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Effects of mercantilitialism
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6. The role of mercantilism played a major role in the development of British North America. Mercantilism made it that the colonies would supply raw materials to the mother country, which led to many trade restrictions, this stunted the growth and freedom of colonial business. Britain passed the Navigation Acts, laws that were to make American colonies more dependent on England. Certain goods could only be sold to England, such as sugar and tobacco. For a period of time, Edmund Burke created an idea of Salutary Neglect, which meant that England would leave them alone, and they were able to do rule how they wanted, as long as they remained profitable and abided by English rules, this ended however with the end of the French and Indian war.
England had a huge debt from the war and needed to pay it off, so they issued many taxes on the colonists in an effort to pay it off. This did not work for England however because the colonists stared to smuggle. This meant that they illegally brought other countries goods into America because England didn’t allow trade with other countries.
For example, the Navigation Acts of 1660 and 1663 specified a number of key trade related rules. First, they specified that all colonial trade had to be carried on ships owned by British or colonial traders. Secondly, all colonial goods bound for North America had to pass through certain English ports, in order to be taxed and monitored. Finally, enumerated goods such as sugar were to be shipped only to English ports. Despite these laws existing, the government in London did not enforce them strictly up until 1763. This policy is often referred to as ‘salutary neglect’ and it had the effect of introducing a perceived sense of autonomy and self-determination in the North American colonies. Following 1763, the British government began to enforce the Navigation Acts British lawmakers began to introduce more Acts which further restricted and monitored colonial trade and increased taxes. To the parliament in London this was just enforcing and building upon old laws, an opinion that was not shared by the
Encomiendas: An encomienda was a grant of Native American labor given to prominent European men in the Americas by the Spanish king. This grant allowed European men to extract tribute from natives in the form of labor and goods. The value of the grants was dramatically increased with the discovery of gold and silver in the Americas. The significance of this term is that although this system was eventually repartitioned, it initiated the tradition of prominent men controlling vast resources and monopolizing native labor.
After the French and Indian War ended, England had massive debt and little revenue, so Parliament passed laws taxing the American colonists to aid in paying for the British army and navy that helped protect the colonies. Parliament passed a series of laws, including the Sugar Act and Stamp Act, which taxed goods purchased by the colonists. Colonial merchants, who did not feel they should be taxed without representation in Parliament, signed non-importation agreements promising not to buy or import British goods. There was a lot of violence committed on the customs officials who were enforcing the...
Trade was a vital part of the economy of both England and the British colonies. The colonies would provide a majority of raw materials that would be shipped to England where then they would process raw materials into goods and sell them at markets provided by the colonies. Within this system both England and the colonies depended on each other for commerce. To further enforce this system on their oversees empire England enacted the Navigation Laws. In 1650 the first of these laws was aimed at keeping trade between the colonies limited only to their mother country, England. The law restricted trade of such shippers as the Dutch, by stating all goods must be transported on English vessels to or from the colonies. This helped keep money within British control, but also increased both England’s and the colonies’ merchant marine. Further laws were passed, but none that imposed strict regulations on the colonies. In fact the colonies received advantages from the mercantile system of England. As colonies of England they had the rights of Englishmen. They also had some opportunities of self-government. As compared economically to the average Englishmen of the time, the average American colonist was more often better off. In some markets, such as tobacco, the colonies had great advantages. Although not allowed to trade tobacco with any other country; they were guaranteed a monopoly on the English market. One of the major advantages of British imperialism was the protection supplied by the British army. With the strong soldiers providing defense against natives and other inter colonial disputes and the mighty British navy protecting their commerce on the seas; the colonies benefited from great advantages provided by their oversees “rulers';.
One facet of this unique system involved the numerous economic differences between England and the colonies. The English government subscribed to the economic theory of mercantilism, which demanded that the individual subordinate his economic activity to the interests of the state (Text, 49). In order to promote mercantilism in all her colonies, Great Britain passed the Navigation Acts in 1651, which controlled the output of British holdings by subsidizing. Under the Navigation Acts, each holding was assigned a product, and the Crown dictated the quantity to be produced. The West Indies, for example, were assigned sugar production and any other colony exporting sugar would face stiff penalties (Text, 50). This was done in order to ensure the economic prosperity of King Charles II, but it also served to restrict economic freedom. The geographical layout of the American colonies made mercantilism impractical there. The cit...
Self-interest can be seen in many of the writings throughout American history. The mercantile system, as exhibited by the British on the colonies, was an extremely hedonistic approach to gaining wealth for themselves. Mercantilism, as set forth by the Navigation Acts, imposed strict and extremely descriptive laws that would limit and exploit trade in the colonies, allowing Britain to control the wealth and profit of materials and goods in America. These acts were used to keep America from trading with any other countries. As stated in the Navigation Act of 1660, "no goods or commodities whatsoever shall be imported into or exported out of any lands" to his Majesty belonging"in any other ship or ships...as do truly and without fraud belong only to the people of England or Ireland" (Restoration 98). Britain knew that by controlling the colonies in this manner they could take the raw materials out and sell the finished products back, and by doing so they would profit greatly. This mercantile system exemplifies the arrogant minds of the British while America was developing. This system would soon become a failure due to the people's demands to have representation along with taxation, and their desire to separate from England as a free and independent state. Likewise, it was due to self-interest of the greedy planters and the self righteous farmers in the south that slavery was highly used. At that time they needed all the labor they could get, and the cheapest way to obtain it was through the purchase of slaves. Some of the slavery was downplayed by calling it indentured servitude, where servants were essentially slaves for a limited number of years.
At first, America existed just as any of the other English colonies. England provided financial and military assistance, and in turn America shipped goods that were to be sold in England. This mercantilist system worked out at first, but soon, as the population increased people began to feel that many of England's trade policies and laws were unfair. They also expected to be represented in the English Parliament. Edmund Burke said, "Govern America? As you govern an English town which happens not to be represented in Parliament?" (Notes for Speech in Parliament). However, England declined the colonist's requests, and only made the situation worse by declaring harsher laws. Some laws prevented the colonists from trading with other countries, and others placed larger taxes on goods.
Mercantilism and capitalism both have to do with money accumulation. Capitalism are businesses controlled by private owners. Since they own the business and the government doesn’t all the profit from the work they’ve done and the trades they’ve made goes to them. Mercantilism are countries that are exporting more goods than their importing. In 17th and 18th century this system was used by British government to restrict how the colonies spent their money. Capitalism is the making of the money in a country, and mercantilism is making money from other
The French and Indian War impacted the trans-Atlantic economic relationship between the motherland and her colonies. Before the war colonists were rushing to buy new British manufactured goods resulting from the early stages of the industrial revolution. To pay for these manufactured goods, colonists increased their export of raw materials for sale to Britain. Although the exports were able to pay for a significant portion of cost of British imports, a significant shortfall was covered by British loans. This economic relationship saturated much of pre-French and Indian War colonial America and became normal. After 1763, Britain was in dreadful need for revenue to pay for the French and Indian War. Britain was clever on finding ways to raise revenue from the colonies. From 1650 to the end of the French and Indian War was a period of "salutary neglect." Britain had very little involvement in the lifestyle of the colonies. After the French and Indian War, mercantilism became strictly enforced. Merc...
Despite their staggering differences economically, politically, and culturally, the British colonies of North America managed to pull together to resist the British policies that were threatening their ways of life. Each of the colonies struggled to inhabit and thrive in a new land; disease, Native American raids, and lack of knowledge about growing crops were a few things that stood in their way. After powering through years of hardship and labor, losing loved ones, colonies failing, and struggling to survive, the colonies finally got on their feet and began to grow from the foundations they had established.
One way of the British controlling the colonies was to impose trade regulations on them. They forced the colonies to trade only with them, as dictated by the Navigation Acts and the mercantile system.
Throughout the colonial period, both economic and religious concerns contributed to the settling of British North America. The statement that the "economic concerns had more to do with the settling of British North America than did religious concerns" is valid. These economic concerns, as a cause for the colonization of British North America, outweighed the notable religious concerns that arose, and dominated colonial life during and up until the very end of the British colonial era in North America.
The British also implemented new taxes. The Sugar act of 1764 sought to reduce smuggling, which occurred partly as a result of the earlier Molasses Act. This gave British possessions in the Caribbean the upper hand in sugar trade, which in the British view helped the empire as a whole, but to Americans, and especially the merchants, this put limits on their opportunities. The Currency Act, passed about this time forbade the printing of colonial currency. British merchants benefited because they didn't have to deal with inflated American currencies. The Americans felt they were at an economic disadvantage as very little sterli...
Britain established a series of acts to control the colonies and this became the main cause of the revolution. These acts enabled Britain to increase the colony's taxes and pay for the costs of the seven years war. In addition, Britain angered the colonies by maintaining a large army in North America after peace was restored in 1773. The British also enforced a Stamp Act, which placed taxes on commercial and legal products. To further add to the frustration, the British controlled the shipping of goods and re-routed shipments to avoid going through London middlemen, who sold to independent merchants in the colonies. The final cause of the American Revolution was the addition of the Coercive Acts, which closed the port of Boston and cut back the local elections and town meetings. Thomas Paine summarized the colony's emotions towards the British and published a pamphlet, “Common Sense.” In this pamphlet he mocks Great Britain, a small island thousands of miles away, that controls a large country that should have independence.
The Americans were enslaved and ruled over by the British, and the Americans did not like to live in bondage, therefore, leading to the rise of the American Revolution. In the early 1700s, the North American colonies began to show signs of twist against the British government. England viewed its colonies as a source of raw material and saw a market for their goods in the colonies states. What the conflict between that arose was the inequality in the balance of trade where the colonies accumulated debt whereas Great Britain benefited from the mercantile profits. The conflicts also caused irreconcilable conflicts between the countries. The conflict between the British government and the North American colonies was brutal. It led to a war where there were many deaths and massacres such as the Boston massacre . England imposed certain policies to its colonies such as the Navigation Acts and the Molasses act with hindered the colonies to trade . The people of North America did not like the authority that the British government was imposing on them, and therefore they decided to defend