What were the effects on the American Colonies because of their economies?

What were their similarities?

Had ample natural resources

English colonies Settled for similar

reasons Economic Religious

What were their differences?

Climate Land/ Natural Resources Businesses (specialization) People

How did the North and South become different?

The North and South remained distinctly different because once the first decision was made, all future decisions are limited by those previously made.

Behavior of the people changed due to the way the colony or region responded to the economic market.

Example: Southern Colonies

The South had little experimentation to do before they realized that the land was an agricultural gold mine

South became organized economically, socially, politically and culturally around agriculture and the plantation.

Climate: WarmNatural Resources: Fertile soil

Effects of Economic DecisionsSouth Tobacco and Rice (Staple or Cash Crops)

quickly found to be staple, money making crops Led to the dependency on slavery

Plantations 1620s Dominated the South by the 1770s

Slave-based economy (40% population) A small group of white planters and merchants Extreme inequalities in wealth Weak and slow growth

Transportation Networks Educational organization Religious organization

Effects of Economic DecisionsMiddle Most ethnically and economically diverse region Excellent harbors (NY & PA), fertile valleys, and trading

posts Agriculture, manufacturing, and trade all worked and

played off of each other Thousands of agricultural, manufacturing and commercial

activities All types economic activities, including craft and artisanal

jobs. NO GREAT STAPLE MARKET High domestic demand for wheat

Family farming Paid and indentured labor were used Little slave labor was used as well, but not to the extent of

the South Wealth

Distributed more evenly More jobs Exchange of materials and ideas

Effects of Economic DecisionsNew England

Didn’t have one staple agricultural item Did not have exports of high importance for

England Overcame limitations in natural resources Improvised

A strategy based on flexibility and creativity (used what they had) Combined subsistence activities with local, regional, and

international trade Local and regional trade Commercial and shipping services

Steady economic growth but grew wealthy Set up industry for the future Higher living standards for a large portion of the

population Little need for slavery

North South

Couldn’t produce valuable plantation staples

Limited value/use of slave labor

Economic balance and diversity

Constant innovation/change

Creative business practices

Early organization around plantation staples

High use of slave labor

No need for creativity due to the large profits that came from plantation agriculture

Led to…North South

Local and regional trade

Relatively equal distribution of wealth

More established social, educational, political and cultural institutions These were made

available to a wide variety of people

Focused on exports Very unequal

distribution of wealth Economic and social

inequalities Inflexible strategies Unskilled slave labor Low-tech Unable to develop

with the North