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Repeal of the Corn Laws in Britain

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

The Repeal of the Corn Laws in Britain was a political victory for manufacturers and other interests newly able to press their case in Parliament. The laws had restricted grain imports when prices fell, protecting large landowners’ profits while raising bread prices and, in turn, the wages manufacturers had to pay. Their repeal in 1846 showed how industrial growth could shift not only wealth but also political influence.

The Corn Laws and competing interests

The Corn Laws barred the import of “corn”—a term for grains and cereals, principally wheat—when prices fell below a specified level. This arrangement benefited large landowners who produced wheat, but burdened manufacturers, whose workers needed bread and whose wage costs rose with its price. The dispute therefore joined economic interests to a larger conflict over who could shape public policy.

That conflict sharpened as factories and industrial centers grew. Birmingham, Leeds, Manchester, and Sheffield had no independent representation in Parliament, while rural areas were overrepresented. The manufacturers concentrated in the expanding towns were thus affected by national policy without having comparable access to the institutions that made it.

Representation and pressure for reform

On August 16, 1819, a meeting at St. Peter’s Fields in Manchester was planned to protest the political system and government policies. Around 60,000 people gathered, many carrying banners calling for an end to the Corn Laws, universal suffrage, and secret ballots. The authorities assembled 600 cavalry; after a warrant was issued for the arrest of the speakers and conflict broke out as police tried to enforce it, the cavalry charged. Eleven people died and probably 600 were wounded. The Manchester Observer called the event the Peterloo Massacre.

Repression did not settle the political conflict. The account presents Peterloo as an isolated incident, while warning that long-term repression could not resolve the pressure created by changes in England’s economic and political institutions. The threat of wider unrest grew, particularly after the 1830 revolution in France against Charles X, who had attempted to restore the absolutism displaced by the French Revolution.

In 1832, the First Reform Act enfranchised Birmingham, Leeds, Manchester, and Sheffield and broadened voting so manufacturers could be represented in Parliament. This did not make the political system fully democratic, but it changed who could exert influence over policy. The reform created a route through which industrial interests could challenge measures that had previously served landowners.

Repeal and redistribution of power

In 1846, manufacturers and their allies in Parliament secured repeal of the Corn Laws. The book treats this outcome as evidence that creative destruction redistributed political power as well as income: the growth of industry produced new groups whose interests could no longer be excluded from decision-making as they had been before reform.

The repeal was therefore more than the removal of a trade restriction. It demonstrated how representation could alter the direction of policy, and how the shift in political power could in turn redistribute income. In the account’s broader argument, England’s more inclusive institutions enabled groups threatened or disadvantaged by economic change to organize, gain access to Parliament, and make it harder for established interests to block change indefinitely.