Eric Young
Econ 1050: Introduction to Economics
5 March 2020
Travels of a T-Shirt Summary/Reaction Paper
Chapter 1
How does Rivoli answer the question, “Are subsidies the reason America has dominated the global cotton
industry for 200 years?” Support your answer.
● While U.S government subsidies do provide cotton farmers with a comparative advantage, they
are not the only factor behind America dominating the global cotton industry. By giving
government subsidies full credit, we distract from the “astounding entrepreneurial creativity of
American growers.” (7) Cotton growers in the United States have become experts at responding
to shifts in supply and demand, their farms, markets, and science are far more advanced than that
of other countries. While America strives to adapt and overcome, poor countries and farmers tend
to stick to tradition.
Chapter 2
Give examples to support Rivoli’s claim that the American cotton market has dominated the global
market by “ducking the labor markets.”
● Rivoli provides several examples to support his claim that American cotton Markets have
dominated the global market by “ducking the labor markets.” One attribute to the United States
being a leader in cotton production was slavery. Slave plantations allowed the cotton market to
remain competitive while producing large amounts that could then be exported. Slavery and slave
plantations are what enabled U.S to “produce most of the worlds cotton by 1860.” (13) This is
mainly because of the planters ability to force their slaves to “perform repetitive and exhaustive
physical labor” on demand, many times by using negative incentives such as physical
punishment. When this form of forced labor began to fade out, the sharecropping labor system
emerged. In this system, those who volunteered as sharecroppers would exchange their labor for
“housing and food.” (20)
Chapter 3
Describe the impact of genetically modified cotton on production. What firm has been a leader in this
technological advance? What has been the response from Lubbock cotton growers?
● As stated in chapter one, a large reason for the United States domination in the global cotton
industry was their ability to adapt and overcome. A huge factor in how America adapted to
changes was the implementation of technology. Progress as simple as the “introduction of
advanced fertilizers” led to major increase in cotton yields. (31) What really made a difference
was the introduction of genetically modified cotton called “Roundup” that was sold by the
company Monsanto. This compound is not only “one of the most effective herbicides” but it is
also “one of the more environmentally benign.” (43) Fortunately, Texas cotton growers are in
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, favor of this new genetically modifying technology and see the price premium as a “small price
to pay” as they now have less worries concerning weeds and pests. Infact, cotton incomes have
increased by one billion as a result of GM technology. (45)
Chapter 4
How has the Citizens‐Shallowater Co‐op Gin affected Lubbock cotton farmers?
● The Citizens‐Shallowater Co‐op Gin has benefited the Lubbock cotton farmers as they are no
longer at the mercy of the gin businesses. The Reinsches (Nelson and Ruth) along with “about
300 other farmers” are fortunate to own the gin.
How have cotton growers extracted value from cotton production beyond the lint that becomes cotton
fiber in textiles? Give specific examples to support your answer.
● Cotton growers have proven to be very resourceful when it comes to extracting value from cotton
production. Besides gaining profits from the lint that becomes cotton fiber in textiles, many have
turned a waste disposal problem into a revenue by turning “gin trash” into cattle feed, briquettes,
building materials, fertilizer, and ethanol. (51)
“According to at least some observers, the definitive source of U.S. cotton farmers’ comparative
advantage is their ability to get help from friends in high places.” Explain and support this statement.
● U.S Cotton Farmers are fortunate to have many allies in the government. One of the many
benefits to having said allies is that “subsidies paid to cotton farmers are 5 to 10 times as high as
those for corn, soybeans, and wheat.” (59) Infact, the government given subsidies are so high for
cotton that it makes up approximately 30% of said farmers income.
To Rivoli, what impact has genetically modified seed had on growers in developing nations?
● While genetically modified seeds have been very profitable in the United States, they have failed
to have the same impact in developing nations. Unfortunately, these poor countries were
“unlikely to understand the scientific complexity of introducing such technologies.” and without
the education required to implement such genetically modified seeds they have little to no chance
in competing with the United States. (71)
Chapter 5
Describe the author’s impression of Number 36 Cotton Yarn Factory.
● It is exceedingly evident that the author has a overall poor impression of Number 36 Cotton Yarn
Factory. Rivoli refers to stepping into the factory as a “sensory assault” detailing deafening
clatter, dusty steam, and an awful ambiance. (83)
Chapter 6
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