Economic Issues of the Colonies

1607-1650’s

England paid little attention to colonists

“Salutary Neglect” - let the colonies develop without over regulation

Left alone in most ways

This situation was mutually beneficial

Colonies increased England’s Wealth

Two Reasons for prosperity:1 Colonies were suppliers of raw

materialsSuch as tobacco, rice and lumber

2 Colonies were avid buyers of English goodsThis new type of economic activity was called mercantilism

Mercantilism System

Colonies send raw materials to EnglandEngland turns out finished productsProducts sold back to colonies and othersWood Products

Huge Profits for EnglandColonists not encouraged to manufacture - except for shipbuilding

Mercantilism

A parent nation needs a favorable balance of tradeExports > Imports

England would not have to purchase raw materials from someone else

Their goal of self-sufficiency was attained

Problems of Mercantilism

Colonists couldn’t sell raw materials to other nations They weren’t allowed to, by England

Colonists not allowed to buy goods from other nations

Colonists disobeyed these orders many times - This required England to have better supervision - Hard to do 3,000 miles away

Navigation Acts of 1660’s

These Acts were put into place to try and force the colonies to abide by England’s rule

They were weakly enforced for over 100 years

Navigation Acts of 1660’s

All trade in colonies restricted to British ShipsCertain products could only be sold to England - tobacco or cottonDuties (taxes) imposed on trade between coloniesTrade with other countries must first go through England

Navigation Acts (Cont’d)

New England was not following Acts

1696: England tightens up control: Sworn to uphold Navigation Acts More Customs officials - decrease

smuggling Smugglers tried by England