Celebrating the Founding Engineer: Colonel Harwood's Indelible Mark on Economic Research

The American Institute for Economic Research (AIER) commemorates the 125th birthday of its visionary founder, Colonel Edward Crosby Harwood, a man whose disciplined, data-driven approach to economics safeguarded individual liberty and shaped an institution with lasting impact.

From Military Engineer to Economic Visionary

The journey of Edward Harwood is one of intellectual curiosity and resolute determination. In the wake of World War I’s tumultuous aftermath, Harwood, then a young officer, found himself absorbing economic knowledge in library alcoves. His self-taught prowess was not just a testament to his inquisitive nature but also an embodiment of unprecedented tenacity.

Despite limited resources, Harwood’s scholarship thrived, leading him to publish articles for prestigious economic journals by the early 1920s. His research unveiled troubling signs of credit overexpansion, ultimately foreseeing economic tribulations ahead. According to The Daily Economy, Harwood’s accurate predictions during the Great Depression spurred him to create an enduring institution.

Building an Institution of Insight

Guided by recommendations from MIT’s Dr. Vannevar Bush, Harwood established AIER in 1933—a beacon of wisdom situated in Great Barrington, Massachusetts. This nonprofit research organization, among America’s oldest, remains committed to its core mission: understanding and navigating economic cycles.

Harwood’s academic laurels continued to flourish alongside AIER’s growth. With degrees from Rensselaer Polytechnic Institute, Harwood balanced military duties with economics teaching positions at MIT, embodying a rare blend of military prowess and economic foresight.

A Wartime Leader with Enduring Principles

World War II saw Harwood return to active duty, serving with distinction in England and the Pacific. His leadership was acknowledged with prestigious awards, including the Legion of Merit and a Bronze Star. The tales of Harwood’s military service, such as the story of a cherished Elgin watch gifted by recruits, reveal a leader whose fairness and horsemanship inspired loyalty and respect.

The Philosopher of Economics

In post-war years, Harwood’s dedication to AIER’s mission amplified as he championed hard-money principles, educating the public about monetary inflation’s perils. His communication style, rooted in American pragmatism, made complex economic theories accessible to all, democratizing knowledge once reserved for academic elites.

Legacy Beyond Borders

Harwood’s legacy encompasses not only AIER’s sustained influence but also his familial ties, enriched by thirteen grandchildren and ten great-grandchildren. As we celebrate a century and a quarter since his birth, Harwood stands as a paragon of intellectual courage and public service. His commitment to melding economic insight with military discipline serves as a lasting reminder of one individual’s potential to effect meaningful change. His life’s work continues to inspire, demonstrating the profound impact of steadfast leadership in warning of potential dangers and building frameworks for future prosperity.