Colonialism, Mercantilism, Colonialism, Mercantilism, & Labor Systems& Labor Systems

1450-1750 Lesson 51450-1750 Lesson 5

Main Ideas:Main Ideas:• Each country establishes colonies for Each country establishes colonies for

unique reasons, but colonies serve unique reasons, but colonies serve standard purposesstandard purposes

• New systems of labor are developed to New systems of labor are developed to accommodate colonial goalsaccommodate colonial goals

• A new economic system is developed A new economic system is developed based on colonialism and a new global based on colonialism and a new global trade markettrade market

ColonialismColonialism• Political control for Political control for

economic benefitseconomic benefits• Colonies are established Colonies are established

for three reasons:for three reasons:– Provide raw materials Provide raw materials

for the mother countryfor the mother country– Serve as a market for Serve as a market for

manufacturesmanufactures– Provide an outlet for Provide an outlet for

excess populationexcess population

Colonial PolicyColonial Policy• The “Mother Country”:The “Mother Country”:

– Maintains colonies as long as Maintains colonies as long as they supply resourcesthey supply resources

– MUSTMUST keep colonies dependent keep colonies dependent (politically & economically)(politically & economically)

• National variations:National variations:– SPAIN--SPAIN--allall decisions made by decisions made by

king king – FRANCE--colonies paid FRANCE--colonies paid

astronomical taxesastronomical taxes– ENGLAND—salutary neglectENGLAND—salutary neglect

Coercive Labor PracticesCoercive Labor Practices• Spanish Spanish mitamita system, slave trade system, slave trade• Encomienda System Encomienda System (ESP):(ESP):

landlords granted landlords granted haciendashaciendas; rights ; rights to land, resources, & labor of to land, resources, & labor of inhabitantsinhabitants

• Variations in Slavery:Variations in Slavery:– Caribbean/Brazil:Caribbean/Brazil: rapid turnover— rapid turnover—

more cost effective to “buy new ones”more cost effective to “buy new ones”– North America:North America: est. much later—end est. much later—end

of slave trade forces maintenanceof slave trade forces maintenance

MercantilismMercantilism• Economic philosophy Economic philosophy

that promotes that promotes commercialism using commercialism using colonial raw materials colonial raw materials & European & European manufacturingmanufacturing

• Necessary factors:Necessary factors:– Colonial possessionsColonial possessions

– Ability to manufacture Ability to manufacture goodsgoods

– Currency based on gold Currency based on gold & silver& silver

Mercantilist PoliciesMercantilist Policies

• Wealth based on bullion (gold & Wealth based on bullion (gold & silver)silver)

Mercantilist PoliciesMercantilist Policies

• Favorable Balance of TradeFavorable Balance of Trade: sell : sell to other countries (for gold), but to other countries (for gold), but don’t buy from themdon’t buy from them

Mercantilist PoliciesMercantilist Policies• Become self-Become self-

sufficient--colonies sufficient--colonies help this by help this by providing raw providing raw materials without materials without foreign trade & a foreign trade & a market to sell goodsmarket to sell goods

• The Trans-Atlantic The Trans-Atlantic Trade System Trade System (Triangular Trade)(Triangular Trade)

Trans-Atlantic Trade, 1492-1800Trans-Atlantic Trade, 1492-1800

ProblemsProblems• Depends on raw Depends on raw

materials from coloniesmaterials from colonies

• Encourages limiting tradeEncourages limiting trade

• MOST IMPORTANT!--MOST IMPORTANT!--hoarding gold causes hoarding gold causes terrible inflation (prices terrible inflation (prices in Spain rose 120% in in Spain rose 120% in 1500’s)1500’s)

ConclusionsConclusions• Mercantilism drives quest Mercantilism drives quest

for colonies (interaction, for colonies (interaction, but negative)but negative)

• Colonial policies Colonial policies gradually alienate gradually alienate colonies from mother colonies from mother countriescountries

• Development of new Development of new cultures based on cultures based on syncretismsyncretism