In my interview with economist David Henderson, I asked him how economics came to be called the “dismal science.” The source, he explained, was Thomas Carlyle, the nineteenth-century historian and essayist. The surprising reason for his coining the phrase? Carlyle was attacking free-market liberals for advocating the end of slavery.
Free-market liberals argued that all men were equally deserving of freedom, so the slaves should be emancipated. Carlyle counter-argued — with strong agreement from Charles Dickens and John Ruskin, two other strong critics of free-market capitalism — that blacks were unequal to whites and so undeserving and incapable of freedom. Giving slaves freedom, they believed, would lead to dismal social consequences.
Here is a fine essay by David Levy and Sandra Peart with the sorry details: “The Secret History of the Dismal Science. Part I. Economics, Religion and Race in the 19th Century.”
The image, as Levy and Peart explain, shows Ruskin as a white knight slaying a black man dressed in gentlemen’s finery and holding a book entitled Wealth of Nations, Adam Smith’s treatise being a major work in the free-market capitalist tradition.
Side note 1: Carlyle was a major influence, if not the major influence, on the thought of George Fitzhugh, the nineteenth-century American advocate of slavery. Fitzhugh argued that negroes are inferior to whites and that capitalism leads to the dominance of the weak by the strong; hence the freedom of capitalism would be detrimental to the negroes, as they would not be able to hold their own and compete; consequently, slavery’s security is a protection and blessing for them. See especially Fitzhugh’s Cannibals All! Or, Slaves without Masters.
Side note 2: Carlyle was a strong student of German philosophy and literature, particularly of the Kantian disciple Johann Gottlieb Fichte, about whom I have written here.