WHAT AMERICA OWES FOR 246 YEARS OF SLAVERY

For 246 years, enslaved Black people built the foundation of America's economy. They worked without pay, while their enslavers became rich. That wealth was then passed down, invested, and multiplied over generations. If we were to calculate the real cost of reparations—including not just lost wages but the investments and wealth that grew from it—the number would be staggering. Let’s break it down in simple terms.

1. Unpaid Labor: The Starting Point

Historians estimate that by 1860, there were about 4 million enslaved people in the U.S. If we assume a fair wage of just $3 per day (which is extremely low), working 12-hour days for 246 years, we get a shocking number:

• Total workdays: ~90 billion (4 million enslaved people working an average of 300 days per year for 246 years)

• Unpaid wages: ~$270 billion (90 billion workdays × $3 per day)

• Adjusted for inflation: This equals roughly $10 to $15 trillion in today’s dollars.

But that’s just the beginning.

2. Lost Investment Wealth

Had enslaved people been paid for their labor, they could have saved and invested. Instead, those who enslaved them kept the money, passed it down, and built generational wealth. Let’s see what that means:

• If even 10% of those wages ($27 billion) had been saved and invested at a 5% annual return, by today that money would have grown to over $100 trillion.

• Instead, that money fueled the growth of white wealth—funding businesses, land purchases, education, and investments that Black people were locked out of.

  
  

3. The Cotton Economy and U.S. Growth

Slavery wasn’t just free labor—it was the backbone of the American economy. By 1860:

• Cotton, produced by enslaved people, was over 50% of U.S. exports.

• Banks, insurance companies, and Northern industries made fortunes financing slavery and processing cotton.

• The entire U.S. economy benefited, with an estimated $3 billion GDP boost in 1860 alone (equal to $100 trillion today when factoring in economic growth).

  
  

4. Racial Wealth Gap: The Ongoing Cost

Even after slavery ended, Black Americans were denied opportunities to build wealth through Jim Crow laws, redlining, and job discrimination. Today:

• White families have 6 times the wealth of Black families.

• The U.S. racial wealth gap is $14 trillion—a direct result of stolen labor and economic exclusion.

• If Black Americans had the same wealth accumulation rates as white Americans since 1865, Black communities would have at least $20-30 trillion more in assets today.

  
  

What Would Reparations Look Like?

Given this history, reparations should go beyond a single payout. Meaningful reparations could include:

• Direct payments to descendants of enslaved people.

• Land grants and housing assistance, reversing past discrimination.

• Education and business funding to create lasting economic opportunities.

• Policy changes to close the racial wealth gap for future generations.

  
  

Final Thoughts

Slavery wasn’t just a moral crime—it was an economic system that made America rich while leaving Black Americans in poverty. The cost of reparations isn’t just about paying for past labor; it’s about fixing a system that still benefits one group over another today. The numbers don’t lie - America owes a debt, and it’s time to pay it.

Thanks for reading. Abrazos.

Diego Rojas