A C Harwood

Edward Crosby Harwood was an American economist, philosopher of science, and investment advisor, born in 1900. He is primarily recognized for establishing the American Institute for Economic Research (AIER) in 1933, an organization dedicated to economic research that continues to operate today. Harwood also co-founded the Behavioral Research Council (BRC) in the 1950s, an entity focused on applying scientific methodologies to social sciences. His early education included West Point and Rensselaer Polytechnic Institute, followed by a period as an assistant professor at MIT and work with the Army Corps of Engineers.

Throughout his career, Harwood was involved in economic analysis, particularly concerning business cycles and monetary theory. He predicted the Great Depression and was an early advocate for gold-related investments. His philosophical work explored the methodology of the social sciences, advocating for a rigorous, scientific approach. Harwood's legacy includes AIER and the principles he espoused regarding economic stability and scientific inquiry. He passed away in 1980, leaving behind a significant body of work and a lasting impact on economic thought and research institutions.

Harwood developed a keen interest in economics and the philosophy of science from a young age, self-studying extensively. His research led him to analyze banking history and the American economy, culminating in his prediction of a major crisis in the late 1920s. His first book, "Cause and Control of the Business Cycle," published in 1932, was well-received and explained his theories on economic phenomena, including his "Harwood Index of Inflating." A core tenet of his economic thought was the importance of the gold standard and "sound commercial banking," which he defined by specific principles like separating commercial and investment banking and limiting money creation to self-liquidating commercial transactions. He believed that deviations from these principles, particularly the Federal Reserve's increasing power to create money, would lead to monetary instability and the devaluation of the U.S. dollar.

Driven by his research and encouraged by academics like Vannevar Bush, Harwood founded the American Institute for Economic Research (AIER) in 1933. AIER began by publishing newsletters analyzing economic events and research findings for a general audience, later expanding into investment advice and management through a subsidiary. In the early 1950s, he collaborated with sociologists George A. Lundberg and Stuart C. Dodd to establish the Behavioral Research Council (BRC). The BRC aimed to apply rigorous scientific methodologies, similar to those in the natural sciences, to the study of social and behavioral sciences. While BRC was later integrated into AIER, some of its research continues through the Progress Foundation.

Harwood's economic analysis extended to practical investment advice. By the late 1950s, he foresaw the depreciation of the U.S. dollar and, by 1958, began recommending investments in gold mining shares as a hedge against this trend. This foresight positioned him as an early proponent of gold-related investments. After serving in the military during World War II, where he achieved the rank of colonel and received commendations, Harwood dedicated the remainder of his life to his economic and philosophical research. He resided in various locations, including Massachusetts, Bermuda, Switzerland, and California, and was married twice, fathering seven children. He passed away in 1980.