Human Trafficking
ALISHA AULT
XIAOXI LIU
TERRY MASON
LUKE BARNEY
JONATHAN LAZENBY
History of Human Trafficking
General Information
Slavery and human trafficking predates recorded
history
Ancient civilizations utilized slaves in warfare,
domestic servitude, and agricultural labor
Slavery in the Americas
Traders shipped Africans to America via the middle
passage
Traders made port in the Caribbean, selling their
cargo which was then shipped to the U.S.
Social Effects of Slavery (Morality)
Immoral, yet positive economics does not deal with
morality
Normative economics versus positive
Less consumers due to moral impact
Social Effects (Disease)
Slaves brought disease to America
Lower productivity
Less supply of working class labor
Increase in opportunity for doctors
Triangle Trade
Trade between Europe, Africa, and the Caribbean
(North America)
African sellers (of slaves) gained
Benefit of lifelong productivity for European/
American buyers
Sellers’ cost vs. Buyers’ benefit
Sex Trafficking
Women and children traded
Brought money to dealers and pimps
Prices rose due to the illegality
Economic Effects
General Information
The population of south is 30% the population of the
north.
In 1860, the south was able to produce over:
one- third of the corn
one- sixth of the wheat
four- fifth of the peas and beans
nine-tenth of the sweet potatoes
over one- half of tobacco.
Economic effects of America
From 1790 – 1820, a slave is sold for an average of
$200.
In 1790, the total cost for slavery in United States is
$139, 557, 000.
The total revenue is $87,700, 000
$139, 557, 000-$87, 700, 000 = $51, 857, 000
Economic Effects
$51, 857, 000 LOST!!!!
But still a good deal
One-time fee (no salary)
A good price for infinite labor.
The slaves could reproduce and make more
future employees; taken as an investment
Economic Effects
In 1820, the average cost is still $200.
The number of slaves increased 195,150.
The total cost this year is $16, 099, 875.
The total revenue this year is $117, 900, 000.
Economic Model
Low-skilled Labor Market
Market Supply and Demand
Firm’s cost curves
Economic Effects
The internal trade of slaves was a very important
source income.
The slaves could reproduce and make more future
employees; taken as an investment
Northern slaves owners need to trade slaves to
south before the slavery was abolished in the north.
Economic Effects
High death rate of slaves on plantations and the rise
of need for the production of cotton and tobacco.
Many people trying to take advantages of the
inability to import slaves by breeding and selling
slaves.
Sailors could sell the slaves which created a new
market
Economic Effects on Slaves
Struggle for economic independence
Failure to provide freed man with land after
emancipation and reconstruction.
Lasting effect:
poverty, poor health condition, high death rate.
Modern Human Trafficking
Facts
800,000 trafficked across borders each year
Millions more domestically
2.5 million under forced labor conditions
$32 billion revenue from forced labor
Excluding sexual exploitation, $10.4 billion revenue
Labor Trafficking
Industries involved
Agriculture
Service
Trafficking across borders
Middlemen (coyotes)
Loss of money for migrants
Illegal Immigration and the US Economy
Spatial Economics and Immigration
Immigrants’ Effect on US Labor Market
substitutes vs. complements in the labor market
Price of “immigrant-intensive” services decreases
Consumer benefit
Economic Effects of Illegal Immigrants to the US
Increase in
domestic
supply of low
skilled labor
Downward
pressure on
US wages
All lowskilled
workers see
their wages
drop
Employers
receive
higher
incomes
Economic Model
Low-skilled Labor Market (different perspective)
Two Demand/ Supply curves
Immigration
Economic Effects of Illegal Immigrants to the US
Redistribution of income in the US
Businesses benefit more, low-skilled US workers impacted
negatively
Immigration surplus
Term used to describe the net gain in national income because
of increased productivity due to immigrant labor
Government Policy Choices
Enforcement
Accommodation
Cost-benefit analysis
Opportunity cost of enforcement (resulting in a loss in GDP
from decrease in market productivity) outweighs opportunity
cost of accommodation
Child Soldiers
Military Use of Children
Direct role in hostility
Support roles
Political Advantage
Child Soldiers International
Formerly called the Coalition to Stop the Use of
Child Soldiers
UK non-governmental org.
Purpose
Primary function
Information Market
Digitalization versus Traditional mediums
Information economy
Prostitution
What is Prostitution?
Definition: the act or practice of engaging in
promiscuous sexual relations especially for money
Who are the actors?
Prostitute: a woman who engages in promiscuous
sexual intercourse especially for money
John: a prostitute's client
Pimp: a man who solicits clients for a prostitute
Economic Model
Budget Constraint
Isoquant curves
Two-Sided Market
Market: Sex Trade
Platform: Pimp
1st Side: Johns (consumers)
2nd Side: Prostitutes (suppliers)
Where is the Industry located?
Brothels
Street Corners
Customers Residence
Prostitution: The World’s Oldest Profession
World Wide Value of approximately 187.4 Billion
dollars
Top Countries are: China, Spain, Japan, Germany,
and the United States
U.S. Sex trade industry estimated at 14.6 Billion
Sex Tourism
Definition: when someone travels to another country
for the purpose of paying to have sex, especially with
children.
Many poor families will sell children into slavery
Many third world countries have prevalent child
Prostitution
Legalization
Incredibly profitable
Increased Safety
Societal Benefit
Bibliography
http://www.economist.com/node/11561082
http://fightslaverynow.org/why-fight-there-are-27-million-reasons/economics-and-humantrafficking/
http://www.ilo.org/wcmsp5/groups/public/@ed_norm/@relconf/documents/meetingdocume
nt/wcms_106230.pdf
http://www.immigrationpolicy.org/just-facts/unauthorized-population-today
http://www.migrationpolicy.org/pubs/Hanson-Dec09.pdf
http://www.ilw.com/articles/2008,0107-kelley.shtm
http://www.child-soldier.org/
http://www.child-soldiers.org/childsoldiers/some-facts
http://www.leaveafamilylegacy.com/African_American_Families.pdf
http://www.havocscope.com/prostitution/ranking/
http://www.merriam-webster.com/dictionary/prostitution
http://dictionary.cambridge.org/dictionary/british/sex-tourism
http://articles.cnn.com/2009-05-11/world/india.prostitution.children_1_human-traffickingindia-prostitutes?_s=PM:WORLD
http://www.reuters.com/article/2012/03/19/us-bangladesh-prostitutionidUSBRE82I02A20120319
http://www.guardian.co.uk/society/2010/apr/05/sex-workers-bangladesh-steroid
http://www.legalaffairs.org/issues/September-October-2003/feature_fleiss_sepoct03.msp
