Unit 14: Economic Understanding Economic Basics for Georgia

Goods & Services Produced in GA All throughout its history, GA has produced goods & services consumed at home and abroad GA’s productive soils and natural resources have allowed for a thriving economy. Since 1865, economy diversified to include manufacturing Since 1960, developed a strong service component in its economy in areas such as banking, finance, insurance, medical care, & education

Colonial Georgia Grape production & growing mulberry trees were not suitable to GA’s soils Colonists developed different cash crops (crops grown for sale, not consumption) Farmers began to grow Rice Wheat Indigo Vast forests allowed for production of wood related products such as tar, turpentine & pitch Photos: Rice is top left; Indigo is top right; Wheat is center; Bottom photo is of pitch pines—common throughout GA

Economy in Post-Revolutionary GA Cotton production began in 1786 Invention of the cotton gin caused cotton to become GA’s #1 cash crop before the Civil War

New South: Post Civil War Economy in GA Late 1800’s saw the introduction of manufacturing & business to GA’s economy Textile industry developed to produce cotton cloth; GA had cotton, abundant land/water, cheap labor Businesses grew to support manufacturing Forests were used to produce lumber for new factories, mills, housing, furniture, naval stores (materials used in ship building), pulp & paper Largest percentage of the economy was still mainly agricultural

Mineral Resources New South era also rise in use of mineral resources 2 major minerals were mined (still vital to state economy today) Kaolin: white clay used in manufacture of paper & other products Bauxite: used in the manufacture of aluminum Other important minerals: gold, coal & iron GA has the largest deposits of kaolin in the US & is a world leader in kaolin mining, producing about $1 billion in kaolin a year; example of how its used in paper production—it makes the paper shiny (think about how pages of a textbook have a sheen to them). Allows for paper to be more durable. Also used in making ceramics and pharmaceuticals. GA no longer mines gold, coal or iron Photos: Top – Kaolin mine in Washington County, GA; kaolin “rock”; Center photo - bauxite ore; Bottom Photo – Bauxite mine in Andersonville, GA

20th Century GA: Economic Diversity Continues To meet demands of the war effort in WWI & WWII, new industry was developed in GA Cars & trucks Airplanes Shipyards expanded & updated Post WWII era saw complete industrial development of GA & agriculture became a secondary source of state revenues/employment Photos: Lockheed Martin sign at entrance to Marietta facility; Overview of the Lockheed Martin facility in Marietta; Historic marker for the Brunswick Shipyards and the Liberty Ship production during WWII; photo of the port of Brunswick today

GA’s Economy Today Agriculture: GA is a leading producer of peanuts & poultry Variety of manufactured goods – food, beverages, carpet, aircraft & aircraft parts Largest sector of economy is service sector (something that is performed for people rather than producing a product): Medical care, banking, insurance, finance, education

GA & International Trade 1/6 of GA’s farm products are exported More than 50 consulates, trade offices & bi-national chambers of commerce in GA Foreign companies operating in GA: Germany, Japan (employs the most Georgians), the UK, France, Canada, the Netherlands; generate more than $15.5 billion in capital investment Foreign investors like GA because its close to markets, suppliers & key industries, has ample transportation, good living conditions, mild climate, strong growth, and good quality, moderately priced labor market.

GA’s Transportation Systems & World Trade International trade continues to rise due 2 deepwater ports Hartsfield-Jackson International Airport plus over 260 local/regional airports 4 major interstates Over 5,000 miles of rail service lines 1000’s of miles of federal & state hwy systems

Important Economic Terms to Know Economy – the system of growing, making, selling, buying, & using products & services Market Economy – the US has a market economy in which producers & consumers determine what products are produced & what prices are paid for those products Trade – voluntary exchange of goods & services between people & nations Bartering - trading goods & services without money Mercantilism – British economic policy to use the raw materials/resources of the colonies to enrich Britain Import – a product brought into a country to sell Export – a product a country sells to another country Entrepreneurs – those people in a market economy who see a need & create goods & services to satisfy the need. They are risk takers, innovators, & creative Profit – the amount left over after all production costs have been subtracted.