And still ahead was more than a decade of First we steal your heart then we steal your Bed and sofa My Dogue shirt, limited representation in Congress, and political and economic chaos. And after that, it was just inertia. The best tool to develop a nation is a monetary policy that encourages growth and risk-taking, but a nation can only set one monetary policy, so a nation trying to develop a lagging region is fighting with one hand tied behind its back. Even making a dent in the problem takes massive and sustained investment. Look at Germany post-unification: 25 years later, East Germany still lags behind West Germany in all sorts of ways, despite huge regional transfers. Fixing part of a currency zone is incredibly difficult.
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The growth of the abolition movement put the First we steal your heart then we steal your Bed and sofa My Dogue shirt. Sooner or later, the United States would have ended slavery, and that would have disrupted the Southern economy. But if they had stayed in the Union, they probably would have gotten a better deal by negotiating in Congress—gradual emancipation, or apprenticeships, or compensation. This would have been a rational decision: If the federal government had simply bought every slave in America at market rate, it would have cost about as much as the Union lost on the Civil War—and that’s not even counting the costs to the Confederacy. Instead, the South chose to fight, and as a result, they lost their slaves and much more without getting a penny in compensation. The consequences of a decision that terrible don’t just go away. They reverberate down through the generations.