Mercantilism and Colonial Economics: Was it all bad? (Get out your clickers! Ch 48) Our Goals (SWBAT): • Describe/Define basic economic concepts • Describe British Mercantilism • Analyze/Evaluate Impact of Mercantilism on British Colonies in North America Clicker Discussion: I am afraid of economics? 1 = YES 2 = NO Key Terms: • • • • Import Export Trade Balance Trade Deficit (Surplus) What is Mercantilism? • Theory of economic organization • Way to organize a nation’s economy • Goal: make Mother Country wealthy • Today? Capitalism, Communism Basic Ideas of Mercantilism • Establish colonies • Control/regulate trade • Export raw materials & resources from colony to Mother Country • Export finished products from MC to colony • Favorable Trade Balance for MC Basic Ideas of Mercantilism • Navigation Acts (1650s and 1660s) Attempts by Britain to control trade • Salutary Neglect Britain’s “hands off” approach helped colonies Until 1760s Clicker Discussion: Was Mercantilism GOOD for Colonies? 1 = YES 2 = NO Mercantilism: GOOD • Guaranteed markets • Protection from competition • Especially helpful when colonies young to limit risk • Raised prices for smugglers Why was Mercantilism BAD for Colonies? Mercantilism: BAD • Limited opportunities to trade • Industrial development restricted Certain UK industries protected • A bigger problem toward end of colonial period Colonies wealthier Colonial economies more diverse Mercantilism: BAD • Economics seen as “Zero Sum Game” • England $↑, Colonies $↓ • Colonies have trade deficit • Colonies lack species/money • Certain Industries in England protected For over 150 years, colonists OK with mercantilism What went wrong? What went wrong? • French & Indian War • Grenville’s Policies • Monopoly given to British East India Co. (Tea) • Fear of more restrictions, taxes Clicker Discussion: Was Mercantilism GOOD for Colonies? 1 = YES 2 = NO DBQ/FRQ Question To what extent was mercantilism bad for England’s colonies in America? How Did We Do? Our Goals (SWBAT): • Describe/Define basic economic concepts • Describe British Mercantilism • Analyze/Evaluate Impact of Mercantilism on British Colonies in North America 1 -------------------------------5 Not so good Excellent!