The Review of Austrian Economics

, Volume 22, Issue 1, pp 1–19 | Cite as

Inputs and institutions as conservative elements

Article

Abstract

Ludwig von Mises argued that capital goods were “conservative elements” that constrain future production decisions. Similarly, social capital and institutions also constrain future production decisions. These insights are applied to the institutional transformation of the post-Reconstruction American South. It is argued that the structure of social capital that developed in the South was inappropriate to the formal institutions that emerged as a result of the Civil War and Reconstruction. The tensions between institutions and social capital are examined in the context of racist lynching.

Keywords

US South Racism Lynching Social capital Institutions 

JEL codes

B53 N11 N91 O18 

References

  1. Acemoglu, D. (2003). Why not a Political Coase Theorem? Social conflict, commitment, and politics. Journal of Comparative Economics, 31(4), 620–652.CrossRefGoogle Scholar
  2. Allen, J., Als, H., Lewis, J., & Litwack, L. F. (2003). Without sanctuary: Lynching photography in America. Santa Fe: Twin Palms.Google Scholar
  3. Alston, L. J. (1986). Race etiquette in the South: The role of tenancy. Research in Economic History, 10, 199–211.Google Scholar
  4. Alston, L., & Ferrie, J. (1993). Paternalism in agricultural labor contracts in the US South: Implications for the growth of the Welfare State. American Economic Review, 83(4), 854–876.Google Scholar
  5. Alston, L., & Ferrie, J. (1999). Southern paternalism and the American Welfare State: Economics, politics, and institutions in the South 1865–1975. Cambridge: Cambridge University Press.Google Scholar
  6. Becker, G. (1957). The economics of discrimination, 1st Edition. Chicago: University of Chicago Press.Google Scholar
  7. Becker, G. (1971). The economics of discrimination, 2nd Edition. Chicago: University of Chicago Press.Google Scholar
  8. Bell, D. A. (1978). The racial imperative in American law. In R. Haws (Ed.) The Age of segregation: Race relations in the South, 1890–1945 (pp. 3–28). Jackson: University Press of Mississippi.Google Scholar
  9. Bernstein, D. E. (2001). Only one place of redress: African-Americans, labor regulations, and the courts from reconstruction to the new deal. Durham: Duke University Press.Google Scholar
  10. Boettke, P. J., Coyne, C. J., & Leeson, P. T. (2005). Institutional stickiness and the new development economics. Working Paper: George Mason University.Google Scholar
  11. Carden, A. (2006). Institutions and Southern Development: Lynching as a Signal of Insecure Property Rights. PhD Dissertation, Washington University in Saint Louis.Google Scholar
  12. Chamlee-Wright, E. (2005). The structure of social capital: An Austrian perspective on its nature and development. Working Paper: Beloit College.Google Scholar
  13. Coyne, C. J. (2005). The institutional prerequisites for post-conflict resolution. Review of Austrian Economics, 18(3/4), 325–342.CrossRefGoogle Scholar
  14. Coyne, C. J., & Leeson, P. T. (2005). The plight of underdeveloped countries. Cato Journal, 24(3), 235–249.CrossRefGoogle Scholar
  15. Curry, J. L. M. (1896a). Education of the Negroes Since 1860. In Report of the Commissioner of Education for the year 1894–1895 ( p. 1374–1396). Washington DC: Government Printing Office.Google Scholar
  16. Curry, J. L. M. (1896b). Address to the general Assembly of Georgia, 10/31/1893. In Report of the Commissioner of Education for the year 1894–1895 (pp. 1291–1297) Washington DC: Government Printing Office.Google Scholar
  17. David, P. A. (1985). Clio and the economics of QWERTY. American Economic Review, 75(2), 332–337.Google Scholar
  18. DiLorenzo, T. J. (2002). The consolidation of state power via Reconstruction, 1865 1890. Journal of Libertarian Studies, 16(2), 139–161.Google Scholar
  19. Dray, P. (2002). At the hands of persons unknown: The lynching of black America. New York: Random House.Google Scholar
  20. Easterly, W. (2005). Reliving the ‘50s: the Big Push, Poverty Traps, and Takeoffs in Economic Development. Center for Global Development Working Paper Number 65.Google Scholar
  21. Finnegan, T. (1998). The equal of some white men and the superior of others: Masculinity and the 1916 lynching of Anthony Crawford in Abbeville County, South Carolina. In P. Spierenburg (Ed.) Men & violence: Gender, honor, and rituals in modern Europe and America (pp. 240–254). Columbus: Ohio State University Press.Google Scholar
  22. Fogel, R. W. (1989). Without consent or contract: The rise and fall of American slavery. New York: W.W. Norton.Google Scholar
  23. Ginzburg, R. (1962). 100 years of lynchings. New York: Lancer Books.Google Scholar
  24. Ginzburg, R. (1988). 100 years of lynchings. Baltimore: Black Classic.Google Scholar
  25. Glaeser, E. L. (2005). The political economy of hatred. Quarterly Journal of Economics, 120(1), 45–86.CrossRefGoogle Scholar
  26. Granovetter, M. S. (1973). The strength of weak ties. American Journal of Sociology, 78(6), 1360–1380.CrossRefGoogle Scholar
  27. Grimsted, D. (1998). American mobbing, 1828–1861: Toward civil war. New York: Oxford University Press.Google Scholar
  28. Gwartney, J., Lawson, R., & Holcombe, R. (1999). Economic freedom and the environment for economic growth. Journal of Institutional and Theoretical Economics, 155, 643–663.Google Scholar
  29. Gwartney, J., Lawson, R., & Holcombe, R. (2005). Economic freedom, institutional quality, and cross-country differences in income and growth. Cato Journal, 24(3), 205–233.CrossRefGoogle Scholar
  30. Higgs, R. (1977). Competition and coercion: Blacks in the American economy, 1865–1914. Cambridge: Cambridge University Press.Google Scholar
  31. Jones, E. L. (1988/2003). Growth recurring: Economic change in world history. Ann Arbor: University of Michigan Press.Google Scholar
  32. Knack, S., & Keefer, P. (1997). Does social capital have an economic payoff? A cross-country investigation. Quarterly Journal of Economics, 112(4), 1252–88.CrossRefGoogle Scholar
  33. Litwack, L. (2000). Hellhounds. In J. Allen, H. Als, J. Lewis, & L. Litwack (Eds.) Without sanctuary: Lynching photography in America. Santa Fe: Twin Palms.Google Scholar
  34. Maddison, A. (2005). Growth and interaction in the world economy: The roots of modernity. Washington, DC, USA: AEI.Google Scholar
  35. Margo, R. A. (1995). The South as an economic problem: Fact or fiction? In L. J. Griffin, & D. H. Doyle (Eds.) The South as an American problem (pp. 164–180). Athens: University of Georgia Press.Google Scholar
  36. Margo, R. A. (2004). Ideology, Government, and the American Dilemma. Vanderbilt University Working Paper No. 04-W11.Google Scholar
  37. Markovitz, J. (2004). Legacies of lynching: Racial violence and memory. Minneapolis: University of Minnesota Press.Google Scholar
  38. Mokyr, J. (1990a). The lever of riches. New York: Oxford University Press.Google Scholar
  39. Mokyr, J. (1990b). Twenty-five centuries of technological change: An historical survey. Chur: Harwood Academic.Google Scholar
  40. NAACP (1969/1919). Thirty years of lynching, 1889–1918. New York: Arno Press and the New York Times.Google Scholar
  41. North, D. C. (1990). Institutions, institutional change, and economic performance. Cambridge: Cambridge University Press.Google Scholar
  42. North, D. C. (2005). Understanding the process of economic change. Princeton: Princeton University Press.Google Scholar
  43. Nye, J. V. C. (1997). Thinking about the state. In J. N. Drobak, & J. V. C. Nye (Eds.) The frontiers of the new institutional economics (pp. 121–142). San Diego: Academic.Google Scholar
  44. Putnam, R. D. (2000). Bowling alone: The collapse and revival of American community. New York: Simon & Schuster.Google Scholar
  45. Ransom, R. L., & Sutch, R. (1977). One kind of freedom: The economic consequences of emancipation. London: Cambridge University Press.Google Scholar
  46. Sowell, T. (1981). Ethnic America: A history. New York: Basic Books.Google Scholar
  47. Tolnay, S. E., & Beck, E. M. (1995). A festival of violence: An analysis of southern lynchings, 1882–1930. Urbana and Chicago: University of Illinois Press.Google Scholar
  48. Von Mises, L. (1996/1949). Human action: A treatise on economics, 4th Revised Edition. San Francisco: Fox & Wilkes.Google Scholar
  49. Waldrep, C. (2002). The many faces of Judge Lynch: Extralegal violence and punishment in America. New York: Palgrave-McMillan.Google Scholar
  50. White, W. (1929). Rope and faggot: A biography of Judge Lynch. New York: Alfred A. Knopf.Google Scholar
  51. Wiener, J. M. (1978). Social origins of the New South: Alabama, 1860–1885. Baton Rouge and London: Louisiana State University Press.Google Scholar
  52. Wright, G. (1976). Prosperity, progress, and American slavery. In P. A. David, et al. (Ed.) Reckoning with slavery: A critical study in the quantitative history of American negro slavery (pp. 302–336). New York: Oxford University Press.Google Scholar
  53. Wright, G. (1986). Old South, New South: Revolutions in the Southern economy since the Civil War. New York: Basic Books.Google Scholar

Copyright information

© Springer Science+Business Media, LLC 2008

Authors and Affiliations

  1. 1.Department of Economics and BusinessRhodes CollegeMemphisUSA

Personalised recommendations