mercantilism and colonial economics: was it all bad? (get out your clickers! ch 48)

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 = YES2 = 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 = YES2 = 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

What went wrong?

For over 150 years, colonists OK with

mercantilism

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 = YES2 = NO

DBQ/FRQ QuestionTo 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!