The Impact of the Atlantic Trade System on the Birth of capitalism

Document Type:Essay

Subject Area:History

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To show the point of view, the paper employees the thesis that: Thesis statement: trans-Atlantic trade should be credited for the birth of capitalist economy. Support 1 Slave trade has been one of the oldest trades in the world. Before capitalism, slaves were used in Egypt and among the tribes of Africa and Asia. European traders began exploring the world which leads to competition for territorial control. The birth of innovation, philosophy and industries in the European continent lead to a need for raw materials which increased the explorer’s activities in remote areas. The Trans Atlantic system began in the middle of 17th century. It was a system in which trading ships sailed from the coasts of Europe down to Africa with produced goods which would be exchanged for slaves in West Africa.

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From Africa, the ships set sail for America or Caribbean where the slaves would be offloaded to work in the plantations. Like the British, the French took part in the trade. St. Atlantic slave trade actually dimmed from the historical trade of slave in the society and previous systems that had existed. History shows that Portuguese are responsible for initiating the trade following the discovery of Brazilian sugar in 1600. The trade was quite small but the English colonial system eventually dominated the world. For sustainability of Queen Victoria's government and colonies, the profits from slavery could not be avoided and would eventually lead to the English industrialization (Bailey, 373-414). 1 Britain unique position was economically assisted and also assisted in development of colonies.

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The Trans Atlantic trade got its idea of trade from this older version of trade. Every section of the American economy is based on slavery. Those that are not had smaller contributions for instance, the revolutionary war where colonist welcomed slaves to fight for them in return acquire freedom. The free labor in the plantations, construction of major infrastructure and poor waging during the segregation period. Arguments During the beginning of the industrial trade, many commentators and theorist such as Thomas Malthus refused to accept the fact that labor was a vital asset in production. The demand for export was increasing in the Caribbean which necessitates increase in labor. Immigration from Britain was voluntary and hence could not meet the numbers required in the plantations.

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The growing demand to secure more labor lead to a shift in the labor market to focus on Africa. 2 In 1943, Eric William began a study on capitalism and slavery. He outlines the need to shift from Indians to African slaves arguing that use of African slaves had nothing to do with race but instead it was a pure economic need. Many other businesses that did not use slavery directly benefited. Connecticut created some of their first policies on slave traders. Profits coming from the slave business, loans and insurance were used in shipping companies that created and innovated better and larger ships that could make the voyage to Africa. In the end there was a network of factories, railroad enterprises, financial instruments and investments in government securities all from the profits of slavery.

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Importantly, every aspect of life in the new world had a touch of slavery (Blaut, 260-296). In 1711, human trader established a slave market on Wall Street. Capitalist such as JP Morgan who made fortunes from slavery established banks that have supported capitalism to date. Looking at American economy today from the torrid history in Alabama dry-goods outfit, Warren Buffet is a good example. He is the richest man in United States worth billions of dollars and the CEO of Berkshire Hathaway. Its antecedent firm was Rhode Island’s textile company that manufactured clothes for export and a beneficiary of slavery. Where they were inadequate, the idea of using free labor resources that were actually purchased in the market allowed the economies to finance their interests.

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