3 Lessons From Over 200 Years of America

Main Idea: The United States has become the richest nation ever, but not without our bumps and bruises along the way. History shows us that we are quite adaptable and courageous in times of uncertainty and calamity and I'm outlining 3 of my main takeaways below.

US of A

The United States is widely recognized—by both outsiders and insiders—for many things, but money and wealth are among the most prominent.

As a result, our nation has a deep and colorful financial history, filled with bold moves and a fair share of mischief since its founding in 1776.

I recently finished reading Mark J. Higgins, CFA, CFP® book, and I can confidently say I’ve learned more about our nation’s financial past and key historical events in two months of reading than I ever did in decades of school.

(I don’t blame the teachers—I blame my own lack of attention back then. Athletes, man)

With that in mind, here are 3 key takeaways from the book that I think are worth considering.

1. Decades of Shaky Ground

The U.S. financial system was unstable for decades after its founding, burdened by war debt and chaotic state-issued currencies.

There's no doubt we opened a 6-pack on the Redcoats, but our financial situation had some growing to do.

Alexander Hamilton (not just famous for a play on Broadway) saved it with bold reforms like creating the first Bank of the United States and establishing a national currency.

Hamilton’s life ended prematurely when he was killed in a duel in 1804, but his groundwork shaped the nation’s financial future.

Beyond this, two early central banks failed, leaving the system fragile again.

I was previously unaware we've had three central banks in this nation in total.

And yet it seems like many citizens have hated them all, haha.

Ultimately, what we now see as a force that is unbreakable, it took our nation several decades to even find strong footing much less become what it was after WW1 and 2.

We have men like Hamilton to thank for getting us through the initial decades of turmoil, and I'd even mention business tycoons like JP Morgan as well, even though he's a bit more gray character it seems.

2. The Financial System Has Always Been Filled with Snakes

People hate Wall Street—and maybe rightfully so.

But let me tell you, if you think it’s bad now, you’d despise it after learning about the Gilded Age.

The Gilded Age (1870s–1900s) was a period of rapid economic growth—and rampant corruption.

Wealthy tycoons like Jay Gould and Cornelius Vanderbilt ruled the markets with ruthless cunning, relying on insider trading and stock manipulation to build their empires.

Gould, for instance, tried to corner the gold market in 1869, triggering a financial panic when the scheme collapsed.

The number of shenanigans detailed in this book is staggering—it could fill an entire article.

Suffice it to say, fraud was practically a sport, and insider trading was the easiest path to profits.

The worst part? It was all completely legal.

Ordinary investors didn’t stand a chance. Without rules to protect them, they were easy prey for financial snakes.

It wasn’t until the Great Depression of the 1930s that reforms were finally enacted.

The creation of the Securities and Exchange Commission (SEC) in 1934 brought much-needed transparency and accountability to the markets.

Programs like the SEC and FDIC established safeguards, making it possible for people like you and me to invest without constantly looking over our shoulders for fraudsters.

We're quite comfortable leaving millions of our life savings in the markets today, but it was not always so.

3. We've Always Been Fearful of the Future

If you ask the average Joe walking on the street today how the world is doing, they'd probably say it's crazy...lost it's mind...worse than ever.

And while an argument can be made for this and against this, I've found from this book it seems it's always been that way.

Throughout U.S. history, fear of the future has been a constant theme.

Whether driven by economic uncertainty, political shifts, or social changes, this dread often arises during times of crisis.

Despite the recurring nature of these fears, history has shown that the country tends to overcome challenges and adapt.

• Cyclical Fears: Economic downturns, such as the Panic of 1837 or the Great Depression, have historically triggered widespread fear about the future. These cycles of financial hardship, while devastating in the moment, have always been followed by recovery and periods of growth. The 2008 financial crisis, for example, sparked fears of long-term economic collapse, yet the U.S. economy has since rebounded.
• Resistance to Change: From Alexander Hamilton’s financial programs in 1790 to the rise of technology and globalization in the 21st century, Americans have often feared change. In the late 1800s, there were concerns that industrialization would destroy jobs and traditional ways of life, yet it was precisely through embracing these changes that the U.S. became an economic powerhouse.
• Psychological Barriers: The fear of uncertainty often leads to inaction, which is a recurring theme in U.S. financial history. The book explains how, during speculative manias like the dot-com bubble or the housing bubble of the mid-2000s, investors’ fear of missing out (FOMO) and a failure to prepare for the downside caused widespread financial harm. Learning from past mistakes is crucial in avoiding these psychological traps.

All of this to say our future being bright is not a guarantee, but we have a strong history as a nation of taking our bumps and moving on to be better than before.

CONCLUSION

I fear I must stop here or else I'd be writing a book of my own.

Consider reading this if you are a student of finance, history, or both, like myself.

This book was 600 pages so I know it's no light read, but it went by very fast with the amount of info packed into it.

Finally, here is a link to the book if you'd like to check it out for yourself.

I hope these reflections have been helpful, and I shall see you next time.

Follow Up to Read or Watch: If you are not a book person, I'd also recommend this podcast with Niall Ferguson who's also a history-buff on money.

Action Item: While studying history has a bit of a stigma that it's boring and useless, I think we a real epidemic of young people not actually understanding how the financial system works and what the goal of the stock market is. It is valuable for literally anyone to learn about the past, as it generally foreshadows many future events.

My name is Jordan McFarland and I'm a CERTIFIED FINANCIAL PLANNER™ at SageSpring Wealth Partners in Dallas, TX.

My goal with these brief articles is not to make you an expert, but get you thinking about ways you can optimize your finances and get ahead for tomorrow.

If any questions or thoughts come up during your reading, you can email me at jordan.mcfarland@sagespring.com.

Unfortunately, I must keep these articles rather vanilla and short in order that I do not trip any compliance wires. I'd be happy to meet with you to hear about your specific goals when the time comes.

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