Blame modern decisions, not just ancient history, for economic inequality | Torsten Bell

07-09-2024 05:00 2 Minutes reading Neutral -0.25
<p>Black Americans whose ancestors were enslaved were still suffering a century later because they lived in states where Jim Crow laws were enforced</p><p>Persistence studies are all the rage in economics – using clever maths to show that events in the distant past drive political or economic outcomes today. <a href="https://onlinelibrary.wiley.com/doi/abs/10.1111/ecoj.12424">One well-known example</a> argued that Britain’s superior growth to France as late as 1800 was shaped by… the collapse of the western Roman empire a millennium before. Here, the collapse saw the population de-urbanise, while in France they remained in Roman-era towns that lasted. So when Britain’s cities re-emerged they were in places better suited to growth in the run-up to the Industrial Revolution.</p><p>Interesting stuff. But persistence studies also breed something dangerous: determinism. If ancient history is so influential, what hope do we have to shape our destiny? Which is why I love a <a href="https://academic.oup.com/qje/advance-article/doi/10.1093/qje/qjae023/7718111">new paper</a> by Lukas Althoff and Hugo Reichardt, examining the lasting economic impact of slavery. Their findings look like the normal persistence story: black Americans whose ancestors were enslaved before the civil war have had significantly worse economic outcomes ever since, compared with black Americans whose forefathers were free – even in 2023, descendants of enslaved people had incomes $11,620 lower than other black Americans.</p><p><em><strong>Do you have an opinion on the issues raised in this article? If you would like to submit a letter of up to 250 words to be considered for publication, email it to us at <a href="mailto:observer.letters@observer.co.uk">observer.letters@observer.co.uk</a></strong></em></p> <a href="https://www.theguardian.com/commentisfree/article/2024/sep/07/blame-modern-decisions-not-just-ancient-history-for-economic-inequality">Continue reading...</a>

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