Caitlin Rosenthal: How Slavery Inspired Modern Business Management: "To move beyond denial requires not only an acknowledgment that slaveholders practiced a kind of scientific management but also a broader rethinking of deep-seated assumptions about the relationship between capitalism and control...

...Though there are many exceptions, histories of business practices—at least those that reach a general audience—tend to be both individual and social success stories. They tell stories that are win-win, with businesspeople earning profits and customers, laborers, and communities benefiting along the way. This can, of course, be true. The shift from seeing trade as zero-sum to positive-sum was one of the most important transitions underpinning the rise of capitalism. But capitalism does not make this win-win inevitable.

Growing the pie brings no guarantee about how it will be divided. The sharing of rewards depends on how the rules are written or, differently put, on how markets are regulated. Slavery shows how one particular set of rules enabled precise management but paired its efficiencies with horrifying costs. Slavery also illustrates how certain kinds of market expansion—allowing lives to be bonded in labor and sold—can produce radical inequality. Economic growth can accompany the expansion of freedom and opportunity. But, as in the case of slavery, the expansion of market freedoms for a few can depend on the limitation of all kinds of freedoms for others. Growth can accompany choice, but it can also build on violence and injustice.

Certain kinds of management flourish when managers enjoy a very high level of control over their workers. The rise of scientific management in the late nineteenth century should be seen both as a moment of innovation and as the reemergence of old technologies of control. With the closing of the frontier, workers had fewer opportunities to leave the factory to return to the land. With immigration and rising inequality, manufacturers enjoyed access to a plentiful labor supply. The age of trust and monopoly limited outside options, and collusion meant that even when workers could legally go elsewhere, the circumstances were not necessarily better. Only in circumstances such as these did it make sense for managers such as Taylor to attempt to calculate “what fraction of a horse power a man power is,” with the expectation that this maximum rate of work could be acquired for an hourly wage, or perhaps a wage and a “bonus.”

Modern narratives of capitalist development often emphasize the positive-sum outcomes of many individual choices. They suggest that free, even selfish, decisions go hand in hand with growth and innovation. They often assume that vast wealth accumulated by a few accompanies improved circumstances for many. The history of slavery’s capitalism warns against all these expectations. My new book, Accounting for Slavery, as well as work by historians such as Daina Ramey Berry and Calvin Schermerhorn, shows that slavery in the eighteenth and nineteenth centuries was highly adaptable to the pursuit of profit. Free markets for slaveholders flourished, and their control over men, women, and children expedited production, both by pushing up the pace of labor and by transporting it to new, more fertile soils. Slaveholders’ manipulation of human capital compounded it into massive fortunes—both through financial maneuvering and through human reproduction.

When Harvard Business Review marked its ninetieth anniversary in 2012, Taylor made it into all three featured essays, offering an inspirational point of reference for the ability of managers to transform the broader economy. The business history of plantation slavery offers a very different point of reference—a cautionary tale that warns us what profit-seeking can look like when everything, including lives, is up for sale. The heritage of U.S. business includes both stories of innovation and those of extreme violence. Often the two are deeply intertwined. This was true in specific ways for scientific management, and it was undeniable for plantation slavery. Reckoning with these uncomfortable histories can help us to see the deep connections between capitalism and control and, perhaps, even to find a more humane way forward....