The Colonial Economy

Mercantilism and Trianglar Trade

Mercantilism  -- Economic theory implemented by England.  According to this theory, a nation attempts to become wealthy & powerful by doing the following:

1.Obtain as much gold & silver as possible

2.Establish a favorable balance of trade / sell more than you buy

3.Become self-sufficient / don't depend on any other country

·The colonies were exporting large supplies of raw materials to England

·Colonials were good customers & bought a lot of English goods

·In order to control colonial trade, England passed the Navigation Acts

        (See page 68 in your textbook  the do's and don't of these laws)

·The implementation of this economic system led to England becoming the most 

       powerful nation on earth during this time!

Problems / Conflicts over English enforcement of the Navigation Acts

·Salutary Neglect  "looking the other way".. NO MORE!  p. 70 in text

Although Mercantilism and the Navigation Acts affected all the colonies, the Northern colonies are made up of more merchants and it affected them more than the Southern colonies!

...TRIANGULAR TRADE..

LABOR PROBLEMS IN COLONIAL AMERICA

1.Free Labor  supply & demand

2.Indentured Servants  consisted of 50-75% of all white colonist in the 1600's

3.Slave Labor  this was the alternative to the high cost of free labor

·Slave labor initiated by the Portuguese & Spanish in the late 1400's as an

      alternative to natives

·Who needs slaves more..why?  Econmics?  Geography?

·Middle Passage  name given to the trip across the Atlantic Ocean to the West Indes. 

Approx. 13  33% died on the trip.

·Seasoning  the process of "breaking in" the slaves while in the West Indes,

      before they were sold in the colonies.  Approx. 50% died here.