Why are the north and south so different in their economic practices
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Why are the North and South so different in their economic practices? - PowerPoint PPT Presentation

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Why are the North and South so different in their economic practices?. When did the divergence begin?. mid 17 th century- Southern economic development Establishment of racial slavery GREAT STAPLE CROP in tobacco and other crops that were important to England and Europe.

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When did the divergence begin
When did the divergence begin? practices?

  • mid 17th century- Southern economic development

    • Establishment of racial slavery

    • GREAT STAPLE CROPin tobacco and other crops that were important to England and Europe.

    • Rise of a growing plantation sector

Why are the north and south so different
Why are the North and South so different? practices?

  • Differences:

    • Climate

    • Profit possibilities

    • Land/ Natural Resources

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

How did this influence the colonists
How did this influence the colonists? practices?

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

    • Example: South

      • Climate: Warm- Natural Resources: good for agriculture.

      • 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 the plantation.

Southern colonies
Southern practices?Colonies

Economic path of the south
Economic Path of the South practices?

  • Tobacco and Rice

    • quickly found to be staple, money making crops

    • Led to the dependency on slavery

      • Replaced free and indentured labor because they were seen as being too expensive

  • Plantations went up around the South beginning in the 1620s and dominated the South by the 1770s

Who owned the plantations
Who owned the plantations? practices?

  • A small group of white planters and merchants

    • Shaped the region’s economic development

      • Wealthy, slave-based economy

      • Dependent on agricultural staples for export to northern Europe

      • 40% of the Southern population were slaves

Distribution of wealth and southern strategy
Distribution of Wealth and Southern “strategy” practices?

  • Southern colonies had extreme inequalities in wealth

  • Strategy: Benefit a few by exporting staple crops produced by slaves.

    • Owners become wealthy because they export (sell) MUCH more than their labor expenses.

Outcomes practices?

  • Weak institutional development and slow growth of:

    • Transportation Networks

    • Urban systems

    • Educational organization

    • Religious organization

The northern economic path
The Northern Economic Path practices?

  • “Lacked economic definition”

    • Did not have exports of high importance for England


Northern strategy
Northern Strategy practices?

  • Economic Improvisation

    • A strategy based on flexibility and creativity

  • Flexible business organization

  • Quick decision making and constant change

  • Commercial and shipping services

  • Local AND regional trade

Outcome practices?

  • Slow growth as compared to the South

  • Eventually became very wealthy

  • Made way for future industrialization

  • BUT:

    • Some northerners were also trying to make money quickly by developing land, stealing, or trading slaves.

New england
New England practices?

New england1
New England practices?

  • Overcame limitations in natural resources

  • Combined subsistence activities with local, regional, and international trade

    • Led to strong export earnings and good flow of imports

      • Steady economic growth

      • Higher living standards for a large portion of the population

Middle colonies
Middle Colonies practices?

Middle colonies1
Middle Colonies practices?

  • Most ethnically diverse region


  • Agriculture, manufacturing, and trade all worked and played off of each other

  • Fertile valleys and great harbors

  • Thousands of agricultural, manufacturing and commercial activities were pursued

Outcome practices?

  • Family, wage, and indentured labor were used

    • Slave labor was used as well, but not to the extent of the South

  • High domestic demand for wheat

  • Good opportunities for all economic activities, including craft and artisanal jobs.

  • Wealth was distributed more evenly than in the other 2 regions

Philadelphia and new york
Philadelphia and New York practices?

  • Excellent harbors

  • Great trading posts

  • Generated more jobs for the Middle Colonies

    • Trading of goods AND ideas/information

    • Increased productivity

    • Increased wealth

North south
North South practices?

  • 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
Led to… practices?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