Slavery, Institutions and the "Dismal Science"
During Eco330 discussion of Engerman and Sokoloff's hypotheses on the role of institutions versus other factors in explaining different development outcomes, Jed brought up the very interesting origin of "The Dismal Science" as a term to refer to the field of Political Economy. It dates back to debates between anti-abolition writers such as Thomas Carlyle and, the target of his criticisms, John Stuart Mill and Adam Smith.
Like many other Europeans of the time Carlyle believed that the origin of differences between countries and regions had to do with race and 'cultural characteristics' between peoples whereas political economists such as John Stuart Mill argued that, to quote Adam Smith "The difference of natural talents in different men is, in reality, much less than we are aware of.." and instead that it was institutions and incentives that led to such divergent performance outcomes. Based on his views on the primacy of institutions John Stuart Mill advocated (and in some cases advised colonial government on) land and tenancy reforms in British colonies, including Ireland and India, and supported the abolition of slavery, in order to improve worker/tenant incentives and raise taxable output.
Carlyle labeled political economy the 'dismal science' because he saw political economists supporting calls for the emancipation of slaves, which he felt would lead to dismal consequences.
Like many other Europeans of the time Carlyle believed that the origin of differences between countries and regions had to do with race and 'cultural characteristics' between peoples whereas political economists such as John Stuart Mill argued that, to quote Adam Smith "The difference of natural talents in different men is, in reality, much less than we are aware of.." and instead that it was institutions and incentives that led to such divergent performance outcomes. Based on his views on the primacy of institutions John Stuart Mill advocated (and in some cases advised colonial government on) land and tenancy reforms in British colonies, including Ireland and India, and supported the abolition of slavery, in order to improve worker/tenant incentives and raise taxable output.
Carlyle labeled political economy the 'dismal science' because he saw political economists supporting calls for the emancipation of slaves, which he felt would lead to dismal consequences.
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