''The Panic of 1819: Reactions and Policies'' is a 1962 book by the economist

Murray Rothbard Murray Newton Rothbard (; March 2, 1926 – January 7, 1995) was an American economist of the Austrian School, economic historian, political theorist, and activist. Rothbard was a central figure in the 20th-century American libertarian m ...

, in which the author discusses what he calls the first great economic crisis of the United States. The book is based on his

doctoral dissertation A thesis ( : theses), or dissertation (abbreviated diss.), is a document submitted in support of candidature for an academic degree or professional qualification presenting the author's research and findings.International Standard ISO 7144: ...

in economics at

Columbia University Columbia University (also known as Columbia, and officially as Columbia University in the City of New York) is a private research university in New York City. Established in 1754 as King's College on the grounds of Trinity Church in Manhatt ...

during the mid-1950s.

Summary

During the 19th century some observers believed that the Panic originated within the economic system itself, since the event could not be readily attributed to any specific event, as had some previous crises. Rothbard, however, states that the

Panic of 1819 The Panic of 1819 was the first widespread and durable financial crisis in the United States that slowed westward expansion in the Cotton Belt and was followed by a general collapse of the American economy that persisted through 1821. The Panic h ...

arose from developments related to the

War of 1812 The War of 1812 (18 June 1812 – 17 February 1815) was fought by the United States of America and its indigenous allies against the United Kingdom and its allies in British North America, with limited participation by Spain in Florida. It bega ...

and the postwar prosperity that followed. The outbreak of war stifled foreign trade and spurred the growth of domestic manufacturing, which grew to fill the demand previously met by imports. The government borrowed heavily to finance the war. Rothbard alleges that this led to a credit expansion which in turn led to rising prices. Rothbard's book provides a narrative of these events.

Reception

The book had at least seven reviews which included both praise and criticism. In a 1990 interview in The Austrian Economics Newsletter Rothbard was asked about the reception to the book and said it was well received, "In fact, much better than any other of my books. Maybe that's because I didn't analyze the causes. I only wrote about how people wanted to cure it."

Publishing history

* Auburn, Alabama:

Ludwig von Mises Institute Ludwig von Mises Institute for Austrian Economics, or Mises Institute, is a libertarian nonprofit think tank headquartered in Auburn, Alabama, United States. It is named after the Austrian School economist Ludwig von Mises (1881–1973). It wa ...

, 2007. . * Auburn, Alabama:

, 2002. Web-based PDF file prepared by William Harshbarger. * New York: AMS Press, 1973. . * New York:

Columbia University Press Columbia University Press is a university press based in New York City, and affiliated with Columbia University. It is currently directed by Jennifer Crewe (2014–present) and publishes titles in the humanities and sciences, including the fiel ...

, 1962.

Notes

External links

1975 review by Mark Skousen

Christopher Mayer’s review
of the 2002 online edition

(click download icon on top menu bar) {{DEFAULTSORT:Panic Of 1819 1962 non-fiction books American non-fiction books Books about economic crises Books by Murray Rothbard Columbia University Press books Economic history of the United States English-language books Financial crises History of banking in the United States