ABSTRACT
Even though German-trained American political economists were instrumental in reversing the backward situation of political economy in the US, both as an academic discipline and a profession, many of the principles, ideas, and methods of the German Historical School of Economics (GHSE) that they relied upon to facilitate this change effectively disappeared in the country during the 20th century. This chapter points out that many of the factors that significantly shaped the social, political, and economic thoughts of people in Germany were fundamentally different from those that prevailed in the US. Specifically, it explains why Americans did not value common welfare, historical studies, positive state actions, and ethical economics, all of which were advocated by the GHSE, while strongly embracing the doctrines of laissez-faire and individualism. It then argues that neglecting ethical standards and common welfare could eventually lead to states, large corporations, and prominent groups and individuals acquiring coercive authoritarian powers that would abolish freedom, destroy human progress, and bring misery to the masses.
