The Atlantic The Atlantic EconomyEconomy

Mercantilism and colonial warsMercantilism and colonial wars

Mercantilism – system of economic Mercantilism – system of economic regulations aimed at increasing the regulations aimed at increasing the power of the state by creating a power of the state by creating a favorable balance of trade. favorable balance of trade.

English mercantilism characterized English mercantilism characterized by the use of government by the use of government regulations to serve the interests regulations to serve the interests of private individuals. of private individuals.

The Navigation Acts were a form of The Navigation Acts were a form of economic warfare. economic warfare.

– 1. They required that most goods 1. They required that most goods exported to England be carried on exported to England be carried on British ships. British ships.

– 2. These acts gave England a 2. These acts gave England a virtual trade monopoly with its virtual trade monopoly with its colonies.colonies.

The French quest for power in Europe The French quest for power in Europe and North America led to international and North America led to international wars. wars. – 1. The loss of the War of the Spanish 1. The loss of the War of the Spanish

Succession forced France to cede parts of Succession forced France to cede parts of Canada to Britain. Canada to Britain.

– 2. Maria Theresa of Austria sought to crush 2. Maria Theresa of Austria sought to crush Prussia--this led to the Seven Years' War. Prussia--this led to the Seven Years' War.

– 3. New France under Montcalm was finally 3. New France under Montcalm was finally defeated by British forces at Quebec in defeated by British forces at Quebec in 1759. 1759.

– 4. The Seven Years' War (1756-1763) was 4. The Seven Years' War (1756-1763) was the decisive struggle in the French / British the decisive struggle in the French / British competition for colonial empire; France competition for colonial empire; France ended up losing its North American ended up losing its North American possessions.possessions.

Land and labor in British AmericaLand and labor in British America Colonies helped relieve European Colonies helped relieve European

poverty and surplus population as poverty and surplus population as settlers eagerly took up farming on the settlers eagerly took up farming on the virtually free land. virtually free land.

– 1. The availability of land made labor 1. The availability of land made labor expensive in the colonies. expensive in the colonies.

– 2. Cheap land and scarce labor were 2. Cheap land and scarce labor were critical factors in the growth of slavery.critical factors in the growth of slavery.

The Spanish, Portuguese, and Dutch The Spanish, Portuguese, and Dutch introduced slavery into the Americas in introduced slavery into the Americas in the sixteenth century. the sixteenth century.

– 1. The Dutch transported thousands 1. The Dutch transported thousands of Africans to Brazil and the of Africans to Brazil and the Caribbean to work on sugar Caribbean to work on sugar plantations. plantations.

– 2. British adoption of slavery in North 2. British adoption of slavery in North America created a new class of rich America created a new class of rich plantation owners.plantation owners.

The Atlantic slave tradeThe Atlantic slave trade The forced migration of millions of The forced migration of millions of

Africans was a key element in European Africans was a key element in European economic expansion. economic expansion.

Before 1700 slaves were largely Before 1700 slaves were largely captives taken in battles between captives taken in battles between Africans or were Africans who Africans or were Africans who committed crimes. committed crimes.

– African slaves were seldom sold in Europe; African slaves were seldom sold in Europe; runaways merged into London's population. runaways merged into London's population.

– In Britain, slave status was limited by law in In Britain, slave status was limited by law in 1772; the slave trade was abolished in 1772; the slave trade was abolished in 1808.1808.

9.5 Million slaves taken from Africa 9.5 Million slaves taken from Africa (1450-1870)(1450-1870)

– Caribbean Islands 40%Caribbean Islands 40%– Portugese Brazil 38%Portugese Brazil 38%– Spanish America 16%Spanish America 16%– British N. America 4%British N. America 4%– Europe / Asia 2%Europe / Asia 2%

The English mercantilist system The English mercantilist system benefited American colonists. benefited American colonists.

– 1. They exported food to the West 1. They exported food to the West Indies to feed the slaves and sugar Indies to feed the slaves and sugar and tobacco to Britain. and tobacco to Britain.

– 2. The American shipping industry 2. The American shipping industry grew.grew.

The population of the North American The population of the North American colonies grew very quickly during the colonies grew very quickly during the eighteenth century, and the eighteenth century, and the standards of living were fairly high. standards of living were fairly high.

The growth of foreign trade: The growth of foreign trade:

– 1. Trade with the English colonists 1. Trade with the English colonists compensated for a decline in compensated for a decline in British trade on the Continent. British trade on the Continent.

– 2. The colonies also encouraged 2. The colonies also encouraged industrial growth in Britain.industrial growth in Britain.

Revival in colonial Latin AmericaRevival in colonial Latin America

Spain's political revitalization was Spain's political revitalization was matched by economic improvement matched by economic improvement in its colonies. in its colonies.

– 1. Philip V brought new leadership; 1. Philip V brought new leadership; Spain acquired Louisiana in 1763. Spain acquired Louisiana in 1763.

– 2. Silver mining recovered in 2. Silver mining recovered in Mexico and Peru. Mexico and Peru.

– 3. Trade grew, though industry 3. Trade grew, though industry remained weak.remained weak.

In much of Latin America, Creole In much of Latin America, Creole landowners dominated the economy landowners dominated the economy and the Indian population by means of and the Indian population by means of debt peonage. debt peonage.

Compared to North America, racial Compared to North America, racial mixing was more frequent in Spanish mixing was more frequent in Spanish America.America.– PeninsularesPeninsulares– CreolesCreoles– MestizosMestizos– Mulattos Mulattos

Adam SmithAdam Smith Smith spoke against mercantilist policies Smith spoke against mercantilist policies

of the 1700s. He believed in free trade of the 1700s. He believed in free trade and competition. Did not like the gov’t. and competition. Did not like the gov’t. regulations and unfair priveleges given to regulations and unfair priveleges given to monopolies.monopolies.

Wealth of NationsWealth of Nations (1776) is the classic (1776) is the classic argument for unregulated capitalismargument for unregulated capitalism

Smith believed gov’t. had 3 duties:Smith believed gov’t. had 3 duties:– 1. provide defense against invasion1. provide defense against invasion– 2. maintain civil order2. maintain civil order– 3. Sponsor public works3. Sponsor public works