Mitchell was born in Rushville, Illinois, the second child and oldest son of a Civil War army doctor turned farmer. In a family with seven children and a disabled father with an appetite for business ventures "verging on rashness" a lot of responsibility fell on the oldest son. Despite these challenges, Wesley Clair went to study at the University of Chicago and was awarded a PhD in 1899.[3]
The National Bureau was the institution through which Mitchell had greatest influence. There his important associates included Arthur Burns and Simon Kuznets. In his autobiography Kuznets acknowledges his "great intellectual debt to Mitchell."
Mitchell's teachers included economists Thorstein Veblen and J. L. Laughlin and philosopher John Dewey. Although Veblen and Dewey did more to shape Mitchell's outlook, Laughlin supervised his dissertation. Laughlin's main interest was in currency questions; he was a strong opponent of the quantity theory of money. The currency question facing the US in the 1890s was the choice between alternative monetary standards: inconvertible paper, goldmonometallism and gold/silver bimetallism.
Mitchell's thesis, published as A History of the Greenbacks, considered the consequences of the inconvertible paper regime established by the Union in the Civil War. However this, and the follow-up study Gold Prices and Wages Under the Greenback Standard, transcended conventional monetary history of the kind Laughlin did and provided a comprehensive quantitative account of the behavior of the US economy in the recent past.
Business Cycles, 1913
Mitchell's next project, which would occupy him for the rest of his life, was the study and measurement of the business cycle, which was then emerging as the big problem in economics. His magnum opus, Business Cycles appeared in 1913. The Preface begins:
This book offers an analytic description of the complicated processes by which seasons of business prosperity, crisis, depression, and revival come about in the modern world. The materials used consist chiefly of market reports and statistics concerning the business cycles which have run their course since 1890 in the United States, England, Germany and France.
In chapter I Mitchell reviews 13 theories of the business cycle and admits that "All are plausible." He then puts them aside by arguing:
To observe, analyse, and systematise the phenomena of prosperity, crisis, and depression is the chief task. And there is better prospect of rendering service if we attack this task directly, than if we take the round about way of considering the phenomena with reference to the theory.
Mitchell's research strategy was thus quite different from that adopted by H. L. Moore or Irving Fisher who started from a hypothesis and went looking for evidence to support it. Moore and Mitchell offer another contrast in that, while Moore embraced the new statistical methods of correlation and regression, Mitchell found little use for them.[10]
Measuring Business Cycles
Thirty years later, Mitchell was still working on business cycles and he published another large work, Measuring Business Cycles with A.F. Burns. The book presented the characteristic "National Bureau" methods of analyzing business cycles. While Mitchell was still following the 1913 agenda, other economists had taken to studying the economy using models and even to constructing macroeconometric models. Against that background of Keynesian economics and the new econometric methods, Mitchell and his project looked dated.
Milton Friedman believed, "Mitchell is generally considered primarily an empirical scientist rather than a theorist." However, Mitchell's main creative efforts went into his empirical work on business cycles. Mitchell stated an endogenous theory, based on the internal dynamics of capitalism. Whereas neoclassical theories are deduced from unproven psychological axioms, he builds his theory from inductive generalities gained from empirical research. Also, he was considered a critic of conventional economic theory. As influenced greatly by Veblen, Mitchell is usually categorized with him as an American institutionalist.
Mitchell, Wesley C. (November 1914). "Human Behavior and Economics: A Survey of Recent Literature". The Quarterly Journal of Economics. 29 (1): 1–47. doi:10.2307/1885296. JSTOR1885296.
The Making and Using of Index Numbers, Bulletin of the US Bureau of Labor Statistics, 1915. ISBN978-0-678-00098-4
Business Cycles: The Problem and its Setting, New York: National Bureau of Economic Research, 1927. ISBN978-0-405-07608-4
The Backward Art of Spending Money: and other essays, New York: McGraw-Hill, 1937. ISBN978-0-7658-0611-6
Measuring Business Cycles (with A.F. Burns), New York: National Bureau of Economic Research, 1946. ISBN978-0-87014-085-3
What Happens During Business Cycles, New York: National Bureau of Economic Research, 1951. ISBN978-0-87014-088-4
Types of Economic Theory from Mercantilism to Institutionalism, ed. Joseph Dorfman, 2 vols. New York: Augustus M. Kelley, 1967. (Reconstructed from Mitchell's lecture notes). ISBN978-0-678-00234-6
There is a bibliography in the volume edited by Burns (below).
Lucy Sprague Mitchell, Wesley Mitchell's wife, wrote the book Two lives; the story of Wesley Clair Mitchell and myself (New York, Simon and Schuster, 1953).
^Sprague, O. M. W. (June 1916). "Review: Business Cycles by Wesley Clair Mitchell". Journal of Political Economy. 24 (6): 609–611. doi:10.1086/252843. JSTOR1819628.
Fiorito, Luca, and Massimiliano Vatiero. "Wesley Clair Mitchell and the 'Illiberal Reformers' A Documentary Note." History of Political Economy 53.1 (2021): 35-56. online
Ginzberg, Eli. "Wesley Clair Mitchell" History of Political Economy (1997) 29#3 pp 371–390. Reproduces autobiographical essay written in 1931 but never published.
Kuznets, Simon (1949). "Wesley Clair Mitchell, 1874-1948: An Appreciation". Journal of the American Statistical Association. 44 (245): 126–131. doi:10.1080/01621459.1949.10483297.