Readify

American Revolution

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

The American Revolution was the culmination of a long institutional development in which colonial assemblies claimed authority over their own membership and taxation. In the book’s account, that history—beginning with the General Assembly in Jamestown in 1619—helped make possible the United States’ later adoption and enforcement of a constitution grounded in democratic principles, limits on political power, and its broad distribution. The transformation was significant, but the political participation on which it rested remained sharply bounded: women, enslaved people, and people without property could not vote.

Colonial Assemblies and Political Rights

By the 1720s, all thirteen colonies that would become the United States had similar governmental structures: each had a governor and an assembly elected on a franchise limited to male property holders. These were not democracies, but the book emphasizes that political rights were comparatively broad for the period. The assemblies and their leaders later coalesced in the First Continental Congress in 1774, a prelude to independence.

The assemblies’ central claims concerned who could make decisions for the colonies. They asserted the right to determine their own membership and to decide on taxation. Those claims created a conflict with the English colonial government, setting a constitutional issue at the heart of the developing break: whether authority over colonial political representation and revenue would rest with local institutions or with imperial power.

A Constitutional Process Before Independence

The book places the American Revolution within a longer process rather than treating constitutional government as an invention made at a single moment. It traces that process to the formation of the General Assembly in Jamestown in 1619, whose institutional legacy culminated in the document drafted by delegates in Philadelphia in May 1787. The constitution that followed, in this account, did not emerge in isolation: it built on generations of colonial experience with assemblies and claims to political authority.

That lineage is presented as a major point of contrast with Mexico. The book argues that the United States adopted and enforced a constitution that espoused democratic principles, limited the use of political power, and distributed power broadly in society. The comparison is not framed as a difference in leaders’ knowledge or good intentions, but as the result of contrasting institutional histories and constraints.

The Spanish Constitutional Crisis as a Contrast

The crisis in Spanish America began with the French invasion of Spain in February 1808. By May, French armies had taken Madrid; by September, Ferdinand VII had been captured and abdicated. The Junta Central took his place in the struggle against the French, moving south as the armies advanced before establishing itself in besieged Cádiz. There it formed the Cortes, which produced the Cádiz Constitution in 1812.

The Cádiz Constitution called for a constitutional monarchy based on popular sovereignty, an end to special privileges, and equality before the law. The book stresses that these demands were unacceptable to South American elites whose authority rested on institutions shaped by the encomienda, forced labor, and colonial state power. The collapse of the Spanish state thus produced a constitutional crisis across colonial Latin America: disputes over whether to recognize the Junta Central encouraged the formation of local juntas and, in time, the possibility of independence. The first declaration came in La Paz in 1809, but Spanish troops sent from Peru quickly crushed it. In Mexico, elite political attitudes were also shaped by the Hidalgo Revolt of 1810, which the book describes as an episode of class or ethnic conflict.

Innovation and the Institutional Legacy

The account connects the political institutions that developed in the United States with a comparatively open environment for innovation. Between 1820 and 1845, only 19 percent of American patentees had parents who were professionals or belonged to recognizable major landowning families; 40 percent had only primary schooling or less. Many used patents to establish firms. The book treats this broad social reach of patenting as a counterpart to the country’s comparatively broad political rights and as important to its later economic innovation.

Access to a patent alone did not guarantee that an inventor could turn an idea into a business. Selling a patent could provide capital, while starting a firm required access to bank loans. The rapid expansion of American banking helped supply that finance: the number of banks grew from 338 in 1818, with total assets of $160 million, to 27,864 in 1914, with assets of $27.3 billion. This later economic development is not itself part of the Revolution, but it extends the book’s account of how institutions that widened access to political participation and economic opportunity could shape the country’s subsequent path.