Do Markets Make Us Moral?
Markets, Morality, and the Making of Modern America: How Railroads Rewired the American Psyche
A groundbreaking new study tracing the cultural evolution of the United States between 1850 and 1920 reveals that the spread of commercial markets—particularly through the explosive expansion of the railroad network—didn’t just reshape the nation’s economy; it fundamentally rewired how Americans thought about trust, family, and community.
The research, conducted by economists Max Posch of the University of Exeter and Itzchak Tzachi Raz of Hebrew University, offers a sweeping look at how the tendrils of commerce reached into the most intimate corners of American life. Their findings suggest that as distant markets became accessible, Americans began to see the world—and each other—differently.
The study’s methodology was meticulous. The researchers compared regions with varying degrees of market access, using railroad expansion as a proxy for commercial connectivity. They then tracked a series of cultural indicators: marriage patterns, naming conventions, and even the tone of language used in local newspapers. What they found was striking.
In areas with better railroad access, Americans were significantly more likely to marry outside their immediate communities. This wasn’t just a matter of convenience; it represented a fundamental shift in how people viewed relationships and social bonds. The local became less important, the national more so.
This outward-looking trend extended to how parents named their children. In market-connected regions, there was a marked increase in the use of nationally common names, as opposed to locally traditional ones. It was as if the gravitational pull of the broader culture was slowly but surely loosening the grip of local custom.
Perhaps most intriguingly, the researchers found that trust—at least as measured through the language used in local newspapers—increased in market-connected areas. People seemed more willing to engage with strangers, to take risks on those outside their immediate circle. The marketplace, it seemed, was teaching Americans to extend their circle of trust.
But this newfound openness came at a cost. The study found that in areas with greater market access, there was a significant decrease in family-based care for the vulnerable. Orphans, the disabled, and the elderly were less likely to be cared for by relatives at home. As the market expanded, the family contracted.
This finding is particularly poignant. It suggests that the very forces that made Americans more trusting of strangers also made them less reliant on family. The market, in essence, was providing an alternative to familial obligation.
The researchers were careful to rule out the possibility that these changes were simply a result of increased wealth. They found that the cultural shifts were concentrated among migrants in trade-exposed industries. Workers in construction and entertainment, who were less affected by market expansion, showed no similar changes.
This distinction is crucial. It suggests that it wasn’t just economic prosperity driving these changes, but the specific nature of market integration. The railroad didn’t just bring goods; it brought ideas, connections, and a new way of seeing the world.
The implications of this study are profound. It suggests that markets are not neutral forces, but active shapers of culture and morality. They don’t just determine what we buy and sell; they influence how we relate to each other, how we form families, and how we care for the vulnerable.
In the 19th century, the railroad was the great connector, the engine of market expansion. Today, we might think of the internet in similar terms. As we navigate an increasingly connected world, the lessons of this study are more relevant than ever.
Are we, like those 19th-century Americans, becoming more trusting of strangers even as we become less reliant on family? Are our online marketplaces reshaping our social bonds in ways we don’t fully understand?
These are uncomfortable questions, but ones we must grapple with. The study by Posch and Raz doesn’t provide easy answers, but it does offer a powerful reminder: the markets we create don’t just shape our economy; they shape who we are.
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