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Originally Posted by bobman0330
Is there any real economic analysis of this issue? Some of these points are interesting, but I don't really see a mechanism for slavery to improve the long-term prospects of the U.S. For example, I've seen the comparison of the market vale of slaves to railroads and factories before, but it's pretty much an apples-to-oranges comparison, because slaves were labor, not capital. If you enslaved the north's working population, those new slaves would doubtless be worth much more than the south's slaves.
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this article talks about the value of slavery to the American economy just before the war. I was talking to a historian last week about this question, and he said its been a long debated question that has recently shifted to the side of slavery as a positive economic influence. He linked the belief that slavery was unprofitable with the Dunning School and other lost cause style perspectives. I should have asked for book references.
You're probably right that the comparison of labor and capital isn't particularly helpful. Its certainly thrown around a lot by historians. I haven't given it a ton of thought.
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The argument about labor scarcity is also a little muddled. The north had much higher population than the south, because of immigration (and maybe a lower death rate among free people). So importation of unfree labor didn't really work that well and arguably made it much harder to attract immigrants.
Immigration didn't really take off until the 1840's, and was driven at least as much by conditions in Europe as in America. The slave trade ended in 1808, having imported around half a million slaves from Africa that you would have to replace in early and colonial America (more actually, since you could extract more value from a slave than a wage laborer by controlling movement and threatening violence). Morgan's American Slavery, American Freedom talks about the critical role tobacco played in both instigating and winning the American Revolution. Well before the North took off economically, the US was securing its freedom and actively expanding on the strength of Southern agricultural exports.
Morgan and Acemoglu in Why Nations Fail both talk about precolonial America turning to slavery importation after the failure of free immigration to provide sufficient labor.
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There's no doubt the plantation system was great for producing cotton, but again it's not clear why exactly that was good for the country's long-term future. I can't find figures, but I would wager that a sizeable majority of U.S. cotton production was shipped overseas to British mills, presumably crowding out to some extent northern manufacturing exports.
From the first article I linked - "Northern merchants gained from Southern demands for shipping cotton to markets abroad, and from the demand by Southerners for Northern and imported consumption goods. The low price of raw cotton produced by slave labor in the American South enabled textile manufacturers — both in the United States and in Britain — to expand production and provide benefits to consumers through a declining cost of textile products."
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Plus, from a political angle, the Slave Power did a lot to impede pre-war "internal improvements" like canals, roads, and railroads that could have promoted industrial development. Not to mention sparking a ruinous war that killed a ton of people and destroyed huge parts of the country.
A more urbanized, industrial South would be an interesting counterfactual. It was such a massive supplier of cotton that nearly the entire economic history of the world would have to change to accommodate it.
Something about Hitler, for some reason.