Peonage << PEE uh nihj >> is a system of forced labor in which the peon (laborer) is forced to work in payment of a debt. The English word peon comes from the Spanish word peón, meaning day laborer.
Peonage was common in most of the Spanish colonies of the Americas until the early 1900’s, when many countries of the world passed laws abolishing the practice. In Mexico, many Indigenous (native) people were forced to work to pay off petty debts. The system was abolished in Mexico in 1917.
Peonage existed in the United States, particularly in what are now the states of Arizona and New Mexico, a short time after slavery was abolished. Black people were arrested on false charges and fined. If they were not able to pay the fine, they were given to the highest bidder to work without wages for a period of time. At the end of this period, they could be arrested again and forced into service. In 1911, the Supreme Court of the United States declared all forms of peonage to be unconstitutional.