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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!