1863 - Emancipation Proclamation
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Given by Abraham Lincoln at the end of the American Civil War, it abolished slavery in the United States. This ruined the Atlantic slave trade, and made many southerners angry. They did not turn out as much cotton as they did normally, so consequently production in England slowed, and the price rose. Because of this, according to Adam Smith’s theories, more people would farm cotton because it was more profitable, and the price would fall, which was exactly what happened.

Chapter 13

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.: 8th Edition :.