Home
/
RELIGION & LIBERTY ONLINE
/
Ending Slavery Made America Richer
Ending Slavery Made America Richer
Jan 28, 2026 6:34 AM

There is a near universal agreement that America’s experience with chattel slavery, where people are treated as the chattel or personal property of an owner and are bought and sold as if they modities, was one of our country’s gravest moral horrors. But some people seem to believe that the despicable institution aided the nation’s prosperity.

That’s not the case, explains economist Scott Sumner, who points out that countries with free labor tend to be more prosperous:

Between 1850 and 1880 the market value of slaves falls by just over 100% of GDP. And that decrease is almost precisely offset by a slightly more than 100% increase in capital (industrial and housing.) The total capital stock declines slightly in the Piketty graph, but that’s only because of a fall in the value of agricultural land, not capital.

Now here’s where mislabeling slaves as es into the equation. At first glance it looks like America’s capital stock was unaffected by the abolition of slavery. But the actual capital stock rose by over 100% of GDP—an industrial revolution. If you insist on treating slaves as “capital” it doesn’t change the basic story. Because in that case a separate ledger of “labor resources” would have soared after 1865. Former slaves would now be classified as “labor,” and hence the labor stock would rise dramatically, even on a per capita basis. Either way, abolishing slavery made America a much more productive, and hence richer country.

Now let me anticipate the “yes buts.” Some Americans were made worse off. Obviously slave-owners, and less obviously those who were closely connected to the slave economy (bankers who financed them, cotton mills, etc.) But as Fogel showed (in a study of railroads), when thinking about any economy we tend to mentally overrate the importance of any one sector, especially big sectors. So despite the very real losses to a sizable group of Americans, the economy overall did much better as a result of the abolition of slavery.

From a Christian perspective this finding shouldn’t be all that surprising. Institutionalized restrictions on labor—of which chattel slavery is an extreme form—are contrary to God’s design for economic justice.

As history has shown, human flourishing is predicated on access to God-given freedoms such as religion, conscience, and labor. Violating God’s model for flourishing is never a long-term plan for prosperity — a lesson it has taken America far too long to learn.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Video: Samuel Gregg’s talk at Heritage Foundation on ‘Becoming Europe’
“We’re ing like Europe” captures many Americans’ sense that something has changed in American economic life since the Great Recession’s onset in 2008. An economy once characterized mitments to economic liberty, rule of law, limited government, and personal responsibility appears to be drifting in a distinctly “European” direction. Across the Atlantic, Americans see European economies faltering under enormous debt; overburdened welfare states; high taxation; heavily regulated labor markets; aging populations; large numbers of public-sector workers; and governments controlling close to...
After Pope Benedict Resigns, Fight Against ‘Dictatorship of Relativism’ Goes On
Today, Acton’s Rome office and the world were stunned by what the Dean of the College of Cardinals said was a “bolt out of the blue”: just after midday Benedict XVI informed the public that he would be stepping down as the Catholic Church’s pontiff and one of the world’s preeminent moral and spiritual leaders, effective on February 28. He will be the first pope to abdicate voluntarily the Seat of St. Peter in nearly 600 years. The last one...
Review: Marvin Olasky on Samuel Gregg’s ‘Becoming Europe’
MarvinOlasky,editor in chief ofWORLD Magazine, just listed Samuel Gregg’s ing Europe: Economic Decline, Culture, and How America Can Avoid a European Future in his mid-Winter roundup of books to read. He says: Samuel Gregg’s ing Europe: Economic Decline, Culture, and How America Can Avoid a European Future (Encounter, 2013) is a lucid account of the Europeanization of America’s political culture not only through quasi-socialistic programs but through personnel. Gregg shows how European leaders typically attend indoctrinating universities and then spend...
How a Democratic Education Reformer Became a Supporter of School Vouchers
Michelle Rhee isn’t afraid of controversy. In 2007 she took the job of chancellor of Washington, D.C. public schools, one of the worst districts in the country. Given a free hand by the city’s mayor, she instituted a number of reforms that, while modest and sensible (accountability, standardized testing), were considered “radical” by many residents of D.C. Rhee even fired 266 teachers and defended her actions by saying, “I got rid of teachers who had hit children, who had had...
Rev. Sirico on Pope Benedict XVI’s Resignation
The Rev. Robert Sirico offers his thoughts on the announcement this morning from Pope Benedict XVI that he is resigning from the papal office as of February 28. It is a sobering thought to think that the last time a Pope resigned (Pope Gregory XII in 1415), America had not yet been discovered. Yes, the possibility of a Pope’s resignation is anticipated in Canon Law (Canon 332), as long as it is disclosed “properly” and of his own free will....
Media Alert: Rev. Sirico on Real News
Rev. Sirico will be on Real News tonight between 6-7pm EST. You can find the program on Dish Network (ch. 212) and online at Glenn Beck’s internet channel, The Blaze. ...
Pope Benedict Resigns
Shock waves went through Rome at about noon today and the rest of the Catholic, make that the entire, world, as news came that Pope Benedict XVI will resign as Pope on February 28. We’ll have much more from Rome about this tremendous, unprecedented event (Pope Gregory XII resigned in 1415 in very different circumstances). Here’s what Pope Benedict had to say about a Pope resigning in the 2010 interview Light of the World: Q:The great majority of [the sexual...
A Rapidly Expanding ‘Sindustry’
As occurrences of preventable diseases increase and the debt deepens, some look to “sin taxes” as an easy to solution to both problems. Thirty-three states have even gone as far as to implement a soda tax in an attempt to curb obesity. At first glance sin taxes seem to be a good idea, but they can actually cause more harm than good. The Mercatus Center at George Mason University has just published a working paper on sin taxes and their...
Northern Ireland: Coming to America?
After decades of bloody turmoil between Protestants and Catholics in Northern Ireland, on March 26, 2007, Ian Paisley and Gerry Adams, sitting side-by-side at Stormont confirmed that power-sharing will return to Northern Ireland on May 8th of that same year. It was supposed to be a “new era.” Unfortunately, in order for Ireland to recover from decades of a plicated history it needs a growing economy. Northern Ireland’s economy is in steep decline because it remains such a high-taxed welfare...
Economics Has Consequences
In this abridged version of the video series Economics for Everybody, R.C Sproul Jr. explains why it’s important for Christians to understand economics. Economics Has Consequences pulls together some of the key aspects of the original series into one film, including introductions to such basic principles of economics as stewardship, civil government, work, wealth, and entrepreneurism. The second section explores the impact of government intervention on education, the money supply, welfare, depressions, markets, and more. The video shows why economic...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved