John R. Commons
Encyclopedia
John Rogers Commons was an American institutional economist
and labor historian
at the University of Wisconsin–Madison
.
, John R. Commons had a religious upbringing which led him to be an advocate for social justice early in life. After graduating from Oberlin College
, Commons earned his PhD at Johns Hopkins University
, where he studied under Richard T. Ely
and, after appointments at Oberlin and Indiana University, began teaching at Syracuse University
in 1895. In spring 1899 Syracuse dismissed him as a radical. Eventually Commons re-entered academia at the University of Wisconsin in 1904.
Commons' early work exemplified his desire to unite Christian ideals with the emerging social sciences of sociology
and economics
. He was a frequent contributor to Kingdom magazine, was a founder of the American Institute for Christian Sociology, and authored a book in 1894 called Social Reform and the Church. He was an advocate of temperence legislation and was active in the national Prohibition Party
. By his Wisconsin years, Commons' scholarship had become less moralistic and more empirical, however.
Commons believed that carefully crafted legislation could create social change; this view led him to be known as a socialist radical and incrementalist. He also believed that the so-called white races were more fit for democracy than the so-called tropical races, and his 1907 book Races and Immigrants in America helped lay the groundwork for the later eugenics movement.
Commons is best known for developing an analysis of collective action
by the state
and other institution
s, which he saw as essential to understanding economics.
In this analysis, he continued the strong American tradition in institutional economics by such figures as the economist and social theorist Thorstein Veblen
. His notion of transaction is one of the most important contribution to Institutional Economics. This institutional theory was closely related to his remarkable successes in fact-finding and drafting legislation on a wide range of social issues for the state of Wisconsin
. He drafted legislation establishing Wisconsin's worker's compensation program, the first of its kind in the United States
.
In 1934, Commons published Institutional Economics which laid out his view that institutions were made up of collective actions that, along with conflict of interests, defined the economy. In Commons' view, institutional economics added collective control of individual transactions to existing economic theory. Commons considered the Scottish economist Henry Dunning Macleod
to be the "originator" of Institutional economics.
Commons was a contributor to The Pittsburgh Survey
, an 1907 sociological investigation of a single American city. His graduate student, John A. Fitch
, wrote The Steel Workers, a classic depiction of a key industry in early twentieth-century America. It was one of six key texts to come out of the survey. Edwin E. Witte
, later known as the "father of social security" also did his PhD at the University of Wisconsin–Madison
under Commons.
Commons undertook two major studies of the history of labor unions in the United States
. Beginning in 1910, he edited A Documentary History of American Industrial Society, a large work which preserved many original source documents of the American labor movement. Almost as soon as that work was complete, Commons began editing History of Labor in the United States, a narrative work which built on the previous 10-volume documentary history.
Today, Commons' contribution to labor history is considered equal to his contributions to the theory of institutional economics. He also made valuable contributions to the history of economic thought
, especially with regard to collective action. His racist writing is not well known today, and he is honored at the University of Wisconsin in Madison with rooms and clubs named for him.
--"Institutional Economics" American Economic Review, vol. 21 (1931), pp. 648–657.
Institutional economics
Institutional economics focuses on understanding the role of the evolutionary process and the role of institutions in shaping economic behaviour. Its original focus lay in Thorstein Veblen's instinct-oriented dichotomy between technology on the one side and the "ceremonial" sphere of society on the...
and labor historian
Labor history (discipline)
Labor history is a broad field of study concerned with the development of the labor movement and the working class. The central concerns of labor historians include the development of labor unions, strikes, lockouts and protest movements, industrial relations, and the progress of working class and...
at the University of Wisconsin–Madison
University of Wisconsin–Madison
The University of Wisconsin–Madison is a public research university located in Madison, Wisconsin, United States. Founded in 1848, UW–Madison is the flagship campus of the University of Wisconsin System. It became a land-grant institution in 1866...
.
Biography
Born in Hollansburg, OhioHollansburg, Ohio
Hollansburg is a village in Darke County, Ohio, United States. The population was 214 at the 2000 census.-History:On March 28, 1838, local landowner James Stewart platted a community in northwestern Harrison Township and named it "Union." When William Hollaman, another landowner, attempted to...
, John R. Commons had a religious upbringing which led him to be an advocate for social justice early in life. After graduating from Oberlin College
Oberlin College
Oberlin College is a private liberal arts college in Oberlin, Ohio, noteworthy for having been the first American institution of higher learning to regularly admit female and black students. Connected to the college is the Oberlin Conservatory of Music, the oldest continuously operating...
, Commons earned his PhD at Johns Hopkins University
Johns Hopkins University
The Johns Hopkins University, commonly referred to as Johns Hopkins, JHU, or simply Hopkins, is a private research university based in Baltimore, Maryland, United States...
, where he studied under Richard T. Ely
Richard T. Ely
Richard Theodore Ely was an American economist, author, and leader of the Progressive movement who called for more government intervention in order to reform what they perceived as the injustices of capitalism, especially regarding factory conditions, compulsory education, child labor, and labor...
and, after appointments at Oberlin and Indiana University, began teaching at Syracuse University
Syracuse University
Syracuse University is a private research university located in Syracuse, New York, United States. Its roots can be traced back to Genesee Wesleyan Seminary, founded by the Methodist Episcopal Church in 1832, which also later founded Genesee College...
in 1895. In spring 1899 Syracuse dismissed him as a radical. Eventually Commons re-entered academia at the University of Wisconsin in 1904.
Commons' early work exemplified his desire to unite Christian ideals with the emerging social sciences of sociology
Sociology
Sociology is the study of society. It is a social science—a term with which it is sometimes synonymous—which uses various methods of empirical investigation and critical analysis to develop a body of knowledge about human social activity...
and economics
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
. He was a frequent contributor to Kingdom magazine, was a founder of the American Institute for Christian Sociology, and authored a book in 1894 called Social Reform and the Church. He was an advocate of temperence legislation and was active in the national Prohibition Party
Prohibition Party
The Prohibition Party is a political party in the United States best known for its historic opposition to the sale or consumption of alcoholic beverages. It is the oldest existing third party in the US. The party was an integral part of the temperance movement...
. By his Wisconsin years, Commons' scholarship had become less moralistic and more empirical, however.
Commons believed that carefully crafted legislation could create social change; this view led him to be known as a socialist radical and incrementalist. He also believed that the so-called white races were more fit for democracy than the so-called tropical races, and his 1907 book Races and Immigrants in America helped lay the groundwork for the later eugenics movement.
Commons is best known for developing an analysis of collective action
Collective action
Collective action is the pursuit of a goal or set of goals by more than one person. It is a term which has formulations and theories in many areas of the social sciences.-In sociology:...
by the state
State (polity)
A state is an organized political community, living under a government. States may be sovereign and may enjoy a monopoly on the legal initiation of force and are not dependent on, or subject to any other power or state. Many states are federated states which participate in a federal union...
and other institution
Institution
An institution is any structure or mechanism of social order and cooperation governing the behavior of a set of individuals within a given human community...
s, which he saw as essential to understanding economics.
In this analysis, he continued the strong American tradition in institutional economics by such figures as the economist and social theorist Thorstein Veblen
Thorstein Veblen
Thorstein Bunde Veblen, born Torsten Bunde Veblen was an American economist and sociologist, and a leader of the so-called institutional economics movement...
. His notion of transaction is one of the most important contribution to Institutional Economics. This institutional theory was closely related to his remarkable successes in fact-finding and drafting legislation on a wide range of social issues for the state of Wisconsin
Wisconsin
Wisconsin is a U.S. state located in the north-central United States and is part of the Midwest. It is bordered by Minnesota to the west, Iowa to the southwest, Illinois to the south, Lake Michigan to the east, Michigan to the northeast, and Lake Superior to the north. Wisconsin's capital is...
. He drafted legislation establishing Wisconsin's worker's compensation program, the first of its kind in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
.
In 1934, Commons published Institutional Economics which laid out his view that institutions were made up of collective actions that, along with conflict of interests, defined the economy. In Commons' view, institutional economics added collective control of individual transactions to existing economic theory. Commons considered the Scottish economist Henry Dunning Macleod
Henry Dunning Macleod
-Life:Henry Dunning Macleod was born in Edinburgh, and educated at Eton, Edinburgh University, and Trinity College, Cambridge, where he graduated in 1843. Macleod traveled in Europe, and in 1849 was called to the English bar. He was employed in Scotland on the work of poor-law reform, and devoted...
to be the "originator" of Institutional economics.
Commons was a contributor to The Pittsburgh Survey
The Pittsburgh Survey
The Pittsburgh Survey was a pioneering sociological study of the city of Pittsburgh, Pennsylvania, USA funded by the Russell Sage Foundation of New York. It is widely considered a landmark of the Progressive Era reform movement....
, an 1907 sociological investigation of a single American city. His graduate student, John A. Fitch
John A. Fitch
John Andrews Fitch was an American writer, teacher, and pioneering social investigator of the Progressive Era. He is best known for his contributions to The Pittsburgh Survey, a landmark study of social conditions in a U.S. city....
, wrote The Steel Workers, a classic depiction of a key industry in early twentieth-century America. It was one of six key texts to come out of the survey. Edwin E. Witte
Edwin E. Witte
Edwin E. Witte was an economist who focused on social insurance issues for the state of Wisconsin and for the Committee on Economic Security. While the executive director of the President's Committee on Economic Security under United States President Franklin D...
, later known as the "father of social security" also did his PhD at the University of Wisconsin–Madison
University of Wisconsin–Madison
The University of Wisconsin–Madison is a public research university located in Madison, Wisconsin, United States. Founded in 1848, UW–Madison is the flagship campus of the University of Wisconsin System. It became a land-grant institution in 1866...
under Commons.
Commons undertook two major studies of the history of labor unions in the United States
Labor unions in the United States
Labor unions in the United States are legally recognized as representatives of workers in many industries. The most prominent unions are among public sector employees such as teachers and police...
. Beginning in 1910, he edited A Documentary History of American Industrial Society, a large work which preserved many original source documents of the American labor movement. Almost as soon as that work was complete, Commons began editing History of Labor in the United States, a narrative work which built on the previous 10-volume documentary history.
Today, Commons' contribution to labor history is considered equal to his contributions to the theory of institutional economics. He also made valuable contributions to the history of economic thought
History of economic thought
The history of economic thought deals with different thinkers and theories in the subject that became political economy and economics from the ancient world to the present day...
, especially with regard to collective action. His racist writing is not well known today, and he is honored at the University of Wisconsin in Madison with rooms and clubs named for him.
Quotes
- "...An institution is defined as collective action in control, liberation and expansion of individual action."
- "...But the smallest unit of the institutional economists is a unit of activity -- a transaction, with its participants. Transactions intervene between the labor of the classic economists and the pleasures of the hedonic economists, simply because it is society that controls access to the forces of nature, and transactions are, not the "exchange of commodities," but the alienation and acquisition, between individuals, of the rights of property and liberty created by society, which must therefore be negotiated between the parties concerned before labor can produce, or consumers can consume, or commodities be physically exchanged..."
--"Institutional Economics" American Economic Review, vol. 21 (1931), pp. 648–657.
- "The Chinese and Japanese are perhaps the most industrious of all races, while the Chinese are the most docile. The Japanese excel in imitativeness, but are not as reliable as the Chinese. Neither race, so far as their immigrant representatives are concerned, possesses the originality and ingenuity which characterize the competent American and British mechanic." --Races and Immigrants in America pg. 131.
- "Other races of immigrants, by contact with our institutions, have been civilized--the negro has only been domesticated." --Races and Immigrants in America pg. 41.
Solely authored works
- The Distribution of Wealth. New York: Augustus M. Kelley, 1893.
- Industrial Goodwill. New York: McGraw Hill, 1919.
- Institutional Economics. New York: Macmillan, 1934.
- Labor and Administration. New York: Macmillan, 1913.
- Legal Foundations of Capitalism. New York: Macmillan, 1924.
- Myself. Madison: University of Wisconsin PressUniversity of Wisconsin PressThe University of Wisconsin Press is a non-profit university press publishing peer-reviewed books and journals. It primarily publishes work by scholars from the global academic community but also serves the citizens of Wisconsin by publishing important books about Wisconsin, the Upper Midwest, and...
, 1934. - Proportional Representation. New York: Crowell, 1896.
- Races and Immigrants in America. New York: Macmillan, 1907.
- Social Reform and the Church. New York: Augustus M. Kelley, 1894.
Co-authored works
- Commons, John R. and Andrews, J. B. Principles of Labor Legislation. New York: Harper and Bros., 1916.
- Commons, John R.; Parsons, Kenneth H.; and Perlman, Selig. The Economics of Collective Action. New York: Macmillan, 1950.
- Commons, John R., et al. History of Labor in the United States. Vols. 1-4. New York: Macmillan, 1918-1935.
- Commons, John R., et al. Industrial Government. New York: Macmillan, 1921.
Edited works
- Commons, John R. (Ed.). A Documentary History of American Industrial Society. Vols. 1-10. Cleveland, Ohio: The Arthur H. Clark Co., 1910.
- Commons, John R. (Ed.). Trade Unionism and Labor Problems. Boston: Ginn and Co., 1905.
Further reading
- Barbash, Jack. "John R. Commons: Pioneer of Labor Economics," Monthly Labor Review 112:5 (May 1989) http://www.bls.gov/opub/mlr/1989/05/art4full.pdf
- Coats, A.W. "John R. Commons as a Historian of Economics: The Quest for the Antecedents of Collective Action" in Research in the History of Economic Thought and Methodology, Vol.1, 1983.
- Commons, John R. Myself. Reprint ed. Madison: University of Wisconsin Press, 1964.
- Dorfman, Joseph. The Economic Mind in American Civilization: 1918-1933. Vols. 4 and 5. Reissue ed. New York: Augustus M. Kelley Publications, 1969. ISBN 0-678-00540-0
- Fitch, John A. The Steel Workers. Reprint ed. Pittsburgh: University of Pittsburgh Press, 1910 (1989). ISBN 0-8229-6091-5.
- Parson, Kenneth. "John R. Commons Point of View," Journal of Land and Public Utility Economics (Land Economics) 18(3):245-60(1942).
- Samuels, Warren. "Reader's Guide to John R. Commons Legal Foundations of Capitalism," in Warren Samuels, ed. Research in the History of Economic Thought and Methodology, Archival Supplement 5, Amsterdam: Elsevier 1996.
- Kemp, Thomas. Progress and Reform, Saarbrücken, Germany: VDM Verlag, 2009.
- Fiorito Luca, and Massimiliano Vatiero (2011), "Beyond Legal Relations: Wesley Newcomb Hohfeld's Influence on American Institutionalism". Journal of Economics Issues, 45 (1): 199-222.