Isabella Bank Institute for Entrepreneurship

A recent article by Central Michigan University economics faculty member Dr. Robert E. Wright has sparked fresh conversation about the economic catalysts behind the American Revolution. Published in the Journal of the American Revolution, his piece, "Cruel Bedlam: Bankruptcies and the Break with Britain," challenges the traditional narrative that ideology alone drove the colonies to independence. Instead, Dr. Wright spotlights economic hardships stemming from British policies as a critical factor in America's push for freedom.

Economic roots of revolution

Dr. Wright’s article delves into how the prosperity of the French and Indian War era transformed into economic despair after the war. During the conflict, privateering and increased military spending brought a flood of money into the colonies. This boom led to lower interest rates and skyrocketing land values, fueling a borrowing frenzy among colonists eager to expand their holdings or trade.

However, this prosperity was short-lived. British trade restrictions, the enforcement of imperial laws and the Currency Act of 1764 severely contracted the colonies' money supply. Land prices plummeted, credit dried up and widespread bankruptcies ensued. According to Dr. Wright, this economic chaos—compounded by British resistance to colonial efforts to stabilize their economy—left many colonists imprisoned for debt and stripped of their livelihoods.

Dr. Wright asserts that these tangible economic grievances, coupled with Lockean ideology emphasizing life and liberty, pushed the colonies toward resistance. “The colonists’ lives were being upended by British policies, not just their principles,” he explains. “British policymakers would not ease up.”

A lifelong exploration of economic history

Dr. Wright’s expertise in economic history lends unique credibility to his arguments. Holding a Ph.D. in history from SUNY Buffalo, he has authored or coauthored over 20 books and numerous journal articles on topics ranging from financial crises to entrepreneurship. His fascination with colonial economics dates back to his early career, when he studied figures like Thomas Willing, an early American banker.

Dr. Wright’s insights stem from an unexpected discovery at the New Jersey Historical Society in Newark. “I managed to visit the New Jersey Historical Society in Newark, where I found a manuscript source that pretty much laid out the same story that I just described,” he recalls. The manuscript, previously unknown to historians due to its anonymity and accidental misfiling, provided a wealth of information about the colonial economic landscape. “Once I untangled the two documents, it was like finding the Rosetta Stone to the Revolution.”

Shifting the narrative

Traditional interpretations of the American Revolution often focus on ideological disputes such as taxation without representation. However, Dr. Wright suggests that these views oversimplify the complex interplay of economic forces and policy failures that set the stage for rebellion. He argues that British policies created an unsustainable economic environment, leaving the colonies with little choice but to break free.

“Our colonial forebears weren’t whiny ideologues. They were trapped between a rock and a hard place by bad British policies.” He hopes his work will encourage a reevaluation of the revolution as not only a fight for ideological freedom but also a reaction to economic oppression.

Bringing history to life

With the 250th anniversary of American independence approaching, Dr. Wright's scholarship feels especially timely. His work invites readers to consider how the economic challenges of the colonial era resonate with modern policy debates. “In the aftermath of decades of bad policies that caused a global financial crisis and a pandemic, maybe historians will finally agree that the American Revolution was also about bad government policies,” he says. “If we don’t want another revolution, we need to work together to limit governmental power, and hence the damage that bad policies can do.”

Dr. Wright’s article underscores the value of CMU’s faculty in bridging academic research with real-world relevance. Through his work, students and readers alike gain a deeper understanding of the economic underpinnings of pivotal historical events—and how those lessons can inform the present.

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