America’s GDP: The Business of Exploiting People from Colonization to Today
The Legacy of Human Commodification and Its Modern-Day Parallels
Introduction
As we continue our Black August series, "Deconstructing the American Business Model," it becomes increasingly clear that America's Gross Domestic Product (GDP) has always revolved around its exploitation of people. From the enslavement of Africans and the forced displacement of Indigenous peoples to the manipulation of immigration laws and labor policies, the United States has consistently treated human beings as the most valuable and expendable resource in its economic engine. This article explores how the business model of the United States has relied on people as its core "asset," driving economic growth through exploitation and control.
What is GDP?
Gross Domestic Product (GDP) is a measure of the economic output of a country. It represents the total value of all goods and services produced over a specific time period. In traditional economic terms, GDP is a key indicator of a country's economic health. However, when we consider America's history, it's evident that the labor and bodies of marginalized groups—enslaved Africans, Indigenous peoples, and immigrant workers—have been treated as the true GDP, fueling the nation's growth and wealth accumulation.
Understanding GDP: What It Measures and What It Hides
Gross Domestic Product (GDP) is a measure of the market value of all finished goods and services produced within a country during a specific time frame. It is often used to gauge the economic performance of a nation, with higher GDP figures indicating stronger economic growth and prosperity. However, GDP is not just about numbers—it’s about the people behind those numbers. GDP counts the output of human labor, yet it does not differentiate between labor that is fairly compensated and labor that is exploited. It does not account for the value of unpaid labor, such as caregiving, nor does it consider the environmental and social costs of production. This narrow focus on economic output often masks the deeper, more troubling aspects of how that output is achieved.
The Enslavement of Africans: The Foundation of American Wealth
The transatlantic slave trade forcibly brought millions of Africans to the Americas, where they were dehumanized, commodified, and exploited for labor. Enslaved Africans were treated as property, and their labor was the bedrock of America's economic rise. Plantation economies in the Southern states relied entirely on the forced labor of enslaved people, who produced the vast majority of the country's wealth through the cultivation of cash crops like cotton, tobacco, and sugar.
Modern-Day Parallel: The Prison-Industrial Complex
Today, the exploitation of Black bodies continues through the prison-industrial complex, where incarcerated individuals, disproportionately African American, are forced into labor under conditions that closely resemble slavery. These prisoners often work for pennies per hour, producing goods and services that generate profit for private companies and the state.
Business Correlation: Workforce as Capital
In modern business terms, enslaved Africans were the capital that drove America's early economic growth. Just as businesses today rely on capital investment to fuel growth, the forced labor of enslaved Africans was the "investment" that powered the nation's burgeoning economy. This workforce was considered an asset that could be bought, sold, and exploited for maximum profit, much like capital in today's financial markets.
Forced Breeding: Expanding the Labor Force
Even after the transatlantic slave trade was officially banned, the demand for labor remained high. Slaveholders turned to forced breeding practices, treating human reproduction as a means to increase their "assets" without incurring additional costs. Enslaved women were forced to bear children who would themselves become property, ensuring a continuous supply of laborers to sustain the plantation economy.
Modern-Day Parallel: Systemic Racism and Economic Exploitation
The legacy of forced breeding continues in the form of systemic racism that disproportionately affects Black women. Black women face higher rates of maternal mortality, economic exploitation, and restricted reproductive rights, reflecting how their bodies are still controlled and exploited within the economic system.
Business Correlation: Internal Growth Strategy
Forced breeding can be likened to an internal growth strategy in business, where a company seeks to expand its operations and increase its workforce from within, rather than through external acquisitions. By forcibly increasing the population of enslaved Africans, slaveholders were able to sustain and grow their labor force without relying on external sources, maximizing their control and profits.
Indigenous Lands of Turtle Island: The Seizure of Resources
The Doctrine of Discovery provided European settlers with the religious and legal justification to seize Indigenous lands across Turtle Island (North America). Indigenous peoples were forcibly removed from their ancestral homes, and their lands were appropriated to expand the colonial economy. These lands were rich in resources—minerals, timber, fertile soil—and their acquisition fueled the growth of the American economy.
Modern-Day Parallel: Environmental Racism and Resource Exploitation
The exploitation of Indigenous lands continues today through environmental racism, where Indigenous communities are disproportionately affected by pollution, resource extraction, and land degradation. Pipelines, mining operations, and deforestation often occur on or near Indigenous lands, continuing the legacy of exploitation.
Business Correlation: Asset Acquisition and Resource Management
The seizure of Indigenous lands is akin to a business acquiring valuable assets to enhance its operations. Just as corporations today seek to acquire resources to strengthen their market position, colonial powers appropriated Indigenous lands to bolster their economic growth. The displacement of Indigenous peoples and the exploitation of their lands were seen as necessary steps to ensure the profitability of the American enterprise.
Restrictive Immigration Laws: Controlling the Workforce
As America's economy grew, so did its need for labor. However, not all labor was valued equally. The United States implemented a series of restrictive immigration laws to control the flow of immigrant workers, ensuring that only those who would fit into the existing racial and economic hierarchies were allowed entry. Laws like the Chinese Exclusion Act of 1882 and the Immigration Act of 1924 were designed to protect the jobs and status of white Americans while exploiting the labor of marginalized groups.
Timeline of Immigration Policies
1790: Naturalization Act – Restricted citizenship to "free white persons."
Explanation: This act established the first rules for acquiring U.S. citizenship, limiting naturalization to "free white persons" of good character. It explicitly excluded Indigenous peoples, enslaved Africans, and free Black individuals from becoming citizens, reinforcing the racial hierarchy that favored white immigrants.
Business Correlation: Market Entry Barriers This act is analogous to a business setting high barriers to entry to protect market share. By restricting citizenship, the U.S. limited who could participate in the economy and access its benefits, ensuring that only those deemed valuable (i.e., white persons) could contribute to and benefit from the nation’s economic growth.
1882: Chinese Exclusion Act – Banned Chinese laborers from entering the U.S.
Explanation: The Chinese Exclusion Act was the first significant law restricting immigration into the United States. It specifically targeted Chinese laborers, banning their entry and preventing those already in the U.S. from becoming citizens. This act was a response to the growing anti-Chinese sentiment and fears of job competition.
Business Correlation: Competitive Exclusion This law can be compared to a business strategy where a dominant player excludes competitors from the market to maintain control. By banning Chinese laborers, the U.S. government ensured that white workers faced less competition for jobs, preserving economic opportunities for them while marginalizing Chinese immigrants.
1924: Immigration Act – Established quotas that favored Western European immigrants.
Explanation: The 1924 Immigration Act, also known as the Johnson-Reed Act, established national origin quotas that heavily favored immigrants from Western Europe while severely limiting those from Southern and Eastern Europe, Asia, and Africa. This act aimed to preserve the racial and ethnic composition of the U.S. as predominantly white.
Business Correlation: Preferred Supplier Agreements This policy is akin to a business favoring specific suppliers to maintain quality and consistency in its products. By favoring Western European immigrants, the U.S. government ensured that the workforce remained predominantly white, reflecting the racial biases of the time and maintaining the social and economic status quo.
1942-1964: Bracero Program – Brought Mexican laborers to the U.S. for agricultural work under exploitative conditions.
Explanation: The Bracero Program allowed Mexican laborers to work temporarily in the U.S. under highly exploitative conditions, particularly in agriculture. These workers were often underpaid, worked in poor conditions, and had few legal protections, making them an easily exploitable labor force.
Business Correlation: Temporary Staffing Solutions The Bracero Program is similar to a business using temporary staffing agencies to fill labor needs at lower costs. By bringing in Mexican laborers on temporary contracts, the U.S. agricultural industry could exploit cheap labor without providing the benefits and protections typically afforded to permanent employees, maximizing profit margins.
1965: Immigration and Nationality Act – Abolished the quota system but introduced new forms of labor exploitation through temporary worker visas.
Explanation: The 1965 Immigration and Nationality Act abolished the previous national origin quotas but introduced new forms of labor exploitation through temporary worker visas like the H-2A and H-2B programs. These programs allowed industries to import laborers under conditions that often led to exploitation, particularly in low-wage sectors.
Business Correlation: Outsourcing and Contract Work This policy resembles a business model where companies outsource labor or hire contract workers to reduce costs. By using temporary worker visas, the U.S. could meet its labor demands without committing to long-term employment, reducing labor costs and increasing flexibility at the expense of workers' rights and stability.
2020: Family Separation Policy – Targeted immigrants from Central and South America, reflecting ongoing racialized labor exploitation.
Explanation: The 2020 Family Separation Policy, implemented under the Trump administration, forcibly separated immigrant families at the U.S.-Mexico border. This policy disproportionately targeted immigrants from Central and South America, contributing to a climate of fear and uncertainty among immigrant communities while reflecting broader trends of racialized labor exploitation.
Business Correlation: Hostile Takeover Tactics This policy can be likened to a hostile takeover in business, where aggressive strategies are used to destabilize and dominate competitors. By targeting and destabilizing immigrant communities, the policy reinforced racial and economic hierarchies, making it easier to exploit these vulnerable populations for low-wage labor while maintaining control over the workforce.
Modern-Day Parallel: The Gig Economy and Exploited Labor
Today, immigrant workers continue to be exploited in low-wage industries such as agriculture, construction, and domestic work. The gig economy, with its lack of labor protections and benefits, disproportionately affects immigrant workers, perpetuating the cycle of exploitation.
Business Correlation: Market Segmentation and Workforce Management
Restrictive immigration laws functioned much like market segmentation in business, where companies target specific customer demographics to maximize profits while excluding others. By controlling which groups could enter the country and participate in the labor market, the United States ensured that its workforce remained stratified and manageable, with certain groups relegated to the lowest tiers of the economic hierarchy.
Roe v. Wade and Reproductive Rights: Controlling the Population
The 1973 Roe v. Wade decision, which legalized abortion in the United States, was a significant moment in the fight for women's reproductive rights. However, the subsequent backlash and the ongoing efforts to overturn or limit abortion access reveal a deeper connection to America's business model of population control. Restricting reproductive rights is a way to control the size and composition of the population, ensuring a steady supply of labor that can be easily exploited.
Modern-Day Parallel: The Overturning of Roe v. Wade
The recent overturning of Roe v. Wade has severe implications for reproductive rights, particularly for women of color and low-income women. This decision is part of a broader strategy to control population growth and maintain economic and racial hierarchies, ensuring that marginalized communities remain vulnerable to exploitation.
Business Correlation: Workforce Management and Population Control
In business, controlling the workforce is essential for maintaining productivity and profitability. The restriction of reproductive rights functions as a means of population control, ensuring that the labor force remains large and economically disadvantaged, making it easier to exploit. Just as businesses manage their workforce to optimize efficiency and profitability, the U.S. has historically managed its population to maintain a labor force that can be easily controlled and exploited.
The Birth of the New York Stock Exchange: Trading Human Capital
The New York Stock Exchange (NYSE) is one of the most powerful financial institutions in the world, but its origins are deeply intertwined with the trade of human beings. In the early days of American finance, enslaved Africans were among the first "stocks" traded on Wall Street. These human "assets" were bought and sold like commodities, their value determined by their ability to generate profit for their owners.
Modern-Day Parallel: Commodification of Labor in Global Markets
Today, labor continues to be commodified on a global scale, with multinational corporations exploiting workers in developing countries for cheap labor. The outsourcing of jobs to countries with fewer labor protections is a direct continuation of the practice of treating human beings as capital.
Business Correlation: Capital Markets and Human Resources
The trading of enslaved Africans on the NYSE can be seen as an early form of human resources management, where the value of labor is commodified and traded in the market. Just as companies today issue stocks to raise capital, the buying and selling of enslaved Africans provided the capital necessary to fuel America's economic growth. This practice laid the groundwork for the modern financial system, where the exploitation of labor continues to be a key driver of economic activity.
Population Control as a Business Strategy
America’s business model has always relied on controlling the size and composition of its labor force. From the breeding of enslaved Africans to restrictive immigration laws and reproductive rights, the U.S. has consistently manipulated its population to ensure a steady supply of labor that can be easily exploited. Population control has been a critical component of maintaining the country’s economic dominance.
Modern-Day Parallel: Mass Incarceration and the Labor Force
The mass incarceration of predominantly Black and Brown people serves as a modern form of population control, removing individuals from the labor market while simultaneously exploiting their labor in prison. This strategy ensures a continued supply of cheap labor while maintaining social control over marginalized communities.
Business Correlation: Workforce Optimization and Population Management
In business, workforce optimization involves managing the size and composition of the workforce to maximize productivity and profitability. Population control in the U.S. serves a similar purpose, ensuring that the labor force remains manageable and economically disadvantaged. By controlling the population through laws, policies, and social structures, the U.S. government has been able to maintain a workforce that is easily exploited and controlled, much like how businesses manage their employees to optimize efficiency.
Conclusion: A Business Model Built on Exploitation
From the enslavement of Africans to the displacement of Indigenous peoples, the manipulation of immigrant labor, the control of reproductive rights, and the assimilation of poor whites, the United States has consistently treated human beings as its most valuable and expendable resource.
Poor whites, often European immigrants, were manipulated into supporting the very systems that oppressed them. They were promised the American Dream—a vision of prosperity and upward mobility—only to find themselves at the lower rungs of the social and economic ladder. By offering them marginal privileges over Black and Indigenous peoples, the American business model kept poor whites invested in a system that exploited their labor while keeping them divided from other oppressed groups. This tactic ensured that the elite could maintain control and continue to profit from the exploitation of all marginalized communities.
This exploitation has been a driving force behind America's economic growth, creating wealth for a select few while perpetuating cycles of inequality and oppression for the majority. The history of America’s GDP reveals that its true wealth has always been built on the backs of those it has exploited, whether through the forced labor of enslaved Africans, the dispossession of Indigenous lands, or the exploitation of poor whites and immigrant labor. This business model, rooted in division and exploitation, continues to thrive today in various forms, from wage disparities to systemic racism and xenophobia.
As we continue to explore the deconstruction of the American business model during Black August, it is crucial to recognize that the exploitation of people—across races, classes, and ethnicities—has always been, and continues to be, the true GDP of America. Understanding this is key to dismantling the structures that uphold inequality and to reimagining a more just and equitable society.
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