The settlers’ fortunes: Comparing tax censuses in the Cape Colony and early American Republic

Stellenbosch Working Paper Series No. WP05/2022
 
Publication date: July 2022
 
Author(s):
[protected email address] (Department of Economics, Stellenbosch University)
[protected email address] (Department of Leadership and American Studies, Christopher Newport University)
 
Abstract:

Europeans at the end of the eighteenth century had settled across the globe, from North and South America to Australia to the southern tip of Africa. While theories of institutional persistence explain the ‘reversal of fortunes’ between settled and unsettled regions, few studies consider the large differences in early living standards between settler societies. This paper uses newly transcribed household-level tax censuses from the Dutch and British Cape Colony and the United States shortly after independence to show comparative levels of income and wealth over four decades both between the two regions and within them. Cape farmers were, on average, more affluent than their American counterparts. While crop output and livestock were more unequally distributed at the Cape, slave ownership in America was more unequal. There was little indication of an imminent reversal of fortunes.

 
JEL Classification:

N37

Keywords:

settler economies, comparative development, slavery, inequality, colonies

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