The Institute of Social Economics: A Neglected Network in New York's Progressive Community

"The School of Social Economics," declared the New York Times in 1893, "while only in the third year of its existence, promises to be one of the successful educational institutions of the day."¹ This school, the Institute of Social Economics, was indeed on its way to prominence. The Institute's president, economist and former labor activist George Gunton, was building his school into a central link in New York City's economic reform network, leading to a position of considerable prestige and political influence for himself. During its existence from 1891 to 1904, the Institute hosted countless intellectuals, social workers, and civil servants for free lectures, exposing audiences to the latest reform ideas. The Institute also spread these ideas far beyond the city, as local chapters formed throughout the country and the YMCA adopted its course program. Such efforts received consistent press attention, making Gunton a household name among reform circles. By the turn of the century, Gunton had translated this power into political influence, having fostered a relationship with Theodore Roosevelt and provided input for state and federal labor policy. In just a decade, the Institute grew from a loose series of public lectures to one of the key institutions in New York's progressive community.

Why, then, does the Institute receive such little attention from historians? It is certainly well known that New York City was an epicenter of progressive reform, and that economists operated as social reformers within this community.² Yet the Institute of Social Economics is virtually unknown. This neglect likely relates to the checkered historiography of Gunton himself, whose prestige suffered due to his unapologetic advocacy of big business. His defense of trusts, coupled with news in 1908 that he had accepted substantial subsidies from the Standard Oil Company, led to his long-standing reputation among the labor movement as a mere corporate shill and sellout. After this news broke, The Independent declared that whenever Gunton said anything about big business, "we should consider it as an advertisement paid for at a high rate."³

For some time, historians responded similarly by either ignoring Gunton or writing off his work as mere propaganda.⁴ Labor historians often ignore him as well, though a few have rediscovered Gunton's early labor activism and proven that he was an important figure in the eight-hour movement. However, their analyses stop before he transitioned into a trust-defending political economist, leaving us with only part of his story.⁵ Gunton is more popular among historians of economic thought. Several have analyzed his unique and unorthodox ideas on political economy, which advocated widespread working-class consumption as an essential economic boost. This viewpoint absolves Gunton somewhat, as it shows that his praise of business was closely related to his particular vision of working-class uplift.⁶ Yet these historians only explore his theoretical work and neglect his reform activities, only noting the institute as a brief biographical introduction, leaving readers with little indication of how popular Gunton actually was.⁷ The historian of consumerism Daniel Horowitz made the logical conclusion that Gunton was simply not very influential in his time, despite producing some fascinating and forward-looking theories.⁸

Gunton only seems unknown, however, when we focus on his minimal impact on contemporary economists. When we step beyond theory and look at him as a reformer within New York's progressive community, we see a much greater influence. Gunton was not simply an obscure figure. He was among the most active reformer-economists of the time, delivering thousands of lectures to clubs all over New York. As a result, he received consistent press coverage as a prominent New Yorker. The New-York Tribune even considered him famous enough to report on when he fell from his horse and broke his leg.⁹ His educational techniques spread nationally and were adopted by institutions like the YMCA. From the level of press coverage alone, Gunton was certainly not an obscure figure.

Furthermore, he was a well-known political actor of the time, a fact hidden by...