Transatlantic Trade (Slavery, Williams Thesis And Debate On SNP) Flashcards
Population of colonial America in 18C
and how this affected trade in Britain + which regions grew faster
What % of exports went?
275k to 5.3m (20x) , black population 4x in BWI
Trade shifted to American colonies owned by Britain; industrial regions in Britain exporting to America grew the fastest e.g Birmingham (over 50% exports went to US)
Compositions of 18C trade (Before 18C, 19C)
Before 18C-70% manufactures were wool
19C- reduced to <50% exports (diversification to manufacturing)
Pattern of UK 18C trade: trends of largest export partners (before 18C, during, and after)
Before 18C: 85% went to Europe
18C: 50% American (Americanisation of trade)
After 1780: exports shifted to Australia, Latin America and Asia
(Basically EU, to US, to global)
Which countries saw the greatest growth and why?
Nations with access to Atlantic Ocean saw the biggest growth (the ones directly involved in slave trade and colonialism)
(Remember called transATLANTIC for a reason)
Atlantic REAL profits overtime
before 1575 to 1751-1800
£40k per year before 1575
£5m per year 1751-1800
What was transatlantic trade made possible by?
And highlight what was traded between them.
Triangular pattern of trade
USA, Britain, and slave coasts in Africa.
Britain exports manufactured goods to USA.
USA export fish, wood and naval products to Britain.
USA export rum to slave coasts
Britain export EU products to slave coasts
Slave coasts export slaves
How did slavery impact EU growth, who’s theory and evidence?
Williams thesis
High profits as pay workers nothing for their MPL
Evidence: Fogel & Engerman - linked success of plantation to efficiency in slavery
Why might slave trade not be not profitable? (2)
Contrasting Williams thesis + Fogel & Engerman)
Profit depended on actual sugar and cotton prices, supply of slaves, successful voyages etc.
(So just because slaves are profitable as not paid for MPL, depends on other factors to actually display growth)
The Williams thesis
Eval:
Profits from slave trade was main stream of capital accumulation, funding the Industrial Revolution.
(Slave trade SNP enabled plantation owners to consume EU manufactures, financing the IR)
Eval: this was consumption not investment (so not K)
3 Application to show importance of slave trade in Britain:
How many London investors engaged in slave market?
What % did slave economy account for in Bristol 18C?
What was the average ROI for slave voyages?
Over 1/3
40% of Bristols income in 18C
Average ROI- over 30%, Inikori estimates return closer to 50%
Critics of supernormal profits (4)
Limited sample- those returns of near 50% were only based on 24 voyages in Inikori sample. Wider studies show high variation:18/67 voyages made a loss.
Ignored risks-triangular trade was uncertain e.g loss of ships, reliance on harvests etc.
Cost of voyages ignored e.g Jamaica 1000 miles further than Barbados
Modern studies show profit rates found to be 7-8%, normal firm profits were similar at 8-10%! So transatlantic trade that important?
Engerman’s analysis (Complied with Williams Thesis)
- And what did the counterfactual show
Argued the idea of slave owners contributing to consumption not investment.
Supply of savings-perfectly inelastic (unresponsive to change in interest) , so profits were invested not consumed.
Counter-factual analysis shows profits accounted for 0.54% of British national income in 1770, but worth 8% of investment.
Why did other EU countries not experience sustained growth? (4)
Timing- slave trade peaked 1770
Abolition of slavery after loss of American colonies
Britain had defeated rival powers and largely controlled shipping
English had the Glorious revolution (fiscal-military state- used state capacity to fund navy and increase trade opportunities)
