If there was no labor shortage, there would be no market for slaves

Start of the Slave trade Between 1348 and 1351 the black plague killed up to 60% of Europe’s population. [1] As a result of the plague, Europe’s slave trade was revived in 1380. The slaves came from the Middle East, North Africa, and from other European countries. In 1444 Portuguese slave traders from West Africa started the Atlantic Slave trade. [2] When the American colonies were established, more labor was required to work the fields. The Europeans sent slaves to the colonies in order to meet the growing demand for labor. [3] As time passed the northern colonies became more industrialized, while the south remained rural. The industrialized north no longer required slave labor because of their growing population and their technological advances. [2] The Economics of the Slave trade The Labor Supply is determined by the Marginal Utility of Leisure per Marginal Utility of Income. An increase in income reduces the Marginal Utility of Income, and an increase in Leisure reduces the Marginal Utility of Leisure. The Labor Demand is determined by the Nominal Marginal Product of Labor. When there is not enough labor to meet the labor demand, it creates a labor shortage. The labor shortage generates a demand for slave labor. The Marginal Product of Capital per Labor When Eli Whitney invented the cotton gin it increased the demand for slavery. Within 2 decades slavery doubled as a result of the cotton gin.[4] Aggregate output is a factor of capital and labor. According to the law of diminishing returns, you can only increase one factor of production to a certain point, without increasing the other factors. Prior to the cotton gin, the Marginal Product of Capital already surpassed its potential. Capital includes land, seeds, technology, and other means of production. In order to prevent diminishing returns Plantation owners purchased slaves to work the fields. The cotton gin increased the potential Marginal Product of Labor thereby increasing the demand for labor. The slave market When slave owners purchased slaves, they intended to use those slaves for a specific purpose. Slaves were expensive; in a time when the annual per capital income was only $110, buying a slave cost $400 on average. The average cost of a slave never fell below $200, and by 1858 the average cost of a slave had risen to $800. [5] When looked at in 2011 dollars; by the mid-19th century the average price of a slave rose to $20,000 from $5,000 at the beginning of the 19th century. [5] Buying a slave was not a cheap investment. The average price of a single slave cost the same as a house. When compared to the GDP per capital, the cost of a slave in 1850 was equivalent to $175,000 in 2011 dollars. [5] The initial cost of a slave was not the only cost a slave owner had to pay. The slave owner also had to feed, house, and clothe his slaves. Just as a rancher has an invested interest in keeping his cattle alive, a slave owner had an invested interest in keeping his slaves alive. Conclusion If not for the labor shortage caused by the Black Death, the slave trade would not have existed. As the Potential Marginal Product of Labor increased, the demand for labor increased. When the rural labor supply was insufficient, it caused an increase in the demand for slaves. If not for the labor shortage, there would be no market for slaves. Work Cited 1.)http://facts.randomhistory.com... 2.)https://www.freetheslaves.net... 3.)https://www.boundless.com... 4.)http://www.pbs.org... 5.)http://www.measuringworth.com...