The Economic Effects of Slavery in the United

States of America
Question to consider:
Why did slavery exist? What was the economic rationale
for the abolition of slavery?
POINTS:

Up until 1676, indentured servants were the primary source for labor in
the New World. Slavery, as noted, had begun almost as soon as the
English colony of Virginia began to be settled, but slaves were a poor
source for labor -- they were very expensive as they had to be fed,
clothed and were less productive than an indentured labourer as there
existed no incentive for them beyond the bare minimum.
Slavery began in earnest after Bacon's Rebellion, in 1676. The
indentured and newly freed servants and small poor white farmers
stormed various plantations and destroyed what they could in protest
against the abusive practices of the large scale farmers. The rebellion
was put down, but afterwards racism was legally enshrined in a series
of acts that were designed to give the poor white farmers more of a
stake in the agrarian economy by excluding black farmers (up until this
time, there were free black farmers who owned slaves!)
--------It was the Supreme Court of the United States that declared in 1857
that the slave Dred Scott could not sue for his freedom because he was
not a person, but property.
The United States governments support of slavery was based on an
overpowering practicality. In 1790, a thousand tons of cotton was being
produced every year in the South. By 1860, it was a million tons. In the
same period, 500,000 slaves grew to 4 million.
Thus, an upsurge in the population of slaves over time also led to an
increase in production.
Slaves were considered assets, or movable property, meaning that
they could be sold, bought and exchanged.
The sudden emancipation of four million slaves would be problematic
for the slave owners and for the economy that drew its greatest profits
from the labor of people who were not paid, mainly the South.

ECONOMIC IMPACT OF THE CIVIL WAR:

The war destroyed much of the wealth that had existed in the South.
All accumulated investment Confederate bonds was forfeit; most banks
and railroads were bankrupt. Income per person in the South dropped
to less than 40% of that of the North, a condition that lasted until well
into the 20th century.
HISTORIOGRAPHY
The historian Peter Kolchin noted that historians of slavery had
primarily concerned themselves with the culture, practices and
economics of the slaveholders, not with the slaves. This was in part
due to the circumstance that most slaveholders were literate and left
behind written records, whereas slaves were largely illiterate and not in
a position to leave written records. Scholars differed as to whether
slavery should be considered a benign or a harshly exploitive
institution.
Much of the history written prior to the 1950s had a distinctive racist
slant to it. By the 1970s and 1980s, historians were using
archaeological records, black folklore, and statistical data to develop a
much more detailed and nuanced picture of slave life. Individuals were
shown to have been resilient and somewhat autonomous in many of
their activities, within the limits of their situation and despite its
precariousness.

BIBLIOGRAPHY:

A People History of the United States Howard Zinn

Gale Encyclopedia of U.S. Economic History
American Slavery, American Freedom HW Brands
The Economic Costs of the Civil War- Burton Folsom