9.17.18
Mr Singerline
Mercantilism-
is an economic theory
Key elements in theory of Mercantilism
*your country builds power by building wealth (gold & silver)
*we get gold and silver through trade
Definition from last night’s homework
an economic theory
that a nation’s power has to do with that nation’s wealth. wealth could include the nation’s stock in gold and silver. the best way to stay powerful was to have a good favorable balance of trade
Mercantilists held that a nation’s power was a product of wealth, and a nation’s wealth was ensured by its stock of gold and silver.
we get them from a favorable balance of trade
A system of trade where a country has a favorable balance of trade.
if English are buying French fashions, the gold is going to France, which hurts England’s balance of trade, which equals loss of power.
Hip Hughes video on Mercantilism
Mercantilism or triangular trade
Imperialism and slave trade
triangular trade was among Americas, Europe, Africa, for trade
the triangle:
- slaves coming from Africa to colonies
- to trade for raw materials in colonies,
- which are shipped to Europe to manufacture-to make $$
- go back to Africa, buy slaves and keep the system going
Europe making the money off Africa and colonies
Colonialism Explained another Hip Hughes video
Why did Europeans leave Europe for colonies?
Ike and Tina Turner example-Ike controlled Tina-Tina had the talent, Ike controlled things (greed power)
analogy- Ike=Great Britain controlling colonies
Tina= colonies full of natural talent, resources, being controlled by King (Ike)
power relationship between colonies created by Great Britain and controlled by Great Britain and one day want control
Long term reasons for
m&m concept-once you have something (taste of chocolate) it creates the want of more
taste of self government created a want for more
as we saw in Soviet Union,
what makes the colonists, who live with mercantilism for years want freedom?
House of Burgesses (representatives in North America-that gave them the ability to discuss their governance) gave colonists some control of their property, giving them some taste of self control one m&m
Mayflower Compact-signed by Pilgrims on Mayflower in 1620, it represents the idea that they have some control in their decisions (self control) another m&m
What’s the policy?
mercantilism
Navigation Acts-many of them, to support Mercantilism
(mercantilism supported by the Navigation Acts)
What’s the reality?
colonies are there to serve the mother country-as long as the mother country benefits that’s great-if the colonists get something from it, that’s ok, too
How did the two interact?
history timeline of salutary neglect handout
what makes the colonists, who live with mercantilism for years want freedom?
Salutary neglect –the rules are not always being enforced, which can be good for the colonists
healthful neglect-we know they’re not doing mercantilism at all times
the rules are not being followed at all times-so, if there are ways to get around the rules, the colonists are going to do that-they started trading with the French in Quebec, and the Dutch in NY, getting better deals
(sometimes breaking the rules looks like a good deal)
Does the reality look like the theory?
British think that Mercantilism is in effect
colonists know that the policy does not look like the theory
SO-IF WE HAVE THE THEORY OF MERCANTILSM, WITH THE REALITY OF SALUTARY NEGLECT, HOW DO THEY GO TOGETHER?
the British want to know where all their tax money is going
Handout
History Timeline of Salutary Neglect
all the entries are relevant to mercantilism or salutary neglect
Navigation Acts go back to 1651, and still making them in 1733
1651, 1663, rules being passed
1673 more rules being passed
1675 Lords of Trade, officials designated to enforce the system (they already recognize that the rules aren’t being enforced)
1675 Bacon’s Rebellion-another example of breaking the rules
1677-Cupleper rebels against Colonial Government and Navigation Acts-not a good time to be in Virginia-
1688-start of French and Indian Wars between France and Great Britain