period. Yet the specific shape of the relationship between American cities and the rest of the world has changed dramatically in the intervening years. In the mid-20th century, the increasing integration of the global economy within the American economy began to reshape US cities. In the Northeast and Midwest, the once robust manufacturing centers and factories that had sustained their residents—and their tax bases—left, first for the South and West, and then for cities and towns outside the United States, as capital grew more mobile and businesses sought lower wages and tax incentives elsewhere. That same global capital, combined with federal subsidies, created boomtowns in the once-rural South and West. Nationwide, city boosters began to pursue alternatives to heavy industry, once understood to be the undisputed guarantor of a healthy urban economy. Increasingly, US cities organized themselves around the service economy, both in high-end, white-collar sectors like finance, consulting, and education, and in low-end pink-collar and no-collar sectors like food service, hospitality, and health care. A new legal infrastructure related to immigration made US cities more racially, ethnically, and linguistically diverse than ever before.
At the same time, some US cities were agents of economic globalization themselves. Dubbed “global cities” by celebrants and critics of the new economy alike, these cities achieved power and prestige in the late 20th century not only because they had survived the ruptures of globalization but because they helped to determine its shape. By the end of the 20th century, cities that are not routinely listed among the “global city” elite jockeyed to claim “world-class” status, investing in high-end art, entertainment, technology, education, and health care amenities to attract and retain the high-income white-collar workers understood to be the last hope for cities hollowed out by deindustrialization and global competition. Today, the extreme differences between “global cities” and the rest of US cities, and the extreme socioeconomic stratification seen in cities of all stripes, is a key concern of urbanists.
Wendy L. Wall
The New Deal generally refers to a set of domestic policies implemented by the administration of Franklin Delano Roosevelt in response to the crisis of the Great Depression. Propelled by that economic cataclysm, Roosevelt and his New Dealers pushed through legislation that regulated the banking and securities industries, provided relief for the unemployed, aided farmers, electrified rural areas, promoted conservation, built national infrastructure, regulated wages and hours, and bolstered the power of unions. The Tennessee Valley Authority prevented floods and brought electricity and economic progress to seven states in one of the most impoverished parts of the nation. The Works Progress Administration offered jobs to millions of unemployed Americans and launched an unprecedented federal venture into the arena of culture. By providing social insurance to the elderly and unemployed, the Social Security Act laid the foundation for the U.S. welfare state.
The benefits of the New Deal were not equitably distributed. Many New Deal programs—farm subsidies, work relief projects, social insurance, and labor protection programs—discriminated against racial minorities and women, while profiting white men disproportionately. Nevertheless, women achieved symbolic breakthroughs, and African Americans benefited more from Roosevelt’s policies than they had from any past administration since Abraham Lincoln’s. The New Deal did not end the Depression—only World War II did that—but it did spur economic recovery. It also helped to make American capitalism less volatile by extending federal regulation into new areas of the economy.
Although the New Deal most often refers to policies and programs put in place between 1933 and 1938, some scholars have used the term more expansively to encompass later domestic legislation or U.S. actions abroad that seemed animated by the same values and impulses—above all, a desire to make individuals more secure and a belief in institutional solutions to long-standing problems. In order to pass his legislative agenda, Roosevelt drew many Catholic and Jewish immigrants, industrial workers, and African Americans into the Democratic Party. Together with white Southerners, these groups formed what became known as the “New Deal coalition.” This unlikely political alliance endured long after Roosevelt’s death, supporting the Democratic Party and a “liberal” agenda for nearly half a century. When the coalition finally cracked in 1980, historians looked back on this extended epoch as reflecting a “New Deal order.”
Steven A. Riess
Professional sports teams are athletic organizations comprising talented, expert players hired by club owners whose revenues originally derived from admission fees charged to spectators seeing games in enclosed ballparks or indoor arenas. Teams are usually members of a league that schedules a championship season, although independent teams also can arrange their own contests. The first professional baseball teams emerged in the east and Midwest in 1860s, most notably the all-salaried undefeated Cincinnati Red Stockings of 1869. The first league was the haphazardly organized National Association of Professional Base Ball Players (1871), supplanted five years later by the more profit-oriented National League (NL) that set up strict rules for franchise locations, financing, and management–employee relations (including a reserve clause in 1879, which bound players to their original employer), and barred African Americans after 1884. Once the NL prospered, rival major leagues also sprang up, notably the American Association in 1882 and the American League in 1901.
Major League Baseball (MLB) became a model for the professionalization of football, basketball, and hockey, which all had short-lived professional leagues around the turn of the century. The National Football League and the National Hockey League of the 1920s were underfinanced regional operations, and their teams often went out of business, while the National Basketball Association was not even organized until 1949.
Professional team sports gained considerable popularity after World War II. The leagues dealt with such problems as franchise relocations and nationwide expansion, conflicts with interlopers, limiting player salaries, and racial integration. The NFL became the most successful operation by securing rich national television contracts, supplanting baseball as the national pastime in the 1970s. All these leagues became lucrative investments. With the rise of “free agency,” professional team athletes became extremely well paid, currently averaging more than $2 million a year.
Between 1880 and 1929, industrialization and urbanization expanded in the United States faster than ever before. Industrialization, meaning manufacturing in factory settings using machines plus a labor force with unique, divided tasks to increase production, stimulated urbanization, meaning the growth of cities in both population and physical size. During this period, urbanization spread out into the countryside and up into the sky, thanks to new methods of building taller buildings. Having people concentrated into small areas accelerated economic activity, thereby producing more industrial growth. Industrialization and urbanization thus reinforced one another, augmenting the speed with which such growth would have otherwise occurred.
Industrialization and urbanization affected Americans everywhere, but especially in the Northeast and Midwest. Technological developments in construction, transportation, and illumination, all connected to industrialization, changed cities forever, most immediately those north of Washington, DC and east of Kansas City. Cities themselves fostered new kinds of industrial activity on large and small scales. Cities were also the places where businessmen raised the capital needed to industrialize the rest of the United States. Later changes in production and transportation made urbanization less acute by making it possible for people to buy cars and live further away from downtown areas in new suburban areas after World War II ended.