World Economy – Transatlantic Trade and Slavery
Transatlantic Exports and Growth
● Population of colonial America multiplied 20-fold in 18th C.
● Incomes remained high due to land abundance 0.3-0.6% income growth like Britain.
● Over time, trade shifted from Europe to American colonies. Industrial regions in UK making
export oriented manufactures for American markets grew fastest.
Composition and pattern of 18th C trade
● Before 18th C exports almost exclusively woollen textiles. 70% of exports manufactured are
woollens.
● During 18th C exports diversified into other manufacturing areas. Textiles were only less than
50% in early 18th C
● After 18th C exports focused in new industries – by 1801 cotton and iron exports made up
50% of manufactured exports and 90% of exports were manufactures.
● During 18th C exports shifted to transatlantic trade. After 1780’s exports shifted to Asia,
Australasia and Latin America.
How profitable was slavery?
It was profitable It wasn’t profitable
Williams Thesis – linked British success to Engerman – macro accounting to disprove
profits from slave trade generally significance of slave trade
Fogel and Engerman – linked success of David and Temin – Argued against efficiency of
plantation owners in US to slavery efficiency Southern agriculture in USA being due to
slavery.
Williams Thesis
Williams (1944) – Profits from slave trade financed IR and helped accumulation of capital
● Most influential and cohesive attempt to link slave trade and European growth.
● Slave trade and sale of sugar provided demand for industrial production – lots of profits in
transporting, clothing, feeding slaves, banking etc
● Slave trade generated supernormal profits for plantation owners who consumed European
manufactures.
● Europe generated some investment and demand, but slave trade offered spark during key
phase.
How important was the slave trade for Britain?
Case for supernormal profits?
● Case studies support argument that slavery was highly profitable. Richardson claimed slave
economy accounted for 40% of Bristol’s income in 18th C.
● Contemporaries giving evidence to parliamentary committees in 1788 attested return from
slave trade exceeded returns for UK.
Critics of supernormal profits
● Studies supporting s.normal profits based on limited sample.
● Time factor and different costs of voyages not considered – Jamaica 1000 miles farther than
Barbados.
Transatlantic Exports and Growth
● Population of colonial America multiplied 20-fold in 18th C.
● Incomes remained high due to land abundance 0.3-0.6% income growth like Britain.
● Over time, trade shifted from Europe to American colonies. Industrial regions in UK making
export oriented manufactures for American markets grew fastest.
Composition and pattern of 18th C trade
● Before 18th C exports almost exclusively woollen textiles. 70% of exports manufactured are
woollens.
● During 18th C exports diversified into other manufacturing areas. Textiles were only less than
50% in early 18th C
● After 18th C exports focused in new industries – by 1801 cotton and iron exports made up
50% of manufactured exports and 90% of exports were manufactures.
● During 18th C exports shifted to transatlantic trade. After 1780’s exports shifted to Asia,
Australasia and Latin America.
How profitable was slavery?
It was profitable It wasn’t profitable
Williams Thesis – linked British success to Engerman – macro accounting to disprove
profits from slave trade generally significance of slave trade
Fogel and Engerman – linked success of David and Temin – Argued against efficiency of
plantation owners in US to slavery efficiency Southern agriculture in USA being due to
slavery.
Williams Thesis
Williams (1944) – Profits from slave trade financed IR and helped accumulation of capital
● Most influential and cohesive attempt to link slave trade and European growth.
● Slave trade and sale of sugar provided demand for industrial production – lots of profits in
transporting, clothing, feeding slaves, banking etc
● Slave trade generated supernormal profits for plantation owners who consumed European
manufactures.
● Europe generated some investment and demand, but slave trade offered spark during key
phase.
How important was the slave trade for Britain?
Case for supernormal profits?
● Case studies support argument that slavery was highly profitable. Richardson claimed slave
economy accounted for 40% of Bristol’s income in 18th C.
● Contemporaries giving evidence to parliamentary committees in 1788 attested return from
slave trade exceeded returns for UK.
Critics of supernormal profits
● Studies supporting s.normal profits based on limited sample.
● Time factor and different costs of voyages not considered – Jamaica 1000 miles farther than
Barbados.
