Elder, 69, appeared on The Candace Owens Show, adjacent to the show's namesake host, in July to present his opinion on race relations in America. The topic of reparations was talked about after Owens abolished the slave trade, beginning a dialogue about the logic behind backing the compensation of former slave owners.
"When people talk about reparations, do they really want to have that conversation? Like it or not, slavery was legal," Elder said.
"Their legal property was taken away from them after the Civil War, so you could make an argument that the people that are owed reparations are not only just Black people but also the people whose 'property' was taken away after the end of the Civil War."
Reparations are often addressed through the lens of allocating money and other resources to black communities - not slave owners - and have been backed by several lawmakers and support groups.
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Amid the interview, Elder claimed that slave owners lost a significant amount of money and resources after the Civil War and the passage of the 13th amendment in 1865 - which partially abolished slavery.
"You look at the amount of money adjusted for today's dollars, it's a great deal of money," he said. He noted that other nations, such as the United Kingdom, "compensated slave owners" with "substantial amounts of money' after they lost their 'legal property'.
"That's why there was no war in the U.K. - the slave owners got substantial amounts of money," he said. U.K. leaders provided former slavers £20million in compensation from the British Slave Compensation Commission after slavery was outlawed in the country in 1833, Yahoo News reported.
Elder also claimed that racism is not the greatest issue the black community undergoes but instead explained that not having a father in the home is far more damaging."A kid today is less likely to be born under a roof with a biological mother and biological father than a kid during slavery," he said.
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"In 1965, 25 percent of black kids were born outside of wedlock. Now that number is nearly 70 percent. You cannot blame that on slavery." He added: "Forget about Larry Elder. Obama said a kid who does not have a father in the house is five times more likely to be poor, nine times more likely to drop out of school and 20 times more likely to end up in jail. It is far and away the number problem."
Elder's interview with Owens is hot around social media as he campaigns to replace Gov. Gavin Newsom in California's recall election.