Financial History Issue 122 (Summer 2017) | Page 16
Secession erupted not when the North
moved to abolish slavery, but merely when
its candidate for President, Abraham Lin-
coln, hinted that he would eliminate fed-
eral subsidies for slavery. Aware that those
subsidies were what made slavery profit-
able, enslavers faced the real possibil-
ity of slavery unwinding rather quickly,
certainly at a great loss to themselves, or
instigating a war that they just might win.
They of course chose the latter.
Throughout history, enslavers have
received massive public subsidies in
order to be able to afford to keep people
enslaved. Not even so-called voluntary
slaves, those who enslaved themselves
in times of famine in order to survive,
wanted to be slaves. Slaves almost con-
stantly resisted their bondage in ways
large and small. Some, like Aesop (of fable
fame), perplexed their masters at every
turn. Others played the dutiful servant
until an opportune time to escape pre-
sented itself. Still others joined Spartacus
or other slave rebels. Yet others lever-
aged knowledge of their masters’ affairs
(amorous or business) to gain advantages.
Slaves were a most troublesome property,
as evidenced by the large, complex legal
codes that applied to them wherever their
legality remained sacrosanct.
Today, slavery is illegal, but it still cre-
ates large negative externalities. Its illegal-
ity encourages corruption, ranging from
payoffs to border guards and police offi-
cers to the wholesale purchase of judges
and other local administrators. As Kevin
Bales shows in his most recent book,
Blood and Earth: Modern Slavery, Eco-
cide, and the Secret to Saving the World
(2016), today’s slaves are at the literal
cutting edge of deforestation, on deck for
over-fishing and adding fuel to the fires of
pollution-spewing brick kilns and other
dirty manufacturing ventures. The eco-
nomic metaphor of slavery as pollution
has become reality as illicit activities like
drug, arms and sex trafficking reinforce
and strengthen each other.
Bales hopes that painting enslavers
as polluters will help add some green
momentum to the modern antislavery
movement. The fact that slavery is a
moral abomination and bad for economic
14 FINANCIAL HISTORY | Summer 2017 | www.MoAF.org
growth and development has thus far
not proven sufficient motivation for most
people to donate to Free the Slaves or
other antislavery NGOs. Some govern-
ments, though, are waking up to the fact
that despite what some historians of capi-
talism argue, allowing slavery to persist in
their nations or other jurisdictions is not
about to stimulate growth. For growth,
they need to look to the policies of Alex-
ander Hamilton, who was a major critic of
slavery.
Robert E. Wright is the Nef Family Chair
of Political Economy at Augustana Uni-
versity, where he has taught courses in
business, economics, government and
history since 2009. He is the co-author or
co-editor of more than 20 books, includ-
ing most recently The Poverty of Slavery:
How Unfree Labor Pollutes the Econ-
omy (Palgrave Macmillan, 2017), from
which this article has been adapted. He is
on the editorial advisory board of Finan-
cial History magazine and has served on
the board of Historians Against Slavery,
an antislavery NGO, since 2012.