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
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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
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http://www.merriam-webster.com/dictionary/prostitution
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