Mercantilism Essay
England in the 17th century adopted the policy of mercantilism, exercising control over the trade of the colonies, thus greatly affecting their political and economical development. Mercantilism was the policy in Europe throughout the 1500's to the 1700's where the government of the mother country controlled the industry and trade of other, weaker settlements with the idea that national strength and economic security comes from exporting more than what is imported. Possession of colonies provided the countries with sources of raw materials and markets for their manufactured goods. This system had political and economical repercussions on the inflicted because it inspired many new laws and acts for the colonies, and it restricted the colonies trade to England, reducing the revenue that the colonies received.
The thirteen colonies were influenced by the mercantilism policy of England due to the numerous trading prohibitations and taxes that were placed on them and the goods they trafficked. The first extensive code of mercantile regulations was the Acts of Trade and Navigation which established three main rules for colonial trade. First being trade between the colonies and England could only be transported on English or colonial-built ships, operated by English or colonial crews; second that all goods, excluding some perishables, could only pass through English ports; third, certain enumerated goods from the colonies could only be exported to England, including tobacco and sugar. The only positive effect of this act was that English military forces protected the colonies from potential threats from rivaling countries. Similar acts to those of trade and navigation, such as the Staple Act of 1663, the...
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...nerally worth more than raw goods, thus everyone working for the good of the country.
The English intended for mercantilism to benefit them and make the colonies work with England independent of foreign countries. This idea backfired, causing the stimulation of independent political ideas due to the unsatisfactory economical gain that mercantilism placed on the colonies. The laws and acts put on the colonies inspired new political movements and the search for financial gain elsewhere. English mercantilists believed that inhabitants needed a wise government to harness production, to curb the greedy and destructive tendencies of competition, and to promote and channel the exchange of goods through regulation, but it is because of this greed and destructive tendencies that the mercantile system could never work because people really just want to benefit themselves.
Leading up to the time of the Revolutionary War, seven policies were passed by Britain in hopes of controlling the colonies. These acts culminated in the Quebec Act which persuaded many Americans into supporting the revolutionary effort. The Proclamation of 1763 was the first policy passed by the British. This forbid any settlement west of Appalachia because the British feared conflicts over territory in this region. The proclamation, however, infuriated the colonists who planned on expanding westward. The Sugar Act was passed shortly after in 1764. This act sought harsher punishment for smugglers. The next act to be passed was possibly the most controversial act passed by Britain. The Stamp Act passed in 1765 affected every colonist because it required all printed documents to have a stamp purchased from the British authority. The colonist boycotted British goods until the Stamp Act was repealed but quickly replaced by the Declaratory Act in 1766. The British still held onto the conviction that they had the right to tax the Americans in any way they deemed necessary. The Declaratory Act was followed by the Townshend Acts of 1767. This imposed taxes on all imported goods from Britain, which caused the colonies to refuse trading with Britain. Six years passed before another upsetting act was passed. In 1773, the Tea Act placed taxes on tea, threatening the power of the colonies. The colonies, however, fought back by pouring expensive tea into the Boston harbor in an event now known as the Boston Tea Party. The enraged Parliament quickly passed the Intolerable Acts, shutting down the port of Boston and taking control over the colonies.
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
When the colonies were being formed, many colonists came from England to escape the restrictions placed upon them by the crown. Britain had laws for regulating trade and collecting taxes, but they were generally not enforced. The colonists had gotten used to being able to govern themselves. However, Britain sooned changed it’s colonial policy because of the piling debt due to four wars the British got into with the French and the Spanish. The most notable of these, the French and Indian War (or the Seven Years’ War), had immediate effects on the relationship between the colonies and Great Britain, leading to the concept of no taxation without representation becoming the motivating force for the American revolutionary movement and a great symbol for democracy amongst the colonies, as Britain tried to tighten their hold on the colonies through various acts and measures.
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...
The British rule that was established in the colonies was oppressive and unfair. The British rule was immoral because Parliament contained a totality of British politicians who only cared about Britain’s wants and needs. The Colonists, “wanted the right to vote about their own taxes, like the people living in Britain. But no colonists were permitted to serve in the British Parliament.” (Ember) This unfairness led to many unwanted laws such as the Intolerable Acts and the Stamp Act. These laws did not benefit the colonists in any way, but the acts significantly helped the British. Laws and acts were forced
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.
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...
The king became more strict with his colonies just to get revenue from his people and the Navigation Acts put some restriction too because they could only trade with England.
A new era was dawning on the American colonies and its mother country Britain, an era of revolution. The American colonists were subjected to many cruel acts of the British Parliament in order to benefit England itself. These British policies were forcing the Americans to rebellious feelings as their rights were constantly being violated by the British Crown. The colonies wanted to have an independent government and economy so they could create their own laws and stipulations. The British imperial policies affected the colonies economic, political, and geographic situation which intensified colonists’ resistance to British rule and intensified commitment to their republican values.
The colonies experienced much freedom due to Britain’s policy of Salutary Neglect. Britain’s policy of salutary neglect played a huge role in the development of the American colonies. Although the colonies were British settlements, Britain did not force their rules and beliefs onto them. The lack of strong British rule allowed the colonies to have a say in what type of nation they wished to become. Salutary Neglect enabled the colonies to develop religious freedoms, legislative assemblies, such as the House of Burgesses, and improved the American commerce by allowing the colonies to violate trading laws such as the Navigation Act.
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...
The colonies became a go-to market for the England’s manufacture goods and a steady supplier of raw materials. England applied mercantilism to its colonies by passing strict laws, such as the Navigation Acts, to limit trade with foreign countries and to tax all goods. The West Indies mainly relied on exporting sugar for profit, and more often than not, the English trade restrictions prevented the colonists of the West Indies from maximizing profit. Thus, they frequently snuck around to trade with the French and Spanish. The Navigation Acts had a significant impact on the self sufficiency of the colonies. The colonists began to build their own ships and also made iron, silk, and lumber for themselves. This somewhat economic autonomy would become crucial as the colonists later defy English restrictions and would be a key in sustaining the early United
In a similar economic revolution, the colonies out grew their mercantile relationship with England and developed their own expanding capitalist system. The idea of a set amount of wealth in the world and that if one were to become wealthy, he or she had to take from someone who is already wealthy, is basically what mercantilism means.
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...
Economic concerns of the British caused the colonization of British North America. Such economic concerns included the opportunity to acquire gold, silver, a North American waterway that would lead directly to China and the Indies, and the prospect of countering Spain's dominance in North America (Boorstin et al. 34). In addition to these economic reasons for colonization, the English were also seeking to obtain the essential "raw materials" in America that they had been previously buying from other European countries for exorbitant amounts of money and gold (Boorstin et al. 34). Great Britain also sought to solve other economic problems through American colonization. For example, England needed to replenish some of its diminishing materials and assets, generate another "market" to export its cargo and merchandise, maintain its powerful navy and "merchant marine" through business with new American colonies, and to provide a new place for the unemployed to settle rather than escalating populace/crime and the economic burden in its own cities (Boorstin et al. 34).