Mercantilism
Mercantilism is an economic policy in which colonies support its mother country. The mother country (Britain), would take, or buy at a very low price, the colonies raw materials then forced them to buy it back the finished product at a very high and unfair price. This economic policy was very popular during this time period and kept Britain's economy stable. During this time of Mercantilism, the British put limits and taxes on trade for the colonies. The British put limits on what finished goods the colonies could produce, whose/what ships they could use and who they can trade with. The British put taxes on the imported goods into the colonies. A lot of these goods were goods that they sold to the colonies at an already high price. The distance from Great Britain benefited the colonies because during a time of "Salutary Neglect" the colonies could get away with smuggling. Salutary Neglect was an approach Britain took with the colonies since it cost a lot of money to send troops to the colonies to enforce the laws parliament had made. In 1763, the British began enforcing the trade laws and also passed new trading laws. The Navigation Acts and the Sugar Act were meant to stop the colonists from smuggling. Colonists, especially in New England, began rebellious behaviors by smuggling imports and exports. To smuggle these goods they would pay bribes to British custom officials who were meant to be regulating trade. These British custom officials were getting a good amount of money from the British as a salary and the bribes so they were not about to go broke. When the smugglers were caught they were rarely found guilty when tried. 700,000 British pounds were made by the colonies each year at this time of smuggling. After a couple years the British offered to still regulate trade but the colonists would be able to levy their own taxes. The colonists accepted but, after the French and Indian War was over British started to levy taxes again to help pay for the war and because they claimed that they protected the colonists against war even though in some cases the colonists had to fight.
Mercantilism is an economic policy in which colonies support its mother country. The mother country (Britain), would take, or buy at a very low price, the colonies raw materials then forced them to buy it back the finished product at a very high and unfair price. This economic policy was very popular during this time period and kept Britain's economy stable. During this time of Mercantilism, the British put limits and taxes on trade for the colonies. The British put limits on what finished goods the colonies could produce, whose/what ships they could use and who they can trade with. The British put taxes on the imported goods into the colonies. A lot of these goods were goods that they sold to the colonies at an already high price. The distance from Great Britain benefited the colonies because during a time of "Salutary Neglect" the colonies could get away with smuggling. Salutary Neglect was an approach Britain took with the colonies since it cost a lot of money to send troops to the colonies to enforce the laws parliament had made. In 1763, the British began enforcing the trade laws and also passed new trading laws. The Navigation Acts and the Sugar Act were meant to stop the colonists from smuggling. Colonists, especially in New England, began rebellious behaviors by smuggling imports and exports. To smuggle these goods they would pay bribes to British custom officials who were meant to be regulating trade. These British custom officials were getting a good amount of money from the British as a salary and the bribes so they were not about to go broke. When the smugglers were caught they were rarely found guilty when tried. 700,000 British pounds were made by the colonies each year at this time of smuggling. After a couple years the British offered to still regulate trade but the colonists would be able to levy their own taxes. The colonists accepted but, after the French and Indian War was over British started to levy taxes again to help pay for the war and because they claimed that they protected the colonists against war even though in some cases the colonists had to fight.
- "Causes of the American Revolution." Smore. N.p., 29 Sept. 2014. Web. 20 Jan. 2015.
- "Mercantilism." Ushistory.org. Independence Hall Association, n.d. Web. 19 Jan. 2015.
- "Chapter 3 - The English Colonies in North America." Flashcards. N.p., n.d. Web. 20 Jan. 2015.