This chapter explores the argument that slavery played a role in economic development, debunking it with research that suggests slavery hindered economic growth. It discusses the advantages of inexpensive labor like slaves, but also the importance of avoiding resource allocation distortions caused by low prices. The chapter moves on to highlight the impact of machines in industrialization, emphasizing their role in raising living standards and the shift in global geopolitics.
Did nations get rich on the backs of other nations? Did the West get rich from imperialism? Noah Smith says no. But why not? If you can steal stuff, isn't that better than having to make it yourself? Listen as Noah Smith and EconTalk's Russ Roberts discuss the impact of imperialism and industrialization on growth and wealth. Smith argues that understanding plunder and where wealth comes from is more than an exercise in economic history--it matters for today's world, too.