How did mercantilism effect the colonies?
Quick Answer
In reference to Colonial America, mercantilism was the idea that the colonies existed in order to benefit Great Britain. Under mercantilism the American colonists were essentially tenants of Britain. In exchange for the land on which they lived, they "paid rent" to Britain by sending almost all of their manufactured goods back to Britain. Virtually no trade existed directly between the colonies and other nations.
Continue ReadingFull Answer
According to the Library of Economics and Liberty, mercantilism grew out of the popular belief that there was a fixed amount of wealth in the world and that the primary way to increase a nation's wealth was to conquer other lands. In order to sustain its wealth base, Britain felt it was important to keep the goods and materials from the colonies to themselves. Thus, the colonists were not able to trade these materials to other countries and obtain any wealth for themselves. All of the profits went to Britain, and the colonists remained in relative poverty. If the colonists wished to trade with other nations, the items had to first be shipped to Britain and then to the other nations. This allowed Britain to collect the associated tax revenue.
Land and Freedom describes how mercantilist policies encouraged the colonists to specialize in the production of raw materials rather than the manufacture of goods. Regulations prohibited certain industries, such as the woolen-garment industry, since manufacturing these items would lead to export competition between the colonies and Britain.
Learn more about US HistoryRelated Questions
-
Q:
Why are there 13 stripes on the American flag?
A: The 13 stripes on the American flag represent the original 13 colonies that declared independence from Britain in 1776. The stars represent the number of s... Full Answer >Filed Under: -
Q:
What was the result of the French and Indian War?
A: As a result of the French and Indian War, Britain received Florida from Spain and Canada from France, while France maintained its West Indies colonies and ... Full Answer >Filed Under: -
Q:
What did the passage of the Townshend Acts cause the colonists to do?
A: The Townshend Acts, a number of laws imposed upon Britain's American colonists to impose taxes and extract revenue, met with overwhelming opposition in the... Full Answer >Filed Under: -
Q:
What were the Suffolk Resolves?
A: The Suffolk Resolves stated the intentions of the pre-Revolutionary War colonists to form their own military, refused to pay British taxes, cut off trade t... Full Answer >Filed Under:
