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Human Trafficking

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.

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Human Trafficking

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  1. Human Trafficking Alisha Ault Xiaoxi Liu Terry Mason Luke Barney Jonathan Lazenby

  2. History of Human Trafficking

  3. General Information • Slavery and human trafficking predates recorded history • Ancient civilizations utilized slaves in warfare, domestic servitude, and agricultural labor

  4. 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.

  5. Social Effects of Slavery (Morality) • Immoral, yet positive economics does not deal with morality • Normative economics versus positive • Less consumers due to moral impact

  6. Social Effects (Disease) • Slaves brought disease to America • Lower productivity • Less supply of working class labor • Increase in opportunity for doctors

  7. 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

  8. Sex Trafficking • Women and children traded • Brought money to dealers and pimps • Prices rose due to the illegality

  9. Economic Effects

  10. 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.

  11. 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

  12. 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

  13. 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.

  14. Economic Model • Low-skilled Labor Market • Market Supply and Demand • Firm’s cost curves

  15. 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.

  16. 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    

  17. 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.

  18. Modern Human Trafficking

  19. 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

  20. Labor Trafficking • Industries involved • Agriculture • Service • Trafficking across borders • Middlemen (coyotes) • Loss of money for migrants

  21. Illegal Immigration and the US Economy

  22. Spatial Economics and Immigration

  23. Immigrants’ Effect on US Labor Market • substitutes vs. complements in the labor market • Price of “immigrant-intensive” services decreases • Consumer benefit

  24. Economic Effects of Illegal Immigrants to the US

  25. Economic Model • Low-skilled Labor Market (different perspective) • Two Demand/ Supply curves • Immigration

  26. 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

  27. 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

  28. Child Soldiers

  29. Military Use of Children • Direct role in hostility • Support roles • Political Advantage

  30. Child Soldiers International • Formerly called the Coalition to Stop the Use of Child Soldiers • UK non-governmental org. • Purpose • Primary function

  31. Information Market • Digitalization versus Traditional mediums • Information economy

  32. Prostitution

  33. What is Prostitution? • Definition: the act or practice of engaging in promiscuous sexual relations especially for money

  34. 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

  35. Economic Model • Budget Constraint • Isoquant curves

  36. Two-Sided Market • Market: Sex Trade • Platform: Pimp • 1st Side: Johns (consumers) • 2nd Side: Prostitutes (suppliers)

  37. Where is the Industry located? • Brothels • Street Corners • Customers Residence

  38. 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

  39. 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

  40. Legalization • Incredibly profitable • Increased Safety • Societal Benefit

  41. Bibliography • http://www.economist.com/node/11561082 • http://fightslaverynow.org/why-fight-there-are-27-million-reasons/economics-and-human-trafficking/ • http://www.ilo.org/wcmsp5/groups/public/@ed_norm/@relconf/documents/meetingdocument/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-trafficking-india-prostitutes?_s=PM:WORLD • http://www.reuters.com/article/2012/03/19/us-bangladesh-prostitution-idUSBRE82I02A20120319 • 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

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