Economics of American ColoniesUS History Standards:

SSUSH2 The student will trace the ways that the economy and society of British North America developed. a. Explain the development of mercantilism and the trans-Atlantic trade.

Mercantilism The theory that a country should have as much

gold or silver as possible – the best way for England to obtain this was through trade

Balance of trade was important – a country should have more than exports than imports to achieve a good balance of trade

England wanted to get as many raw materials as possible from its colonies so they didn’t have to buy them elsewhere

Colonists were not allowed trade with other nations to ensure they bought English goods only

Created competition between the European countries

Navigation Act (1660)Colonies could only sell certain goods,

including sugar, tobacco, and cotton, only to England

To sell to other parts of the world, colonies had to take the crop or product to England first and pay a duty (a tax)

Colonists had to use English ships for all their trade

The colonists greatly resented King James II’s grab for power

Rebellion against the Navigation Acts

Many colonists refused to follow the Navigation Acts and smuggled goods to and from other countries

It was ignored for many years, but in 1684 King Charles II punished those he believed most responsible for the resistance – the leaders and merchants of Massachusetts

The King revoked the colony’s charter – the once “Puritan utopia” became a royal colony, under strict control of the crown

The King and his successor, James II, worked to consolidate their powers over New England

The Glorious Revolution in 1689 overthrew the King and the colonists quickly moved to arrest all of the King’s representatives in New England

the Massachusetts charter was restored, but the king was able to appoint the governor and he required more religious toleration

Colonial Self Government Outside of economic policy, the colonies had a great

deal of self-rule Each colony had a colonial legislature. Their duties

included the passage of laws regarding defense and taxation, setting the salaries of royal officials, local appointments

England allowed this because they had a long tradition of strong local government. Most colonists recognized the power of the King and were proud British subjects. The economic and political policies of the colonies served British interests.

Colonial Wealth and WorkLand Wealth The real foundation of wealth was land, mostly

owned by white males although women and free African-Americans could own land, although few did

Each small group of landowning, elite white males dominated the politics of each colony – they held the majority of the seats in the lawmaking bodies

This group generally flaunted the wealth with elaborate homes filled with fine furnishings. The valued education and read as many things from England as they could.

Trades and Occupations Artisans – produced tinware, pottery,

glassware – boys generally became apprentices at young ages to learn the skill

Printers – printed newspapers and almanacs

Benjamin Franklin was a printer – Poor Richard’s Almanac

Farmers and Fishermen

Colonial WomenA woman’s status in the colonies

was determined by the men in their lives (usually their father or husband) – women were legally the dependents of men and had no legal or political standing

Women managed the household and assisted with childbirth