Mercantilism Essay -- essays research papers

Mercantilism is an economic theory where a nation's strength comes from building up gold supplies and expanding its trade. Britain formed the American colonies so that they could increase their gold stores. They wanted raw supplies to make into products to sell and make money. They wanted America to pay taxes so that Britain could make money. America used the theory in that they thought they ought to, in order to be strong expand their trade beyond Britain. Countries like Belgium, and France wanted to also increase their trade, and expand it to trading with America. They also wanted to increase their gold stores by trading with America. Britain however did not want America to trade with France and Belgium and the Netherlands because they wanted to increase their gold stores, so they needed a monopoly over American trade. So there was tension between Britain and its American colonies. One of the first efforts made by Britain to control the American colonies was the Acts of Trade and N avigation. What these acts did was limited American trade to basically just Britain. These Acts were in place between 1650-1660 and they were there to ensure that the mercantile system that existed stayed. It was mainly to prevent the Frenchmen and Dutch from receiving American goods. The acts limited American shipping to be via Britain. The British had to receive all American goods and them their merchants would sell the goods to other countries, but America could not. Any goods that were to be imported to the colonies had to be passed through British middlemen, where a tax was added so that Britain would profit. America was also forbidden to produce goods or grow crops for profit. If they were to do that then they would be competing with British industries. The colonies were supposed to also buy more than they sold, so that their currency was drained, but all to Britain. Before 1663, when the Acts of Trade and Navigation were not enforced the colonists benefited from Britain. The colonists of the north smuggled goods and manufactured items for profit. They avoided the British laws. The southern colonists had a guaranteed market from the British because they had a monopoly. The colonies also benefited because they had the British army troops to guard them, and they have low taxes, and the British navy shielded them. The colonists were generally more prosperous than the English... ...000 troops. The colonists by this time were no the happiest of campers and when the Quebec Act was passed the colonists had had almost enough. What this act did was to close off the Western lands, the British gave religious freedom to the Catholics, and the Massachusetts Protestants were anti-Catholic. The act also allowed the French to retain systems where there were no representative assemblies, and where there were no jury trials, as a result of this fear was installed into the colonists. Through all of this we knew that in mercantilism our strength was being depleted by Britain, so there was an action, leading to a reaction, later leading to synthesis, or another action. This continued on and on, getting more and more violent until the American Revolution broke out. America was becoming increasingly patriotic, a nationalist "country". This American Revolution that was to result was one of "national self-determination" being that we can. We think we can, an d in ourselves as a nation we can stand alone, free of Britain. We determined this by a series of occurrences that all resulted, through our mercantilist ideas and thoughts, eventually in us being America.