patriots drink whiskey
TRANSCRIPT
PATRIOTS DRINK PATRIOTS DRINK WHISKEYWHISKEYA look at economic protests against the English
An economic mystery
1769 was an confusing time to be aliveWhen tailored, comfortable pants were available, people wore itchy wool pants that never fit properlyPaint was available and no one painted their houses, no matter how much they needed itInstead of tea, people drank a mixture of herbs in water that tasted like death and gave you horrible pit-stains
Yet the people were happy and, in fact, more friendly with their neighbors than ever before. Why?
A quick guide to economics
1. People choose2. People’s choices involve costs3. People respond to incentives in
predictable ways4. People create economic systems that
influence individual choices and incentives
5. People gain when they trade voluntarily6. People’s choices have consequences
that lie in the future
A new autopsy for Elvis!
People choose People’s choices
involve costs People respond to
incentives in predictable ways
People create economic systems that influence individual choices and incentives
People gain when they trade voluntarily
People’s choices have consequences that lie in the future
Historical background
1767 – Parliament passes the Townshend Act Taxes on glass,
lead, paper, paint, tea
Colonists make a choice Start signing Non-
Importation Agreements
The costs of the colonists’ choice Colonial merchants
cut off imports from England What to do with
demand? Are there any
alternatives? What is the cost of
the colonists’ choice?
Pretend you’re colonists. Come up with possible alternatives to bringing in new supplies of … Paint Rum Tea Cloth Sugar Manufactured goods
(clocks, furniture, carriages)
Incentives and disincentives
Newspapers provide incentives to fall in line Report merchants
who violate the agreements
Common people provide “incentives” for each other What are the costs of
going against the agreements?
What are the benefits of going with the agreements?
Rules of the game – economic system
Overseas trade Navigation Acts: trade with
England or no one Sugar Act: smuggle and
you’re in trouble Trade in America
Local merchants provide for the towns
Newspapers watch for folks breaking the boycott
Private citizens keep watch
Why not trade?
People gain when they trade. So why wouldn’t we?
How do these choices influence trade and exchanges?
Consequences of our choice
England knuckles under How are colonists going to
respond to their victory? How are the English going to
respond to their defeat? Political consequences
What consequences are there for all the colonies working together?
What consequences are there for all classes, races, and genders working together?
Economic consequences What consequences are there
for Americans manufacturing things on their own?