The U.S. Economy:
A Brief History
[viii]
The
modern American economy traces its roots to the quest of European settlers for economic gain in the 16th, 17th,
and 18th centuries. The New World then progressed from a marginally successful colonial economy to a small,
independent farming economy and, eventually, to a highly complex industrial economy. During this evolution, the
United States developed ever more complex institutions to match its growth. And while government involvement in
the economy has been a consistent theme, the extent of that involvement generally has
increased.
North
America's first inhabitants were Native Americans -- indigenous peoples who are believed to have traveled to
America about 20,000 years earlier across a land bridge from Asia, where the Bering Strait is today. (They were
mistakenly called "Indians" by European explorers, who thought they had reached India when first landing in the
Americas.) These native peoples were organized in tribes and, in some cases, confederations of tribes. While
they traded among themselves, they had little contact with peoples on other continents, even with other native
peoples in South America, before European settlers began arriving. What economic systems they did develop were
destroyed by the Europeans who settled their lands.
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