
Colonial Incomes Up to 40% Higher Than British Counterparts, Driving Growth and Immigration
Matthew Yglesias, a prominent political commentator, recently highlighted a significant economic disparity in the 18th century, stating that "Incomes 50 percent higher in the Colonies which led to both higher rates of natural increase (earlier marriage, lower child mortality) and also mass immigration." This assertion underscores a key factor in the rapid development of the American colonies compared to their European counterparts.
Historical economic data supports the notion of a higher standard of living in colonial America. According to historian Alice Hansen Jones, the average annual income for Americans at the close of the colonial era was approximately 13.85, notably higher than the 10-12 average in Great Britain. This economic advantage, sometimes reaching 30-50% higher wages in the early 19th century, was primarily driven by abundant natural resources, readily available land, and a persistent scarcity of labor. This created a strong economic pull for settlers and immigrants.
These favorable economic conditions had profound demographic consequences. The availability of land and higher wages meant families could establish themselves more easily, leading to earlier marriages and subsequently higher birth rates. While specific comparative data on child mortality rates for the entire colonial period versus Britain is complex to isolate, the overall "natural increase" in population is well-documented. The promise of economic opportunity also acted as a powerful magnet for mass immigration from Europe, further swelling the colonial population.
The combination of higher incomes and accessible resources fostered a dynamic environment where families could grow and prosper. This economic prosperity, as noted by Yglesias, was a fundamental driver behind both the internal demographic expansion and the continuous influx of new arrivals, shaping the future trajectory of the burgeoning American nation.