Was the mercantilist relationship between Britain and her American colonies from 1651 Until the revolution, overall, beneficial or detrimental to the economic interests of the American colonies?
In the late 1600’s mercantilism was created to consolidate the power between states as far as trading of goods. The mercantile was a policy and theory where the government was in control of all trade, in boundaries and foreign. This was to control and maintain an even balance between countries. The policies were to also maintain the balance of gold, and silver. Also this policy forbid them to trade with other nations, forbidding trade to be shipped in foreign vessels, and not allowing domestic consumption with non-tariff barriers.
(The good side of mercantile policy)
1. This mercantilism policy was profitable for both parties. 2. This policy made sure that nothing was shipped in foreign ships. 3. It provided capital for new industries.
4. These new industries were exempt from rules and taxes. 5. And they were granted titles and pensions to successful producers. (The bad side of mercantile policy)
1. It causes a reallocation of jobs amongst industries.
2. Imports reduces domestic employment.
3. Puts the domestic jobs at risk.
The mercantile policy was not good for the colonies because it caused a lot of differences between countries due to the exporting of goods. Since the mercantile policy we are a rapidly developing country. We have investment opportunities at home at the expense of the foreigners.
Allen, William r. “mercantilism” in john eaterwell Murray Milgate and Peter Newton, ds, the New Palgrave” a dictionary of economics” vol. 3 London: Macmillan, 1987.pp.445-448. Ekelund, Robert B. Jr., and Robert D. Tollison Monarchy monopoly and mercantilism 1981. Pp.127-136