For more than three hundred years, Mexico City’s Baratillo marketplace was synonymous with crime, vice, and the most disreputable elements of urban society. Despite countless attempts to disband it, the Baratillo persevered, outlasting Spanish colonial rule and dozens of republican governments. In the twentieth century, transformed the neighborhood of Tepito it into a global hub of black-market commerce. Black Market Capital argues that the Baratillo and the broader shadow economy—which combined illicit, informal, and second-hand exchanges—have been central to the economy and the politics of Mexico City since the seventeenth century. The Baratillo benefited a wide swath of urban society, fostering unlikely alliances between elite merchants, government officials, newspaper editors, and street vendors. Vendors in the Baratillo turned their market’s economic appeal into political clout, petitioning colonial and national-era officials and engaging in the capital’s public sphere to defend their livelihoods. Using records from municipal and national archives in Mexico City, newspapers, travelers’ accounts, and novels, Black Market Capital reconstructs the history of one of Mexico City’s most enduring yet least understood institutions. It provides a new perspective on the relationship between urban politics, the informal economy, and public space in Mexico City between the seventeenth and the twentieth centuries.

Upon leaving office in 1716, the Duke of Linares, the viceroy of New Spain, warned his successor of a particularly vexing issue: the question of what to do about Mexico City's Baratillo marketplace. “There is in the Plaza of Mexico,” he wrote, “a traffic prohibited by law or decree that is so problematic that ending it has been a great challenge for me, being that what is stolen [in the city] is sold there, only disguised.” Hipólito Villarroel, writing his treatise about the decadence of Mexico City more than a half-century later, was no more sparing in his description of the market. He referred to it as the “cave or depository for the thieving committed by artisans, maids, and servants, and, in sum, all the plebeians—Indians, mulattos, and the other castas—that are permitted to inhabit this city.” The market was even the subject of a book-length satirical manuscript, written in 1754. Pedro Anselmo Chreslos Jache's unpublished “Ordenanzas del Baratillo” is a legal code for a world turned upside down, where the mixed-race castas reigned and Spaniards were ostracized, and where “four thousand vagabonds” congregated every day to be instructed by “doctors in the faculty of trickery.”

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