TITLE:
From Plantation Ledgers to Corporate Balance Sheets: How Slavery in the United States Led to the Modern Managerial Accounting System and the Modern US Economy
AUTHORS:
Celine Ebert
KEYWORDS:
Financial Accounting, Slavery, Managerial Accounting, Economy, History, United States
JOURNAL NAME:
Open Journal of Business and Management,
Vol.12 No.4,
July
26,
2024
ABSTRACT: This paper explores the profound impact of slavery on the development of modern managerial accounting systems and the American economy. Starting in 1619 with the arrival of the first enslaved Africans in Virginia, slavery rapidly became integral to the colonial economy. By the mid-19th century, innovative accounting practices among Southern plantation owners, such as those documented by Thomas Walter Peyre, demonstrated sophisticated management of slave labor and productivity, influencing modern business practices. The transatlantic slave trade significantly contributed to the economic growth of the United States, with slave-grown cotton becoming a primary export driving the Industrial Revolution. Post-Civil War, the legacy of slavery continued to shape economic policies and business management. Today, the remnants of these practices are evident in modern accounting standards and the ongoing discourse on reparations for descendants of enslaved individuals. This study highlights the need to address historical injustices through strategic reforms and transparent accounting practices.