The economics of the cotton trade Cotton Kingdom Day 2 The economics of the cotton trade

Agenda March 29, 2017 Do Now: your favorite clothing line decided to have all the cloth for its clothes produced in a location that permitted slavery. Your friends and family encourage you to stop buying clothes from this brand to protest the use of slave labor. Would you be willing to make this sacrifice? Complete Perspectives graphic organizer in groups. Complete writing prompt. HW: E.Q. Sheet due April 11, 2017. Test: April 11th. 2017

Key teams for activity Supply-Refers to the number of goods available for sale in the market. Demand -Refers to how much a consumer is willing to spend to purchase something. Consumer-Refers to someone who is buying a product. Producer -Refers to someone who is making or creating a product.

Understanding Connections If the supply is high, what happens to demand? Demand drops. How does low demand affect price? Price drops. How does high supply/low demand affect the consumer? He thinks it is great; there are plenty of cheap goods. How does high supply/low demand affect the producer? She does not like it; she is forced to lower her prices to meet consumer demand.

Understanding Connections If the supply is low, what happens to demand? Demand rises. How does high demand affect price? Prices rise. How does low supply/high demand affect the consumer? He does not like it; he is forced to pay more for each good. How does low supply/high demand affect the producer? She loves it; she can charge higher prices for her goods and make more money.

Step one: Complete Perspectives activity Mr. B will put you in groups of five. Each group has a Southern plantation owner, Southern small farmer, Northern factory owner and a Northern factory worker. In groups complete your perspectives worksheet in your roles. Consider what would work best for your livelyhood and discuss it with your team.

Step 2: Meet with others. All Northern factory owners come to the front right. All Northern factory workers back right. All slaves in the Middle. Front left small farmers of the south. Back left Plantation owners. Compare notes.

Scenario #1 There is an international surplus of cotton. The United States, India, and Egypt produce more than their usual supply of cotton. With more cotton to sell, the price of raw cotton drops. Southern Plantation Owner Small Farm Owner in the South Southern Slave Northern Manufacturer Northern Factory Worker

Scenario #2 There is an international surplus of manufactured goods. American and English manufacturers produce more thread, fabric, and clothes than usual. With more manufactured goods to sell, the price of fabric drops. Southern Plantation Owner Small Farm Owner in the South Southern Slave Northern Manufacturer Northern Factory Worker

Scenario #3 A drought occurred this year, and cotton did not grow well. There is not enough cotton to meet manufacturers’ demands. The price of available cotton goes up. Southern Plantation Owner Small Farm Owner in the South Southern Slave Northern Manufacturer Northern Factory Worker

Scenario #4 The shortage of cotton forces manufacturers to pay more for cotton. Manufacturers make up the financial loss by charging higher prices for thread, fabric, and clothes. Southern Plantation Owner Small Farm Owner in the South Southern Slave Northern Manufacturer Northern Factory Worker

Scenario #5 This year, English manufacturers produce more thread, fabric, and clothes than American manufacturers. There are plenty of goods for consumers to purchase, but most of these goods are English-made. Fewer goods are American-made. Southern Plantation Owner Small Farm Owner in the South Southern Slave Northern Manufacturer Northern Factory Worker

Scenario #6 The U.S. government decides to protect American manufacturers from their English competitors and raise import taxes at all American ports. Import taxes are often called tariffs. The tariffs force the English to pay higher taxes to sell goods in America. In order to make up the financial loss, the English must charge higher prices for their goods. Now, thanks to the tariff, American and English manufacturers are charging about the same price (and a high price). Southern Plantation Owner Small Farm Owner in the South Southern Slave Northern Manufacturer Northern Factory Worker

Scenario #7 Consumers do not like tariffs. High tariffs force them to pay more for foreign goods. Consumers want to get rid of the tariff. Yet, the tariff was passed by the U.S. Congress. To get rid of it, consumers need more representatives in Congress to vote to get rid of the tariff. So, consumers decide to make a new state (which brings in several more representatives and two senators). Southern Plantation Owner Small Farm Owner in the South Southern Slave Northern Manufacturer Northern Factory Worker

Scenario #8 Producers are upset that the tariff might be voted down. They need to stop consumers from gaining access a new state’s land. Besides, the consumers might expand the institution of slavery into this new state. Slavery is not only morally wrong, but it destroys a worker’s initiative because it does not bring any financial profit to the worker. . Southern Plantation Owner Small Farm Owner in the South Southern Slave Northern Manufacturer Northern Factory Worker

Scenario #9 A Congressman from Kentucky named Henry Clay, who is personally a consumer(makes cotton) but publicly a producer(buys cotton products), says why don’t the producers settle their own state (Maine) and keep the tariff and the consumers obtain their own state (Missouri) and keep their slaves? Southern Plantation Owner Small Farm Owner in the South Southern Slave Northern Manufacturer Northern Factory Worker

Exit Ticket Based on the information gathered over the past two days, do you believe that the South needed to modernize its economy to compete with the North’s economic power or not? Defend your position with information gathered in perspectives activity and key steps in the cotton cycle. One Paragraph 1) Claim (South needs to modernize or not). 2) Two pieces of evidence(scenario on the worksheet, segment of the cotton cycle, information from the Market Revolution notes) that support your view.