Impact of Native Americans on the Economy

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Impact of Native Americans on the Economy

The most popular narratives taught in our public schools are that Native American economies were strictly hunter-gathering and bartering. While this was part of the truth, some Native American economies were highly developed prior to European colonization. Gary Nash remarks that there were “striking differences”, between the levels of economic development of different tribes [1]. The Pueblo people in the southwest had established an almost “urban” society, with apartments housing many people built into the cliff faces. Larger apartment complexes wouldn’t exist in North America until 19th century New York City [2]. In order to sustain so many people in one area, the Pueblo had developed advanced agricultural techniques, similar to those found in Euro-Asian societies [3]. There also were trade networks greater than those found in Europe at the time, evidenced by the wide variety of trade goods uncovered in the Native American City of Cahokia [4]. Democracy existed in Native American society prior to colonization, and was practiced, to great benefit, by the Iroquois tribe.

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Native Americans had a large impact on colonial economies, both positive and negative. The Europeans traded the Native Americans for skins and furs, which they would ship back to Europe for large profits [5]. The colonists were also dependent on the Natives for agricultural produce until they could become self-sufficient [6]. When war broke out between the colonists and the natives, it took a heavy toll on the population and economic growth of the colonies. In the end, the conflict turned in favor of the colonists as more immigrants arrived every month, and the Indian population was wasted by European diseases [7]. The high death tolls, from fighting, disease and starvation, caused a severe shortage in the labor force of the colonies. Many of the tribes that were not wiped out were enslaved and used as agricultural labor [8].

The colonial labor force was diverse and multifaceted. It was comprised of a mixture of European immigrants and Native Americans. There was labor demand for all ages and skills. In the north there was lumbering, fishing and shipbuilding. In the middle colonies, there was agriculture and trades like shoe-making, pottery and woodworking. In the south there was plantation agriculture [9].

The labor force was segmented into 3 groups; free labor, slaves and indentured servants. The free labor is self-explanatory, as free natives and Europeans were part of the labor force. Free Labor wages in the colonies were relatively high compared to Europe due to the opportunity cost that was afforded the colonists. It required high wages to entice workers to come work for your firm rather than enterprising on starting their own business or owning their own land [10]. Slavery was practiced, especially in the south, in order to meet the high demand for agricultural labor in the plantations. Defeated Native American tribes were enslaved to help meet this demand, as well as Africans from the Caribbean [11]. The third, and most interesting part of the colonial labor force, was that of the indentured servants [12]. Indentured servants were colonists that had signed a written agreement prior to their immigration that bought them passage to the new world. In