Economics and Government in
the Colonies
Unit 1, Lesson 4
Essential Idea
• The Southern and New England colonies
developed differently socially, economically,
and in government.
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Southern Society
The Southern Colonies:
Include BOTH Chesapeake and Southern colonies
Southern Geography:
Warm, lots of fertile land, good for agriculture
Southern Economy:
Growing cash crops for export, especially tobacco, rice, and cotton
Southern Social Structure
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Top:
Wealthy planters were the smallest group, but owned the most wealth and land near the coast
Held the most influence in government and could afford private education for their children
Middle:
Small farmers were the biggest group, but had little wealth and little land
Practiced subsistence farming and lived in the “backcountry”
Bottom:
Indentured servants and African slaves, who owned no land and usually worked for wealthy
planters
Indentured Servants
• Indentured Servants:
• Poor Englishmen who
agreed to work for a
wealthy planter in exchange
for transportation to
America
• Indentured servants
worked 4-7 years and were
given food, shelter, and
clothing
• Headright system:
• The English government
gave wealthy planters 50
acres for each indentured
servant they brought to
America
Indentured Servitude
• Results for Wealthy Planters:
• Got cheap labor for their growing
plantations
• Received large amounts of the
best land
• Results for Indentured Servants:
• Often worked extremely hard,
were treated badly, and many died
before the end of their contract
• If they finished their contract,
there was little or no good or
Indian-free land left for them
Bacon’s Rebellion
• Causes:
• Virginia’s governor was Sir
William Berkeley and
wealthy planters dominated
the government (in the
House of Burgesses)
• They passed laws that hurt
small farmers and exindentured servants,
revoking their voting rights
• When small farmers and exindentured servants fought
Indians for land, the
government sided with
Indians
• They were also frustrated
by the lack of women
Bacon’s Rebellion
• Bacon’s Rebellion
• In 1676, Nathaniel Bacon
led a militia of poor
farmers to attack the
Indians
• Next , the militia turned
on the Virginia
government, civil war
broke out, and Jamestown
was burned
• Bacon got sick and died,
causing the rebellion to
fall apart and end
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From Indentured Servitude to African
Slavery
Effects:
Wealthy planters began to stop using indentured servants and turned to African slaves for labor
Unlike indentured servants, slaves would never be free and never need land
Slaves would be less likely and less able to rebel
The Southern economy would become dependent on FARMING, based on SLAVERY for labor
The Evolution from Indentured Servitude to African Slavery
New England (Northern)
Society
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New England Geography:
Colder, rocky soil, not good for agriculture
New England Economy:
Based on SMALL farms (subsistence)
Based on fishing, lumber, and shipbuilding
New England Society
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Social Structure:
New England society was based on TOWNS
Puritans lived close together so they could regulate moral behavior and earn God’s
favor
Towns were centered around church, school, and the marketplace
New England Culture
• Culture
• Puritans were very
religious, worked
hard, and watched
over each others’
moral behavior
• Education was
heavily emphasized
and most towns had
schools
• Literacy rates were
very high, largely so
Puritans could read
the Bible
New England Government
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Government:
Town meetings gradually
replaced the General
Court
At town meetings, local
issues were discussed and
local officials were elected
By contrast, Southern
colonial government was
less involved in people’s
lives because they lived
far apart
Town meetings gave
residents a feeling of selfgovernment
Belief in the right to selfgovernment would
eventually help lead to
the American Revolution
New England Society
Setting the Stage for the Civil War
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Future Tension:
Different geography caused northern and southern parts of America to develop differently
North:
1. Economy based on business and manufacturing
2. Desire for pro-business and pro-manufacturing government
3. Little need for slavery
Seeds of the Civil
War
• South:
• 1. Economy based on agriculture
• 2. Desire for pro-agriculture
government
• 3. Strong need for slavery
• Future Result: PARTLY due to
geography, tension would grow
between the North and South
because each section of the
country had different needs
(sectionalism)
• This tension would eventually
cause the American Civil War
Triangular Trade
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1. New England colonies sent Africa manufactured goods and rum
2. Africa sent slaves to the West Indies (Carribbean)
This “middle passage” was very difficult for slaves, and many died
3. Sugar plantations in the West Indies sent sugar and molasses to the colonies, where they were
turned into rum
Slaves who survived in the West Indies were often sent to the colonies too
The Middle Passage
The Colonies Grow
• Other Trade:
• The colonies also sent raw materials to
England like tobacco, fish, lumber, etc.
• Impact of Trade on Colonies:
• Port cities like New York, Boston,
Philadelphia, and Charlestown grew