The Plum Tree and the Lean-to: A Case Study of Native Americans in 19th Century Economic Thought

Abstract

Nineteenth century economists found the narratives of native life in North America that the Canadian writer John Rae used to illustrate his theories of 'effective desire of accumulation' and capital formation to be useful. However, they did not take to heart Rae's point that accumulation was universal behaviour and ignored his view of native people as economic actors. A disinclination to see native peoples in the same way Rae did, evident in other economists' own descriptions of native life, also meant they missed Rae's central point that accumulation and investment depend essentially on sociological and cultural factors.