Impact of Slavery and Colonialism on Western Capitalism
A report asserts that the British Empire and other major European powers did not significantly enrich themselves through slavery and colonialism, but may have taken a net loss instead. The head of Political Economy at the IEA argues that while some individuals profited immensely, the public at large bore steep costs in military and administrative spending to maintain colonies.
Key Points
- Profits from colonialism did not significantly impact macroeconomic aggregates
- Colonialism did not play a major role in financing the Industrial Revolution
- Countries without colonial holdings industrialized at similar rates as dominant colonial powers
- Economic policy and governance indicators are better predictors of a country's wealth than colonial history
Pros
- Challenges the narrative that Western capitalism was built on the backs of colonialism and slavery
- Highlights the high costs in military and administrative spending to maintain colonies
Cons
- Acknowledges that places colonized did experience long-term negative effects
- Suggests that colonialism and slavery were more like a negative-sum game