Readify

John Macarthur

Why Nations Fail: The Origins of Power, Prosperity, and Poverty

John Macarthur was a prominent leader of the Squatters, the powerful pastoral elite of New South Wales. He sought influence over the colony’s institutions, but neither his standing nor the policies favored by his circle could halt the expansion of political participation. The later contest over Australia’s goldfields echoed the same choice between concentrated control and access open to a wider public.

Position in the Colonial Order

Until 1823, the governor of New South Wales ruled largely on his own. That year, Britain limited the governor’s powers by establishing an appointed council. Its first members came from the Squatters and the non-convict elite, and Macarthur was among them. The arrangement gave the colony’s established interests a place in government, but it could not contain growing demands for representation.

The council’s initial composition was temporary in effect. In 1831, Governor Richard Bourke yielded to pressure and for the first time allowed former convicts to serve on juries. Former convicts and many free settlers also opposed continued transportation from Britain, which increased competition for work and drove wages down. The Squatters favored low wages, but they failed to preserve transportation: it ended in New South Wales in 1840. In 1842, a legislative council was created with two-thirds of its members elected, and property-owning former convicts could vote and stand for office.

Resistance and Political Change

By the 1850s, Australia had introduced adult white male suffrage, carrying popular demands well beyond the political order Macarthur’s circle had initially helped shape. William Wentworth, another prominent figure in the colony’s conservative elite, had by then taken the side of those defending an unelected legislative council. The account presents this as a broader reversal among the old leadership: established figures could resist change, but neither Macarthur nor those who followed him could stop the movement toward more inclusive institutions.

New South Wales’s trajectory is set beside that of Jamestown, founded 181 years earlier. Neither colony had a dense Indigenous population readily available for exploitation, precious metals at hand, or crops and soil suited to profitable slave plantations. Although slavery remained widespread in the 1780s and New South Wales could have been populated with enslaved people if doing so had been profitable, it was not. Soldiers and free settlers, like the Virginia Company in its colony, gradually yielded to pressures that helped produce more inclusive economic and political institutions. In New South Wales, the shift came with less struggle than in Virginia, and later attempts to reverse it failed.

The Goldfields and Macarthur’s Legacy

Gold discovered in 1851 in New South Wales and the newly created state of Victoria drew attention to a new contest over who would control valuable resources. James Macarthur, John Macarthur’s son, proposed fencing the mining areas and auctioning monopoly rights. The proposed arrangement would have made the goldfields resemble the Sierra Leone Selection Trust, a company that held privileged access to diamond fields. It offered concentrated control rather than open entry.

The proposal did not prevail. Australian authorities allowed anyone who paid an annual license fee to search and dig for gold. The miners, known as diggers, soon became a powerful political force, particularly in Victoria, where they helped advance universal suffrage and the secret ballot. In 1856, Victoria and Tasmania became the first places in the world to introduce an effective secret ballot, a measure that stopped vote buying and coercion. Macarthur’s place in the narrative thus rests not on a victory over the widening electorate, but on the limits of elite influence as political participation and access to economic opportunity expanded.