The Nature Of Native American Economies

Published Date: 02 Nov 2017

Nguyen Truong

EC 456

What was the nature of Native American economies prior to European colonization? How did the Native American impact colonial economies?

Before the European first arrived in America, the Native American economies did very well and the people were considered as high standard of living. In North American, the North West part was hunting and gathering predominant, in the South East part, agricultural was predominant.

Abandoned their pit houses dug in cliff for a long time to switch to rectangular rooms arranged in apartment-like structures, the Native American already have well planned villages with the use of canals, check-dams, and hill-side terracing to bring water. There were fair amount of agricultural, which helps the Native American settle and develop their villages life. Villages got bigger and more complex with the increase of population, which was estimated as high as 10 million pre-European arrivals. Beside agricultural, lumber, hunting and fishing played an important part. Some villages depended on cedar and salmon. Trading also happened between the villages in the area or in bigger territory by canoe. Overall, the Native American had a fairly high standard of living because they were tall (compare to the European by that time) and had a variety of diet, quality food. They also had a rich cultural which included many dances, ceremonies, or religious activities.

There are five ways the Native American affected the colonial economies:

First, trading was the main reason that some of the European countries such as French and Dutch came for. Fur trading with the Native American by that time was the high profit, later was cotton and tobacco.

Second, the Native American helped and taught the European their agricultural technique to grow corn, bean, squash, and tobacco. There was also the import of potato from the South America, which later became a good diet for the colonists.

Third, the war between the colonists versus Native American had a huge impact on the colonial economies, not only money, but also human lives. The French-Indian war cost Britain a lot, then Britain taxed their colonists as the result.

Fourth, Native American offered a good labor force for the colonists. Three main ways were from servant, "praying" villages, and slaves.

And finally, the use of "wampum" which is considered as money for trading making the trade so much easier for both sides.

What was the nature of the colonial labor force in the U.S, and what were the most important kinds of work arrangements?

During the time between 1650 until 1776, 90% of the labor force working on agricultural, the other 10% working as trading merchants, ship builders, artisans and other manufacturing in the urban area. There were three regionals with their own specialization: the New England area with farming, lumbering, fishing, spinning, weaving and producing maple syrup; the Middle Colonies with wheat, flour, cattle, sheep, shoes making, and glass making; and the South with rice, indigo, tobacco, and cotton.

Literacy among the population was about 41% in 1680, then 69% in 1770

The labor forces also divided into five groups:

The free populations were those who came on their own funds, able to purchase land from the government, therefore, free from any kind of service contract.

The Indentured Servants were those who came with contract to do certain work for a term of years (usually four and seven), as the cost of passage, payment, food, or maybe training. The price depended upon sex, age, skills of the worker. Ex: an illiterate male, 20 years old with no occupation would have the contract about 56 months, after that, he would be in free population. This is the most important kind of work arrangement because this form of contract could be considered as a good deal for the benefit it had. The marker demand for indentured servants increased dramatically. There were about half or three-quarter of white colonists population came this way.

Redemptioners were those who allowed paying the passage after arrival, but have to leave one or more of their children into indenture to raise the money. Usually were Germans who came with their family.

Prisoners who convicted in England were also sent to America in exchange for their lives.

And finally, slaves were brought from Africa. They were not protected as British subject, had no human right and belong to their owner.

Were American colonists economically exploited by the British prior to the American Revolution?

The Colonies economy before American Revolution basically went very well with the income increased, which listed them among the riches nations in the world. Also they had good standard living; the average colonial men even taller than the British men 5’8" to 5’6". However, there are some strict rules, laws, and acts, which were controlled by the British to make sure America, was a colony of British: foreigners exclude from trading with colonies (1630), all the import and export such as tobacco, sugar, indigo, cotton, or naval must go through Britain, or go to Britain only. As the result, this increased the dependence of colonies on Britain, and the prices of import and export were higher.

In the trade-off, colonies had some benefits such as the protections against non-British countries, or the Natives American, also the protection for British market, ship-building will be exclusive for the colonies with their colonial crew, and the support of British government in funding indigo, tar, pitch, and lumber.

However, after the French and Indian war, Britain was in a huge public debt, so they taxed the colonies: Sugar Acts (1764), Stamp and Quartering Acts (1765), Townshend Acts (1767), and finally Tea Acts (1773). These taxes brought up the thought of unfair treatment from the British, the thought of independence, and as the result, the lead to American Revolution.

Overall, independence from Britain brought more benefits for the colonies in freedom of trade, human rights, as well as increased the colonies economies. But by the time before the American Revolution, if include all these "unfair" taxes, the colonies still had a good economy with huge amounts of surplus. Robert P. Thomas estimate only $1.24 per capita was considered as burden, which is only about 2% income per person in the colonies. This tax burden was so much lower compare to Britain itself (Colonies/Britain: 2/100). The American colonists didn’t economically exploited by the British prior to the American Revolution.