The Slaughter of the Bison and Reversal of Fortunes on the Great Plains. Donn. L. Feir, Rob Gillezeau & Maggie E.C. Jones. NBER Working Paper 30368, August 2022. DOI 10.3386/w30368
Abstract: In the late nineteenth century, the North American bison was brought to the brink of extinction in just over a decade. We demonstrate that the loss of the bison had immediate, negative consequences for the Native Americans who relied on them and ultimately resulted in a permanent reversal of fortunes. Once amongst the tallest people in the world, the generations of bison-reliant people born after the slaughter lost their entire height advantage. By the early twentieth century, child mortality was 16 percentage points higher and the probability of reporting an occupation 29.7 percentage points lower in bison nations compared to nations that were never reliant on the bison. Throughout the latter half of the twentieth century and into the present, income per capita has remained 28 percent lower, on average, for bison nations. This persistent gap cannot be explained by differences in agricultural productivity, self-governance, or application of the Dawes Act. We provide evidence that this historical shock altered the dynamic path of development for formerly bison-reliant nations. We demonstrate that limited access to credit constrained the ability of bison nations to adjust through respecialization and migration.
VII. Conclusion
At the beginning of the nineteenth century, the North American bison roamed the Great Plains in the tens of millions, but by 1880, the bison were nearly extinct, the result of a mass slaughter that occurred within as little as 10 years. This is the first paper to empirically quantify the persistent effects of the slaughter on the Native American nations who relied on the bison for over 10,000 years prior to its extinction. We compile historical, anthropological, geographic, and modern economic data to show that the elimination of the bison affected the well-being of the Indigenous peoples who relied on them, both immediately after the bison’s decline, and up to 150 years later. We argue that the loss of the bison resulted in a reversal of fortunes: historically, bison-reliant societies were among the most well-off people on the continent, but today, they are among the poorest.
We study the dynamic path of development through which this shock has persisted into the present day and demonstrate that early access to credit could have mitigated the persistent effects of the loss of the bison. While the loss of the bison was a unique historical event, large regional economic shocks are not. Similarly, Native Americans occupy a unique institutional space in the United States but barriers to adjustment, like costly migration, low levels of development, and credit constraints are common. The experiences of the formerly bison-reliant peoples, important in their own right, also shed light on how economic shocks can persist for decades in the absence of access to other financial resources.
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