Chapter 2Economics in History
Throughout history, people have always had an economic system
The main purpose of an economic system is to answer 3 questions
What goods and services do people need and want?
How can we make these goods and services?
How will we distribute them?
The term commodities refers to the goods and services that are distributed in an economic system
These commodities are either shared, traded or bought and sold depending on the type of economy
An industrial economy is an economy which depends on manufacturing technologies to make the goods that they sell
The 1st industrial economies started during the industrial revolution in Europe in the late 1700's
Now most regions of the world use this type of economy
First Nations and Inuit Economies
Needs and Wants
These people had a traditional economy based on the natural resources available in that region
The three needs of a people, including aboriginals, are food, clothing and shelter
Inuit tupik – summer residence made of caribou skin that was easily transported
Their homes were built on the materials around them.
Inuit winter home made of rock and sod
Overall, the First Nations and Inuit peoples needed and wanted land and natural resources
Aboriginal means living in a land from earliest times. There are 3 groups of aboriginal people in Canada
Handout 1
Handout 1Inuit
The First Peoples of northern Canada above the tree line
First NationsThe First Peoples of the rest of Canada
MetisThese are the children of either Inuit or First Nations people and the early European fur traders
ProductionAboriginal peoples produced goods by hand, mostly using bone and stone tools.
Nothing was wasted.Example : Innu used
caribou meat for food, its bones for tools, and its hide was used for clothing, shelter or footwear.
Aboriginal people believed the land and natural resources must be used wisely. They only killed animals that they needed
They gave thanks for the resources they used.
Example : Innu have a special meal called the Mukushan after a successful hunt to honour the spirit of the caribou.
The First Nations and Inuit peoples shared equally in what was produced and everyone helped produce it
Handout 2
Handout 2Maritimes refers to the provinces of New Brunswick, Nova Scotia and P.E.I. These area had an abundance of resources year round.
Atlantic Canada included the Maritimes plus the province of Newfoundland and Labrador.
The land and water were sources of life so they were very important to these peoples
Very, Very Important ConceptFirst Nations and Inuit had no notion of private ownership (the idea that one person has complete control over an area of land)
Newcomers
Needs and Wants
Europeans first came to North America for economic, cultural and political empowerment
Europeans such as the Puritans in England came to America for religious freedom
Some Europeans were politically disempowered in their home countries. They were not allowed to vote
Handout 3
Handout 3Europeans came to North America for a variety of reasons
Wanted to own more land
Wanted to spread Christianity (cultural empowerment)
Looking for economic opportunities (economic empowerment)
natural resources such as lumber, furs, fish & minerals that they could sell back home in Europe.
Very, very important concept # 2Land ownership was very important for Europeans who had no hope of owning land in their former countries.
People were forced to either rent the land from the nobility (rich, upper classes) or work for the nobility in order to have a place to live.
*Irish potato famine*Scottish Land
Clearances
3 main resources Europeans wanted were
Fish
Furs
Lumber
Fish was a very valuable food source resource as cheap protein and for religious reasons since many days were decreed meatless days by the church
Many European countries were involved in the migratory fishery off the coast of Newfoundland but the English were the most successful.
Migratory fisheryCountries would fish during the spring and summer, preserve it, and return home to Europe during the fall
Domestic FisheryBegan in early 1700's when settlers from Ireland and England began to permanently settle in Newfoundland.
Fur TradeWas originally developed by the French who settled the interior of North America
The beaver pelts were of high quality and were made into hats for sale in Europe
Fur traders set up a trade system with the First Nations people and traded guns, blankets, and other goods for their pelts.
LumberLumber was of great
value to the Europeans because most of the great forests of Europe had been already cut down.
Great Britain needed lumber for housing and for shipbuilding to provide ships for the navy to defend itself and the British Empire
ProductionUntil the 1700's, even though most Europeans had metal tools to make their work easier, it was still done mostly by hand.
Some goods were made by specialized workers such as a blacksmith or a baker or shoemaker.
People could buy these goods in cities but most people had to make their own things
DistributionIn Europe, the economic system was based on the fact that if you owned land or a resource, then you had the right to make as much profit as you wanted from it.
The most common way to distribute goods and services was through markets
Early settlers brought goods with them, made them themselves, or traded for them. There were few markets in America.
The Impact of Contact
The term contact refers to the time when Europeans first came to North America.
Early Contact in the Maritimes
Early Europeans desperately needed the help of the First Nations people to survive the winters in the New World.
Likewise, the First Nations people were curious about the newcomers
Both sides saw an economic advantage by working together. The Europeans wanted furs and the First Nations wanted trade goods to make their way of life easier.
Treaties
A treaty is an agreement between two or more nations
The British wanted treaties with the First Nations to avoid conflicts and to prevent them from allying with the French
Likewise, the First Nations felt that Britain would protect their rights to land and their natural resources
Between 1717 and 1779, the British and First Nations signed a number of treaties called the “Covenant Chain of Treaties”
Each treaty was different but they all shared a common theme :First Nations agreed to act peacefully towards the British and the British agreed to respect First Nations rights
Effects of Fur Trade First Nations traditional way of life changed when they became trappers and they became more dependent on European trade goods to meet their needs
As a result, the First Nations economies were almost completely destroyed because of contact
First Nations began to meet some of their basic needs by trading furs for European goods
After a while, the furs ran out and the European traders moved on
First Nations could no longer meet their basic needs by trading
In the meantime, settlers had arrived and taken over the land which made it harder for First Nations people to hunt and fish in traditional ways
Eventually, First Nations found it very hard to meet their needs because they could not follow their traditional economies and were not able to take part in the new economy that was developing
Beothuk Handout
Beothuk - HandoutThe Beothuk were the First Nations people of Newfoundland.
They fished along the coastline for parts of the year and then moved inland to hunt the caribou and other animals during the winter.
Because the English participated in a migratory style of fishery, the Beothuk had no need to make contact with them
At first, the Beothuk kept their distance from the European fishermen who visited the island to fish. The Beothuks would collect articles left behind by the fishermen that were useful to them.
As settlers began arriving and settling the coastlines of Newfoundland, the Beothuks found it difficult to get to their food sources. This forced them to move inland.
When Europeans moved inland to trap furs, conflicts arose between them and the Beothuks. Many Beothuks were killed and they lost the ability to meet their basic needs.
Eventually, the Beothuk died out and became extinct as a people in 1829 when the last known Beothuk, Shanawdithit, died of tuberculosis.