11-20-08_Lecture Notes - Economics 323 (11-20-08) Today:...

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Economics 323 (11-20-08) Today: Walton, 10, Temin, Iron, Temin steam Tues: Hazard, Ware, Jeremy Tues 12/2: Hounshell, Smith, Temin, “Labor” Farm has to be prepared to support himself for a year- no income from farm – no crops- he has to feed himself and his subsistence from savings Forgone income Buy stock in tools Problem of finding markets – transportation costs are very high in newly settled area. Frontier areas like Minnesota – very expensive Farms aspire to sell things- to become a commercial farmer to have cash to buy the things that they want Costs high?- process output into a high value commodity- ex grain can be converted into other products (whiskey) – feed to animals- barrel that to market Farmers are looking for specialty crops for which there is a market Country stores- first merchants to move into the new regions- purchased the farms products- book credit – Country store aggregated output from farmers and then shipped in bulk “walk to market” – livestock- can transport itself to the market – eases transport costs emergence of middle men- country store merchants farmers always looking to be commercial farmers farming in northwest- labor shortage relative to land operative constraint on farm making is the number of people you can put in the field difficult to regularly expand the family labor source- fully time employees outside of the family were very unusual in the northwest last choice is to work for someone else- people either buy or rent land make full use of family labor- from a very young age people are putting in long hours- school year is around the agricultural cycle clear division of labor dependent on age and gender try to substitute tools and machinery for labor after 1815-1860 there are changes in farm tools and intro of farm machinery- 1849 there
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11-20-08_Lecture Notes - Economics 323 (11-20-08) Today:...

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