1. Unit 14: Economic Understanding
Economic Basics for Georgia

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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.

10. 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

11. 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.