1.2 British mercantilist policies and their impact

British mercantilism shaped colonial America's economy from the 16th to 18th centuries. This system aimed to boost England's wealth through trade surpluses, viewing international commerce as a zero-sum game where one nation's gain meant another's loss.

The British enforced strict policies like the Navigation Acts to control colonial trade. While these rules stimulated some industries, they also restricted manufacturing and trade opportunities, sparking colonial resentment and resistance that would contribute to the American Revolution.

Understanding British Mercantilism

Definition of mercantilism

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• Economic theory dominated Europe 16th-18th centuries emphasized wealth accumulation through trade surpluses
• Core principles viewed wealth as finite, measured in precious metals (gold, silver)
• International trade seen as zero-sum game where one nation's gain meant another's loss
• Key goals focused on maximizing exports, minimizing imports to maintain favorable trade balance
• Government played central role regulating economy, protecting domestic industries, encouraging colonization for raw materials and new markets

British mercantilist policies

• Navigation Acts (1651-1663) required colonial trade use English ships, certain goods ship to England first, restricted colonial manufacturing
• Staple Act (1663) mandated European goods pass through English ports before reaching colonies
• Molasses Act (1733) imposed high tariffs on non-British sugar and molasses to protect British West Indies
• Hat Act (1732) prohibited export of colonial-made hats to protect British hat industry
• Iron Act (1750) restricted colonial iron production to raw pig iron and bar iron, limiting finished goods
• Currency Acts (1751, 1764) regulated colonial paper money to maintain British economic control

Impact and Response to British Mercantilism

Impact on colonial economy

• Positive effects stimulated shipbuilding industry, encouraged naval stores development (tar, pitch, timber)
• Negative effects restricted manufacturing growth, limited trade opportunities, increased costs for imports
• Created economic dependence on Britain as raw material source and manufactured goods supplier
• Smuggling and illicit trade emerged in response to restrictions (triangular trade routes)
• Stimulated some industries (shipbuilding, lumber) while hindering others (textiles, iron goods)

Colonial response to mercantilism

• Initial compliance and benefits saw some colonies prosper under protected trade (tobacco, rice)
• Growing resentment fueled by frustration with economic restrictions and perceived unfair treatment
• Resistance manifested through non-importation agreements, boycotts of British goods (tea, textiles)
• Political responses included petitions to British Parliament, formation of Committees of Correspondence
• Intellectual challenges emerged with new economic theories influenced by Enlightenment ideas (Adam Smith)
• Economic grievances became catalyst for political discontent, cited in Declaration of Independence