GRADE 7 SOCIAL STUDIES CHAPTER 2 ECONOMIES IN HISTORY

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1 GRADE 7 SOCIAL STUDIES CHAPTER 2 ECONOMIES IN HISTORY CHAPTER INTRODUCTION Throughout history, every society in the world has had some kind of economic system. The purpose of an economic system is to answer these questions: What goods and services do people need and want? How can we produce these goods and services? How will we distribute them? Looking back at history we can see that the way people answer these questions depends on the kinds of technologies they use. FIRST NATION AND INUIT ECONOMIES NEEDS & WANTS In the past, First Nations and Inuit have depended on the land and natural resources for survival. The economy of these peoples are based upon the availability of resources. In the north above the tree line, Inuit built houses using blocks of snow, bones, stone, and sod. A wide variety of natural resources were key to the survival of First Nation peoples. See the map and key on page 26 & 27.

2 FIRST NATIONS AN INUIT ECONOMIES PRODUCTION The goods that First Nations people needed in their lives were made by hand, using bone and stone tools. They were very skilled at using resources in the most efficient ways possible. A caribou for example used the meat for food, bones were used for tools, and hides were used for shelter, clothing, and footwear. First Nations typically travelled throughout the year to take advantage of the resources available during the different times and seasons. A PART OF NATURE While there were difference between traditional economies of First Nation peoples there were similar beliefs about the land. They believed that people and nature were not separate. Land and natural resources are seen as the source of life must be used wisely to ensure the survival of future generations. DIS TRIBUTION In most First Nation and Inuit communities, everyone helped with production, and everyone shared equally in what was produced. Often survival was a struggle and people did what they could to help one another in these times. Being able to hunt, fish, and harvest over large areas was important to people. Some First Nations peoples had clear ideas of boundaries and defended their land from other nations, other regions people moved back and forth over the same areas and First Nations groups shared the forest and rivers where they lived. Some groups also had trade networks and traded with other First Nations groups.

3 NO ONE OWNED THE LAND First Nations and Inuit peoples did not have a tradition of private ownership. To them, the idea of a person owning land was like thinking that a person could own the air. In some societies certain families or groups had the right to harvest or hunt in particular areas, however even they did not own that area of land. It was only theirs to care for on behalf of the group. NEWCOMERS NEEDS & WANTS Beginning about 1500, Europeans began arriving in North America. European nations were coming to North America to seek out new land to take over, as well some believed that their culture and religions should be shared around the world. They were also looking for new economic opportunities. Private land ownership is a very important idea in European Countries. For centuries, most of the land in Europe had been owned by the monarchy. As a result, some were very wealthy, others lived in poverty. Most people had to rent land or work for landowners in order to have a place to live. PRODUCTION Until the 1700 s, Europeans used basic tools to make things by hand. Metal tools made work easier, but the economy was Pre-Industrial. Even when factories were started in the 1700 s, most every day objects were made by people in their own homes. Work was done by hand or with the help of animals. Sometimes goods were produced by individuals who were specialized in one area; blacksmiths, bakers, dressmakers, shoemakers, coopers, and weavers are some examples - these people often had shops in larger towns and cities. In the countryside, farm people often had to produce more of their own goods. Spinning wool, making barrels. These skill sets came in handy for the early settlers when they arrived in North America.

4 DISTRIBUTION In Europe, the economic system was based on the idea that if you owned land or a resource, you had the right to make as much profit from it as possible. The most common ways for goods and services to be distributed was through markets - if you wanted something, you paid for it with money. Early European settlers in North America had to begin by making do with what they brought with them, made themselves, or could get by trading. Early on there were few markets where people could buy or sell products - they hoped that in time they could set up the same kind of market system that was used in Europe. THE IMPACT OF CONTACT EARLY CONTACT IN THE MARITIMES The arrival of newcomers eventually caused serious problems for First Nations and Inuit. When the First Nations of the Maritimes first met Europeans, they were curious about the newcomers and willing to see what they were all about. The Europeans did not know how to survive off the land and badly needed the help that First Nations offered. As they got to know one another, both groups realized that there were some good economic opportunities. The Europeans were interested in getting furs, the First Nations people were interested in trade goods such as metal knives and pots. This represented the beginning of the fur trade.

5 THE IMPACT OF CONTACT TREATIES There had been conflicts between First Nations and Europeans from the beginning of contact. By the early 1700 s both Great Britain and First Nations believed that making treaties would help them get along in the future. Great Britain believed that treaties would help make sure that First Nations sided with Britain in any conflicts against France. First Nations believed that treaties would ensure peace and allow them to maintain their way of life for future generations. Between 1717 and 1779 Britain and First Nations entered into a number of Treaties. The Covenant Chain of Treaties and the Treaties of Peace and Friendship. These treaties (which are key terms for the chapter)_ are still in force today and apply to the Mi kmaq, Passamaquoddy, and the Maliseet of the Maritimes. THE IMPACT OF CONTACT THE EFFECTS OF THE FUR TRADE The First Nations economies changed because of the fur trade. With the fur trade, people began to spend more time hunting for fur bearing animals such as fox and beaver. Because they weren't spending much time fishing and hunting for their own needs, people had to use more European goods such as flour and cloth.

6 It was a cycle: they hunted for furs - traded goods, they needed trade goods because they were hunting for furs. The cycle could not continue. The animal population became so low that people could not get enough furs to trade. This left the First Nations with the problem of how to meet their most basic needs. European settlement didn t allow for First Nations to go back to traditional fishing and hunting. THE IMPACT OF CONTACT THE EFFECTS OF EUROPEAN SETTLEMENT First Nations did not have an issue initially with European settlers, they were used to sharing land with others. Europeans idea of private ownership did not mix well with traditional economies. As forests were cut, and lands were fenced for farming and ranching, there were fewer areas that were good for hunting. First Nations found that rivers, lakes, and oceanfront areas that provided important food sources were now cut off by European settlers who were not sharing the land. On top of that, most Europeans believed their economic, political, and cultural ideas were superior to First Nations ideas.