1. DID SLAVERY MAKE ECONOMIC SENSE?
Global Economics presentation
Ieva Naujokaitė
Ingrida Marčiulaitytė
Edvinas Vyšniauskas
Kaunas
2013

2. WHAT IS SLAVERY?
• Slavery in the North
America started in
1619.
• People are treated as
property
• 4 types of slavery:
chattel (traditional),
bonded labor, forced
labor, forced marriage.
2

3. SLAVERY – PROFITABLE INVESTMENT
• Benefits for free
• Productivity
• Slavery ROI vs. railroad bonds
• Source of wealth
3

4. EFFECT OF SLAVERY ON WIDER ECONOMIC
DEVELOPMENT
• Impossible scientific agriculture
• Reduced development of Southern capitalism
• Difficulties on trading networks
4

5. POSITIVE AND NEGATIVE EFFECTS OF
DIVERSIFICATION
• What is diversification?
• Diversification was mainly found on Southern states
• Diversification helped slaveowners to pay their fixed
costs...
• ... but it caused a negative effect on trades and
development of the Southern cities
• There was no benefits of diversification for the
Southern states as a whole
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6. SLAVERY‘S EFFECTS ON ECONOMIES OUTSIDE
AMERICA
• Provincial banking emerged in 18th century
• Slavery encouraged global commodity circulation
• Human beings treated like a capital equipment
• Slaves themselves had a terrible economic cost
• Opportunity cost to the broader economies
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7. CONCLUSIONS
• Individual business vs. wider economic
development
• Encouraged global commodity circulation
• Because of diversification, economic growth
in the Southern states was suspended, while
North states became more developed
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8. THANK YOU!

9. REFERENCES
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•
•
•
•
•
•
„The Economist“ 2013 09 27 „Did slavery make economic sense?“
„The start of slavery in North America“
http://afroamhistory.about.com/od/slavery/a/The-Start-Of-Slavery-In-North-Ame
„Economics of Slavery“ http://faculty.weber.edu/kmackay/economics
%20of%20slavery.asp
„How slavery helped build a world economy“
http://news.nationalgeographic.com/news/2003/01/0131_030203_jubilee
2.html
„Slavery in America“ http://www.history.com/topics/slavery
„Agricultural diversification“ http://missmango5.wikispaces.com/2b.
+Agricultural+diversification
„The South‘s Economy“
http://www.digitalhistory.uh.edu/disp_textbook.cfm?smtID=2&psid=3558
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10. REFERENCES
•
•
•
•
•
•
•
„The Economist“ 2013 09 27 „Did slavery make economic sense?“
„The start of slavery in North America“
http://afroamhistory.about.com/od/slavery/a/The-Start-Of-Slavery-In-North-Ame
„Economics of Slavery“ http://faculty.weber.edu/kmackay/economics
%20of%20slavery.asp
„How slavery helped build a world economy“
http://news.nationalgeographic.com/news/2003/01/0131_030203_jubilee
2.html
„Slavery in America“ http://www.history.com/topics/slavery
„Agricultural diversification“ http://missmango5.wikispaces.com/2b.
+Agricultural+diversification
„The South‘s Economy“
http://www.digitalhistory.uh.edu/disp_textbook.cfm?smtID=2&psid=3558
9