UVA: ECON 2060: midterm 1

Malthus

- population is exponential

- resources is linear

- therefore population will outrun resources

(passion between the sexes is what is going to stop society from flourishing)

- NOT TRUE FOR NA because resources were soooo abundant

probate inventories

- the possessions someone has when they die

- Alice Hanson Jones: found that PI were higher in NA than in Britain

Ben Franklin

"Observations Concerning the Increase of Mankind":

- high wages:

- people can afford to marry younger

- more willing to have kids

+

- land is cheap (and abundant)

- (but labor is expensive) people "make" their own farm hands

pull factors

push factors

what is drawing someone to the new world (ex: new opportunity)

what is pushing someone out of their current home (ex:religious intolerance)

Ravenstein's Laws

the types of people to migrate:

- young

- male

- single

- skilled workers

- literate

- younger sons of land owning families

chain migration

people are influenced by people who they know who have migrated before them (family, friends, neighbors,etc...)

learning-by-doing

`adaptation

Redemptioners

people who migrated to the new world (on credit to the captain) and hoped they could find someone over there to pay for them

indectured servants

people who would have someone pay for their passage to the new world in exchange for working for them for a set amount of time

1.) paid passage

2.) freedom dues

3.) learn skills

- 1/3-2/3 of people who came to VA were indentured servants

- 1680-1774: transition for indentured servants to slaves

Raymond Goldsmith

economic growth:

- intensive: input is the same but output is more because of increased efficiency

- extensive: more input so more output

Lewis

Labor Surplus Model:

- underemployment NOT unemployment

- doesn't work for NA because there is a lot of work to do (farming + cutting down trees)

Keynes

Adam Smith

Smithian Model:

extensive growth creates productivity (because more specialization can occur)

Staple Model

- specialization by crop

- tobacco

1.) backward linkages

ex: seeds

2.) forward linkages

ex: processing/shipping

3.) final demand linkages

ex: what do farmers do with the money they made from tobacco

absolute advantage

south has absolute advantage over tobacco which is why they don't benefit from forward linkages

tobacco warehouse receipts

- become a form of currency

- farmers can pay off debts w/them

- could pay your taxes

- problem: divisible

specie

gold and silver coinage

paper money

colonists claimed they needed it to finance their domestic transactions

Adam Smith

they have paper money because they want to live beyond their needs

colonial currency act 1751

cannot be used for private transactions

beggar thy neighbor

- the best way to better your economy is to reduce your rival's

- ex: Navigation acts (pushing the Dutch out of trade)

mercantilism

gaining power for the state through trade/money

John Locke

"riches don't come from having more gold and silver but having proportionally more than your neighbor"

Colbert

commerice is fixed

Navigation Acts

1.) colonial goods can only be carried on British ships

2.) enumerated goods: all staple goods coming from the colonies must go through Britain

3.) Staple Act: the reverse of enumerated goods

Harper

- cost benefit analysis of the Old Colonial System

- import/export burden

- inaccurate because his model takes the entrepôt out completely

entrepôt

- a central place where goods are imported, collected and exported

- Amsterdam then switched to London due to the Navigation Acts

New England Colonies

New Hampshire

Massachusetts

Rhode Island

Connecticut

Middle Colonies (mid-atlantic)

Pennsylvania

New York

New Jersey

Delaware

Southern Colonies

Maryland

Virginia

North Carolina

South Carolina

Georgia

Molasses Act

- 1733

- trying to raise revenue, not change behavior

- colonies can only import molasses from British West Indies

- unsuccessful

Sugar Act

- 1764

- can import molasses from anywhere but now its taxed

- tax too high, didn't bring in rev

- lowered the tax, brought in a small amount of rev

Stamp Act

- 1765

- internal tax (everything else had been external) BAD

- no taxation w/out representation

- merchants pressure Parliament to repeal because their goods were being boycotted

- stamp act repealed

Townshend Duties

- 1767

- paint leds, glass, tea

- Colonists boycotted British goods and British exports went down 2/3 (1 mil pounds)

- British backed down again ACCEPT tea (sending a message)

Adam Smith (WON)

- free trade

- individualism

1.) self love vs altruism

2.) desire to be free vs sense of propriety

3.) habit of labor vs exchange

- self interest > benevolence

- let the market decide not the gov't

- nature is good

Hobes

- nature is nasty brutish and short

- complete opposite of Smith

nico

shut:

- (the ****) up