Slavery and the new history of capitalism

The new history of capitalism (NHC) places a great deal of emphasis on slavery as a crucial world institution. Slavery, it is alleged, arose out of, and underpinned, capitalist development. This article starts by showing the intellectual and scholarly foundations of some of the broad conclusions of the NHC. It proceeds by arguing that capitalist transformation must rely on a global framework of analysis. The article considers three critiques in relation to the NHC. First, the NHC overemphasizes the importance of coercion to economic growth in the eighteenth century. We argue that what has been called ‘war capitalism’ might be better served by an analysis in which the political economy of European states and empires, rather than coercion, is a key factor in the transformation of capitalism at a global scale. Second, in linking slavery to industrialization, the NHC proposes a misleading chronology. Cotton produced in large quantities in the United States came too late to cause an Industrial Revolution which, we argue, developed gradually from the latter half of the seventeenth century and which was well established by the 1790s, when cotton started to arrive from the American South. During early industrialization, sugar, not cotton, was the main plantation crop in the Americas. Third, the NHC is overly concentrated on production and especially on slave plantation economies. It underplays the ‘power of consumption’, where consumers came to purchase increasing amounts of plantation goods, including sugar, rice, indigo, tobacco, cotton, and coffee. To see slavery’s role in fostering the preconditions of industrialization and the Great Divergence, we must tell a story about slavery’s place in supporting the expansion of consumption, as well as a story about production