THE COLONIAL ECONOMY

Our project is about the colonial economy, formally known as Mercantilism. This system is how trade flowed from one country to the next. 

 Mercantilism is the idea that in order for a country to have economic growth they need to export more than they import. The British government started this idea in the 16th century when they were deciding how to treat America. Since they still had the most control over the world economically they passed laws and regulations exclusively benefiting England. 

A way they really did this was by regulating manufacturing in the United states by having them sell the raw goods to Brittain and then have to buy the manufactured products BACK from them. This meant that America couldn't compete with Brittan in the manufactured goods sector which meant Brittan had a more economic advantage. 

In order to further their benefits, Brittain passed the Navigation Acts in 1651 to ensure that the Mercantilism system really benefited their economy. The colonists did not agree with this at all and they often complained. While both sides experienced friction with each other they never really came to a real conflict.

Once Brittan realized that passing all these laws to make sure the colonies wouldn't develop and prosper didn't win them any allies they passed the Salutary Neglect Policy because Frace was becoming more interested in exploring the new world. With this new policy, the Brittish stopped enforcing the restrictive laws as harshly on the colonies. 

With all this back and forth and the new incorporation of Africa and the West Indies, the Triangular Trade was born. Mercantilism and the triangular trade proved quite profitable for New England tradesmen and ship builders. But in the Southern Colonies, where the Navigation Acts vastly lowered tobacco prices, economies suffered. 

 There were 3 main "triangular routes", the most referenced is the one in the image below:

This heavily increased the slave population but VASTLY increased the profit margins for the businesses that profited off of the forced labor. With the sudden growth of wealth, it produced a group of elitists that were able to take control of the government and influence laws that would affect their trade. 

In the end, the triangle trade was an evil necessity for the development of our current economy and world trade.

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Vocabulary (Anna)

Raw goods: matèries primeres

Smuggling: tràfic 

Friction: desavinença

Salutary: beneficiós

Trade: commerç

Clash: enfrontament