Economies In HistoryChapter 2

What is the purpose of an economic system?

To answer these questions:• What goods and services do people NEED and

WANT• How can we PRODUCE these goods and

services• How will we DISTRIBUTE them?

Needs and Wants

• Econmies attempt to satisfy our NEEDS AND WANTS.

• Needs are things that people need to survive

• Wants are things that people want but isn’t vital to survival.

Needs and Wants

Production

• Economies hope to make the products and services different cultures need and want.

• Production is the process that people do to ensure they have taken care of their needs.

Distribution

• The goods and services that have been produced will then be distributed.

• Different cultures have different ways for people to get the things the economy produces.

First Nation’s Economy 1800’s

• First nations have lived in North America for as long as anyone can remember in all the stories passed on by elders.

• Each society has its own political, economic, and cultural systems.

First Nation’s Economy: Needs and Wants

• Depended on land and natural resources for survival.

• Economy based on the resources that were available.

• Example: 26-27 Different Native groups utilizing

different resources based on the area they frequent.

First Nation’s Economy: Production

• Goods were constructed by hand.

• Where a limited amount of goods were made people began to become quite skillful at using the resources in the most efficient way.

First Nation’s Economy: Production

• The native groups within themselves would work together to produce everything the family needed.

• Believed people and nature are not separate, but part of the system including land, waters, plants and animals.

First Nation’s Economy: Distribution

• Groups shared everything equally.

• Some first nations had a very clear idea about territory boundaries, others moved freely over the same areas.

First Nation’s Economy: Distribution

• Some trade networks were in place between some groups of aboriginal people.

• There was no tradition of private ownership. You could not own the land.

The Newcomers

Europeans began to settle inNorth America in the 1500’s

Why did the come here?• Wanted more land• Spread culture/religion• Find new economic

opportunities• Looking for resources to sell to

Europe

The Newcomers

Production:

• Everything was made by hand

Examples:• Blacksmiths made metal tools• Coopers made barrels• Cobblers made shoes• Women spun sheep’s fleece for

wool

The Newcomers

Distribution:

• Europeans believed in owning Private Property

• The main goal was to work to benefit your own family

• Goods were sold in the market, and if you wanted something- You paid for it!

The Newcomers

3 KEY RESOURCES:

• Fish- cod was plentiful, and a key part of European diet (Why??)

• Furs- Beaver pelts in demand for hats

• Timber- why??

The Impact of Contact

Contact= the time when Europeans first came to North America

**Caused serious problems for the First Nations and Inuit

**What coast did contact first happen on?

The Atlantic Coast

The Impact of Contact

Early settlers did not know how to survive in this new world

They had to learn by, and trade with, the Aboriginal People

The Impact of Contact

Europeans traded:• Metal knives• Pots• Guns

Europeans wanted:• Food• Furs

The Fur Trade

- The Fur trade began due to the European newcomers due to the popularity of furs in Europe.

- The First Nations people were interested in trade goods such as metal knives and pots.

- They began due to Europeans initiating trade.

Treaties

• Treaty: An agreement between two or more nations.

• Great Britain and First Nations entered into a number of treaties between 1717 and 1779.

Treaties: Britain and The First Nations

• Q: Why did Great Britain believe they would benefit from these treaties?

• A: Great Britain believed that treaties would help make sure that First Nations sided with Britian in any conflicts against France.

Treaties: Britain and The First Nations

• Q: Why did First Nations believe they would benefit from these treaties?

• A: First Nations believed that making treaties with Great Britain would ensure peace and allow them to continue their way of life for future generations.

The Fur Trade and It’s Consequences

• First Nations people spent more time hunting for furs and less time hunting and fishing for their own needs.

• This meant they had to use more European goods like flour and cloth to meet their needs.

The Fur Trade and It’s Consequences

• It was a cycle where they hunted for furs so they could get trade goods, and they needed trade goods because they hunted furs!

• This system was not self sufficient!

The Fur Trade and It’s Consequences

• Eventually the animal population would dwindle.

• Once an area became low on furs in an area they would just move.

• Once the Europeans moved first nations couldn’t just return to their traditional life.

Effects of European Settlement

• First Nations were used to sharing the land. However the idea of private ownership was a new concept for them.

• It didn’t mix well with traditional economies. • As more places were fenced and obtained by Europeans, more

hunting grounds were being taken away

Effects of European Settlement

• This was not what First Nations expected when they signed these treaties.

• Europeans also believed their lifestyles were superior to the First nations.

• They believed First Nations people would eventually die out, adapt, or go somewhere else.