Free blacks in the antebellum period—those years from the formation of the Union until the Civil War—were quite outspoken about the injustice of slavery. Their ability to express themselves, however, was determined by whether they lived in the North or the South. Free Southern blacks continued to live under the shadow of slavery, unable to travel or assemble as freely as those in the North. It was also more difficult for them to organize and sustain churches, schools, or fraternal orders such as the Masons.
Although their lives were circumscribed by numerous discriminatory laws even in the colonial period, freed African Americans, especially in the North, were active participants in American society. Black men enlisted as soldiers and fought in the American Revolution and the War of 1812. Some owned land, homes, businesses, and paid taxes. In some Northern cities, for brief periods of time, black property owners voted. A very small number of free blacks owned slaves. The slaves that most free blacks purchased were relatives whom they later manumitted. A few free blacks also owned slave holding plantations in Louisiana, Virginia, and South Carolina.
Free African American Christians founded their own churches which became the hub of the economic, social, and intellectual lives of blacks in many areas of the fledgling nation. Blacks were also outspoken in print. Freedom's Journal, the first black-owned newspaper
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Prices are often volatile due to inelastic demand. e.g if there is a ‘good harvest’, supply will increase and there will be a fall in the price of primary products. However, because demand is inelastic, this would lead to a fall in revenue.
coffee-supply-price-growers
The volatile price of coffee – can make planning difficult.
Supply can also be volatile due to weather and disease. For agricultural crops, there is always a risk of crop failure, which could cause economic hardship in one particular year.
Limited resources. One day developing economies may run out of its finite primary products, e.g. precious metals could become scarce. Without diversification, this would leave the economy with a void.
Discourages investment in other aspects of the economy. Concentrating on primary products does not always help the long-term development of an economy because it can contribute towards a lack of investment in other aspects such as education and industrial production. Comparative advantage can change over time. It’s important to not just look at the present comparative advantage, but prospects for next 10 or 20 years.
There is a low-income elasticity of demand for primary products. With a rise in global income, there is a proportionately smaller percentage rise in demand for primary products. (agricultural products tend to be income inelastic). Therefore, if you produce primary products, you may see lower rates of economic growth than countries who produce manufacturing goods – which are more income elastic. The Prebisch-Singer hypothesis suggests that countries who concentrate on primary products are vulnerable to a declining terms of trade.
There are 5 points
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