State Historical Society of Iowa
In classical free-market economic theory, the "invisible hand" operates best when each person pursues their own best interests to maximize and distribute benefits. Therefore, the economy should be as free as possible from government interference. In practice, however, at all levels, the economy requires a public-private partnership to function. Debate over how much government and how unrestricted the private sector highlights challenges to the free market system.
Iowa was first opened for U.S. settlement in the mid-19th century when two political parties with competing economic philosophies contended for power. The Democrats tended to represent small farmers who wanted minimal government interference and the lowest possible tax assessments. The Whigs tended to support government encouragement of economic growth through internal improvements like roads, support for a strong banking system and tariffs to protect American industries. Party lines in Iowa were not always in line with national leaders. Local communities benefited from the construction and maintenance of roads. There was strong support for federal land grants in the 1850s to railroads to four trunk lines from the Mississippi to the Missouri rivers. However, too many Iowans feared the power and instability of banks, and the first state constitution put strict restrictions on this aspect of the free enterprise system.
How one made money in a small town was not the only factor in the early equation. In many situations, improvements in living conditions depended upon community action outside of government. Churches, private schools beyond what the one-room school offered and social life were collective actions of the community, not the government. No matter how much an individual family earned, they could not enjoy a quality lifestyle if their community did not offer the desired opportunities. Civic engagement in addition to government activity was essential. That sometime meant volunteering and sometimes meant contributing financially to community events and projects.
Today, public and private initiatives are essential to maintain a healthy economy. Commerce cannot run without a solid infrastructure of roads and airports that the government maintains. In Iowa, community colleges train students at government expense to prepare for jobs in private industry. Government agencies match those looking for work with firms that want to hire them through workforce development programs and even provide direct grants or tax incentives to businesses that relocate in the state.
On the private side, local economic development organizations supported by public and private donations work hard to lure and retain private businesses. Local communities provide building sites and offer to expand utility services to new factories or office buildings. Development organizations promote quality in local schools, safety and recreation opportunities that will encourage business executives to think positively about the community.
How much should the government use taxpayer money to benefit private businesses? Why should private citizens invest their own money to support businesses in their communities? The answers lie in the close connection between the desire for quality of life amenities and the necessity for collective action to sustain them. Sometimes they can be achieved only through government action. Sometimes, it is more appropriate to work for them through private organizations. The dividing line between the two approaches has always been a point of controversy.
| Economic Development and Community Growth Teaching Guide |
| Printable Image and Document Guide |
This letter, addressed to "My Dear Friend," was written for The Iowa Patriot. The writer described the important rivers for settlement in Iowa, with an emphasis on the Mississippi River. Burlington served as the territorial capital before it was...
This map of the upper Midwest was included in an atlas of North America published between 1842 and 1845. The map highlights the Iowa and Wisconsin territories, both created in 1836. The Iowa territory had only been opened for settlement in 1836, following...
This map was part of a collection of maps, drawings, and surveys of North America, the United States, and the world created by order of the U.S. Congress in 1843. It depicts the four parts of the Des Moines Rapids, which were located between Ft. Madison a...
Richard P. Morgan was an engineer who surveyed the route for a railroad from Davenport to Iowa City. In this letter published in The Davenport Gazette, Morgan described the results of that survey along with some of the economic opportunities that were pos...
In 1857, Pottawatomie County in western Iowa voted to buy $300,000 worth of stock in the Mississippi and Missouri Railroad Company to ensure that the railroad would go through their county. An economic panic in 1857 kept the railroad company from starting...
This lithograph provided a perspective map of the city of Council Bluffs, Iowa, in 1868. The view of the city is from the southwest, looking to the northeast. The map included the physical features of the area as well as the built city.
The bottom two-thirds of the page provide a perspective map of the city of Muscatine, which was located on the Mississippi River and was one of the important river towns from Iowa's early history. This perspective map depicts the city in 1875 and was ...
This map was drawn by Deputy U.S. Surveyor Guy H. Carleton. The map used information gathered during the U.S. surveys of Iowa. The numbering of sections was based on the Fifth Principal Meridian and its baseline (see note in lower left corner of the map)....
In 1840, the Iowa territory was included in the U.S. Census, but only the county population totals were provided. In 1846, Iowa became a state, and beginning in 1850, population totals were provided for Iowa's cities and towns, as well as for the coun...
In 1856, when this map was published, Iowa was celebrating its 10th year as a state. Nationally, the number of people moving West was increasing, and Iowa was an attractive destination with its fertile soil and relatively good access to markets in the Eas...
Beginning in the mid-1840s, the Platte River Valley became an important avenue for settlers moving west to the Pacific coast. Council Bluffs located on the Missouri River just above the mouth of the Platte River became increasingly important as a jumping-...
This brief article announced a new contract for delivery of mail to Council Bluffs. The U.S. Constitution granted the power to establish post offices and post roads to Congress, so this would have been a federal contract.
The Iowa territory was opened to settlement in 1836. However, settlement was already well established in Illinois. The Mississippi River was an integral part of the transportation network in the upper Midwest and was essential for connecting settlers in t...
This article was published in The Davenport Gazette and it shared the results of an information meeting regarding the building of a railroad from Davenport to Iowa City. Constructing a railroad was enormously expensive, and a variety of methods were used ...
In the first years of Iowa settlement, trade was oriented down the Mississippi River to St. Louis and New Orleans. With the advent of the railroad, Iowa communities began to look East. This story details efforts to raise money for the building of a railro...
By 1857, the efforts to build railroads which had started in eastern Iowa almost a decade earlier had reached the western borders of the state. This letter from Grenville M. Dodge explained the benefits to Council Bluffs and Pottawattamie County of choosi...
Funding construction of railroads required support from multiple levels of government and a mix of public and private funds. The nature of railroads made the actions of any town or city of great interest to other towns or communities on the railroad's...
This brief article announced a new contract for delivery of mail to Council Bluffs. The U.S. Constitution granted the power to establish post offices and post roads to Congress, so this would have been a federal contract.
This article reported on a meeting held in Muscatine with the Lyons Iowa Central Railroad Company. The railroad company was seeking funding to construct a railroad from Muscatine to Iowa City.
In June 1857, Pottawattamie County had a vote on whether to purchase $300,000 worth of stock in the Mississippi and Missouri Railroad Company to aid in the construction of that railroad through the county. By this point, the railroad had been constructed ...
On June 13, 1857, the people of Pottawattamie County voted to buy stock in the Mississippi and Missouri Railroad Company in the amount of $300,000. This editorial, published the following week in Council Bluffs, celebrated that vote but then continued to ...
This news story provided an account of a meeting held at Saratoga in Douglas County, Nebraska. Despite the promises made in the summer of 1857 by the Mississippi and Missouri Railroad Company, little progress had been made on the railroad's constructi...
The digital document from the Iowa Department of Transportation features an extensive history about the evolution of transportation in Iowa.
The website from Living History Farms looks at the continued history of railroads in Iowa.
This webpage from Iowa Public Television features many resources and historical text about railroads in Iowa.
This webpage from the University of Iowa provides a detailed biography of Grenville M. Dodge, a prominent railroad engineer in Iowa.
Listed below are the Iowa Core Social Studies content anchor standards that are best reflected in this source set. The content standards applied to this set are elementary-age level and encompass the key disciplines that make up social studies for students 9th through 12th grade.
| No. | Standard Description |
| SS-US.9-12.18. | Analyze the effects of urbanization, segregation, and voluntary and forced migration within regions of the U.S. on social, political, and economic structures. |
| SS-Geo.9-12.16. | Analyze relationships and interactions within and between human and physical systems to explain reciprocal influences. |
| SS.8.15. | Evaluate how economic decisions affect the wellbeing of individuals, businesses, and society. |
| SS.8.17. | Use historical evidence to evaluate the state of regional economies throughout early American history. |
| SS-Geo.9-12.13. | Employ maps to display and explain the spatial patterns of human and environmental characteristics. |
| SS-Geo.9-12.14. | Integrate multiple geographic representations to explain relationships between the locations of places and regions and their political, cultural, and economic dynamics. |
| SS-Geo.9-12.19. | Analyze the reciprocal relationship between historical events and the spatial diffusion of ideas, technologies, cultural practices and the distribution of human population. |
| SS-Geo.9-12.20. | Assess the impact of economic activities and political decisions on urban, suburban, and rural regions. |
| SS-US.9-12.22. | Evaluate the impact of inventions and technological innovations on the American society and culture. |
| SS-US.9-12.24. | Critique primary and secondary sources of information with attention to the source of the document, its context, accuracy, and usefulness such as the Reconstruction amendments, Emancipation Proclamation, Treaty of Fort Laramie, Chinese Exclusion Act, Roosevelt's Corollary to the Monroe Doctrine, Wilson's Fourteen Points, New Deal Program Acts, Roosevelt's Declaration of War, Executive Order 9066, Truman Doctrine, Eisenhower's Farewell Speech, Gulf of Tonkin Resolution, Test Ban Treaty of 1963, Brown vs. Board of Education decision, Letter from a Birmingham Jail, and the Voting Act of 1965. |
| SS-US.9-12.27. | Evaluate Iowans or groups of Iowans who have influenced U.S. History. |
