Economics of Tobacco

    In the early 1600s, the settlers in the new world were frantically looking for a comodity that they could trade and use to provide for the. A Jamestown farmer named John Rolfe had the idea to create a new kind of tobacco by breeding the tobacco used in England with the tobacco found in America. After Rolfe succesfully traded his first crop, excitment grew in America and lots of farmers made tobacco their primary crop. And due to the rising demand for tobacco, there was also a rising demand for workers. And so slavery started in America. As they were able to sell more and more tobacco, the price began to drop and so they had to make more tobacco. Finally England put a monopolly on tobacco. No one in England was aloud to grow it, and the tobacco grown in America had to be sold to people in England.