How Did Mercantilism Affect The Colonies Of Great Britain - Greatbritainmighty.com (2024)

How Did Mercantilism Affect The Colonies Of Great Britain?

Mercantilism was an economic system which sought to ensure a nation achieved economic dominance over its rivals. It was prominent in Great Britain during the seventeenth and eighteenth centuries and had a profound influence on the development of the British, or overseas, colonies. During that period the colonies had to follow strict regulations specifically designed to ensure the Mother Country always remained the most competitive, powerful and lucrative nation.

The mercantilist policies were designed to keep all wealth within Britain, which meant the colonists were expected to send only raw goods when trading with other countries. Furthermore, the colonies could not make goods to sell themselves and were instead expected to sell the goods only to the mother country. This led to a decreased level of economic independence in the colonies, but it did mean Great Britain was able to corner global markets and domineer the world trading system.

The mother country also increased taxes to the colonies in an attempt to gather even more wealth. This forced the American colonies to become more reliant on the Mother Country to bolster their economy. Great Britain additionally limited the colonies’ ability to trade with other countries, causing the colonists to become more dependent on Britain for all of their goods and services. This inability to trade externally had a substantial effect on the rate of development of the colonies, as it prevented them from forming more meaningful economic relationships and compelled them to invest in the root of the mother country.

This mercantilist policy had a detrimental effect on the colonies of Great Britain while benefiting the mother country at their expense. The colonies were confined to weak markets, underdeveloped secondary industries and an absence of extra-colonial trade. It is now generally accepted that this system not only inhibited the economic growth of the colonies, but was also a strong catalyst for the American Revolutionary War. Evidence suggests that many of the grievances the colonists had in the run up to the Revolutionary War were rooted in the severe mercantilist policies.

The Perpetual Debt Of Colonies

The British government relied on colonial trade to finance its debt. The more money the colonies raised, the less the mother country had to pay. The US was held to unrealistic standards and it’s revenues were not reinvested in the colonies. As a result, the US colonial debt was constantly rising and the debt was difficult to pay. This led to further borrowing and a great dissatisfaction among the colonists regarding this form of mercantilism.

The British maintained a tight grip on the colonies, which resulted in high taxes in the colonies. Taxes were imposed on everything ranging from basic necessities such as sugar, tea, and textiles to luxury items such as silver and velvet. This imposed predatory taxation on the colonies without there being any representation or democracy for the colonists. The colonists did not have any say in the taxes imposed and were thus powerless to oppose them.

The main purpose of mercantilism was to ensure British wealth and power, which meant the colonies had to sacrifice their own market potential. Mercantilism caused the colonies to be kept away from developing meaningful trading with other countries. The colonies were instead reliant upon the mother country for all their needs. This was detrimental to their economic development and also led to a sense of resentment among colonists due to the lack of representation in taxation.

Anti mercantilist Movement

The anti-mercantilist movement materialized in the earliest stages of the 18th century. The primary objective of this movement was to oppose the interests of the British government and seek out opportunities for the colonies to engage in trade with other countries. This became a major conflict point between Great Britain and her colonies, as mercantilism had become an essential part of the British Empire. The colonists began to resist the mercantilist policies due to its limited access to markets beyond the mother country as well as the oppressive taxation and the lack of political representation.

The anti-mercantilist movement was spearheaded by a group of American revolutionaries which included political and ideological leaders such as Thomas Paine, Benjamin Franklin, and Thomas Jefferson. One of the most prominent ideas of the movement was the concept of free trade, which would allow the colonies to engage with other countries without the constraints of the mercantilist policies. This was a major rallying point for the colonists and the free trade movement was one of the major contributing factors to the outbreak of the American Revolution.

The anti-mercantilist movement was instrumental in challenging the stranglehold that the mother country had on its overseas territories. While it did not actually lead to the abolition of mercantilism, it did put pressure on the British government and eventually led to changes in the way they interacted with the colonies. The anti-mercantilist movement ultimately laid the groundwork for the colonies to push for their independence and establish a new and more equitable relationship with Great Britain.

Financial Burden On The Colonists

The mercantilist policies of Great Britain placed an incredible financial burden on the colonies and had a direct impact on their economies and development. The restraint on trade caused the colonists to rely solely on Great Britain for goods and services, sinking their economy further and further into debt. Furthermore, increased taxes imposed by the mother country meant the colonists had no choice but to give up an ever-increasing proportion of their rightful wealth to the British Empire.

The mercantilist policies also caused an imbalance of power between the colonies and the mother country. The colonies were unable to pursue economic and political autonomy and were instead forced to rely on Great Britain for their basic needs. This led to a crisis of representation and ultimately resulted in a decreased quality of life and a weakened economy.

A key issue in the mercantilist system was the lack of investment in the colonies. This meant that the government was spending less and less money on public goods such as education, infrastructure and healthcare. This lack of investment further weakened the colonies and resulted in a general decrease in standard of living.

The mercantilist policies of Great Britain had a significant and detrimental effect on the colonies. The system was designed to ensure the mother country remained powerful and successful, but it ultimately led to decreased economic independence and a weakened economy in the colonies. This led to a sense of grievance among the colonists, which ultimately contributed to the outbreak of the American Revolutionary War.

Curtailed Freedom

The mercantilist laws of Great Britain also curtailed the political freedom of the colonies. One such law states that the colonies could not pass any legislation without prior approval from the mother country. As a result, the colonists were constantly impeded in their efforts to forge a path towards self determination. The colonies were subjected to an unequal balance of power, as they were not allowed to make plans for their own future without permission from Great Britain.

The mercantilist system also prevented the colonies from having a voice in their own political affairs. This meant the colonists were not allowed to pursue democratic processes or seek representation in Parliament. This was a major contributing factor to the discontent among the colonists as their rights to self determination were violated on a daily basis.

The economic policies of Great Britain had a huge impact on the colonies. The mercantilist policies which were imposed were designed to ensure British wealth and power, but had an incredibly detrimental effect on the economies of the colonies. The taxes imposed, the lack of extra-colonial trade, and the loss of autonomy all contributed to a sense of unrest among the colonists which ultimately led to the outbreak of the American Revolutionary War.

Economic downturn

The mercantilist policies of Great Britain were also responsible for an economic downturn in the colonies. The restrictive regulations and the government’s lack of investment meant the colonies could not pursue economic opportunities and instead had to rely on the mother country for goods and services. This had a direct effect on the economic output of the colonies, leading to stagnation in the growth of their economies.

Furthermore, the mercantilist policies also had a damaging effect on the production of finished goods in the colonies. Manufactories were prohibited from setting up operations in the colonies, leading to a decrease in production in the region. This meant that the colonies were unable to compete in the global market and their economies were weakened as a result.

Overall, the mercantilist policies of Great Britain had a negative and long-lasting impact on the colonies. The restrictions on trade, the oppressive taxation and the reduced level of autonomy in the colonies all contributed to a diminished quality of life and an economic slowdown in the colonies. The effects of mercantilism were an enduring contributing factor to the discontent among the colonists and ultimately led to the American Revolutionary War.

Political Loss Of Liberties

The mercantilist policies of Great Britain also led to a loss of political liberties in the colonies. The colonies were not allowed to pursue certain activities without the approval of the mother country and were not allowed to implement their own policies. This meant that the colonies were left in a weak position and were unable to develop their own individual political identities.

The mercantilist policies also meant that the mother country had a complete monopoly on the political process, allowing Britain to pass oppressive laws which infringed upon the rights of the colonists. This led to a lack of representation in the mother country and a decreased level of autonomy in the colonies. This was a major contributing factor to the discontent among the colonists and ultimately led to the American Revolutionary War.

Great Britain’s mercantilist policies had a profound influence on the development of the overseas colonies. These policies