How Successful Were Economic Transformations In America?

By: Justin Mahmud

 Throughout the course of history, nations have

competed with one another in the race for economic

supremacy.  Economy is the system in which a nation or

country handles currency and international affairs

involving goods or money, however systems of economy

have not always been as developed and advanced as they

are today. ( Forms of economic transformations have

taken place first).  Such transformations are

necessary in nations who are perceived as powerhouses

in the wild in terms of economy.  A perfect example of

this is our very own nation, the United States.  The

United States has had its’ share of economic

transformations which have helped boost its economic

position amongst other nations.  There have been three

key transformations in America which include trade

(specifically trade for slaves), industrialization and

laissez faire capitalism. All of these have

contributed to the undisputed success of the American

economy. America’s utilization of these economic

transformations have laid the most successful

foundation for nations to follow.

               One of the most controversial but successful economic

transformation in America was the development of the

slave trade involving America with other nations.  The

first real major slave trade was the transatlantic and

triangle trade.  This transatlantic slave trade,

lasting from 1450 to around 1850,   held an incredible

effect on nations such as America, Europe and Africa. 

Trade has always held significant economic meaning to

nations because of the increase of trade brings goods

and money but no trade held more significance to

American economy as the transatlantic slave trade

(triangle trade) did.  This trade involved

manufactured goods from industry, raw materials

(including sugar, cotton, tobacco), and most

importantly, slaves.  Slavery held the key to tone of

the most significant economic transformations.  In

order to acquire these slaves, America was dependent

upon Europe because European traders expand

manufactured goods to Africa in exchange for slaves in

which they traded to America for some of its’ raw

materials.   The amounts of slaves being transported

is staggering(during 1440-1640); nations such as

Portugal and Britain are accountable for having

shipping out over seven million slaves throughout the

transatlantic slave trade.  The region in which these

slaves were being transported from Africa into America

was known as the middle passage.  The slave trade’s

economic impact on America came mostly in the south. 

Southern United States was based on agriculture which

includes farm work which requires workers to proved

labor.  Slavery was the answer to this labor and it

was free. With the addition of slaves there would be a

competition of economic growth within the nation

between the north and the south. There will also be

the addition of entrepreneur-like ideas such as the

profits to cheap or free labor ratio.This allowed

southern United States to prosper economically.  With

the progress of agriculture came economic growth with

more goods for trade and there was an increase of

production (food).  With the constant importation of

slaves into America provided a constant supply of free

labor workers.  It wasn’t until 1807 when Britain

banned the slave trade; 1865 when the United States

abolished slavery and until 1888 when Brazil outlawed

slave trade across the entire American continent that

the slave trade finally died out.  

               Another key economic transformation that took place

in America was industrialization.  The key for

industrialization to become a success in America was

to understand its’ connection to the country’s already

strong agricultural system.  The utilization of

industry for agriculture proved to be successful.  

According to Thomas Weiss, “United States labor force

estimates and economic growth,” had shown that there

was a significant increase in the number of farm

laborers throughout New England, Massachusetts,

Connecticut, Mid-Atlantic, New York, Pennsylvania and

east which was mainly due to the opening of new

industries such as shoe industries and cotton

textiles.  Industrialization was also successful

because although these were many areas for good

farming and agriculture, it does not mean that

farmland is available everywhere.  So in the areas in

which there was no farmland, cotton textiles were

developed; it was later spread to areas which were

prosperous in agriculture.  Cotton textiles involved

the production of cotton (clothing) through

productions of spinning machines which was also a form

of industry.  Clothing was obviously something that

directly brought economic growth through sales and

trade.  This industry was successful because the idea

of profit became key due to the cost of production was

better than their selling price.  The sectionalism of

America had also helped the growth of industry because

the east was so dominant with industry in caused areas

such as the Midwest to try to compete with in turn

creates more industry which equals economic growth. 

This ,however, was not possible until 1840-1860 when

transportation and technology developed which lowered

distribution costs.  Industrialization was a key

economic transformation because it is able to provide

new jobs for our society and allows the United States

to trade with other nations. 

               Another significant economic transformation was the

development of the laissez faire capitalism created by

Adam Smith.  It held strong economic importance, as

evidence it is still the system in place and in use

today.  Laissez Faire was first introduced because

America and other nations were trying to take power

away from controlling rulers or overly powered

governments.  Laissez Faire is a system in which

governments can have no say or involvement with

regulations of private or independent businesses. 

This was key to economic growth because now business

owners were able to manage their businesses in their

own way, one example is they would no longer have to

accept government issued prices, they can now set

prices as they see fit. (more economic freedom).  Some

may argue that this economic equality has potential

for success but also has the same potential for

failure.  Although this may have some truth, Laissez

Faire was a necessary economic transformation for our

economy and democracy. It was necessary because

America has called itself the land of the free while

the free while they emulate the economic systems of

other nations, this form of capitalism will give

America a trait of its own identity.

               Economic transformations such as Laissez Faire

capitalism, industrialization, and slave trade have

all shaped our economy to this date.  Its’ success in

undisputed; the United States has become an economical

powerhouse and a center of trade.  It has laid a path

which is followed and imitated by many other nations. 

Laissez Faire has helped us maintain a balance between

government power and economic power of the individual.

 The slave trade has helped progress economic

development in south United States.  The

industrialization era had helped spread industry to

all ports of the United States (not only the north) to

an industrial power capable of trading with a variety

of manufactured goods.  This all shows the strength as

well as the success of the economic transformations in

the United States. 

(end notes)

   Donald R. Wright , “Journal of American Ethnic

History,” Volume 20, Issue 1 , Fall 2000

  Paul E. Lovejoy, “Transformations in Slavery,”

Cambridge University Press, 2000, ISBN

  Thomas Weiss, “US Labor Force Estimates and Economic

Growth,”1800-1860, “ American Economic

Growth and Standards of living Before the Civil War,

edited by Robert E.Gallagan and John Joseph Wallis

(Chicago IL University of Chicago Press,1992”