Colonialism, Mercantilism,

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Colonialism, Mercantilism, Labor Systems

• 1450-1750 Lesson 5

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Main Ideas

• Each country establishes colonies for unique
  reasons, but colonies serve standard purposes
• New systems of labor are developed to accommodate
  colonial goals
• A new economic system is developed based on
  colonialism and a new global trade market

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Colonialism

• Political control for economic benefits
• Colonies are established for three reasons
• Provide raw materials for the mother country
• Serve as a market for manufactures
• Provide an outlet for excess population

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Colonial Policy

• The Mother Country
• Maintains colonies as long as they supply
  resources
• MUST keep colonies dependent (politically
  economically)
• National variations
• SPAIN--all decisions made by king
• FRANCE--colonies paid astronomical taxes
• ENGLANDsalutary neglect

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Coercive Labor Practices

• Spanish mita system, slave trade
• Encomienda System (ESP) landlords granted
  haciendas rights to land, resources, labor of
  inhabitants
• Variations in Slavery
• Caribbean/Brazil rapid turnovermore cost
  effective to buy new ones
• North America est. much laterend of slave
  trade forces maintenance

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Mercantilism

• Economic philosophy that promotes commercialism
  using colonial raw materials European
  manufacturing
• Necessary factors
• Colonial possessions
• Ability to manufacture goods
• Currency based on gold silver

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Mercantilist Policies

• Wealth based on bullion (gold silver)

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Mercantilist Policies

• Favorable Balance of Trade sell to other
  countries (for gold), but dont buy from them

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Mercantilist Policies

• Become self-sufficient--colonies help this by
  providing raw materials without foreign trade a
  market to sell goods
• The Trans-Atlantic Trade System (Triangular Trade)

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Trans-Atlantic Trade, 1492-1800
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Problems

• Depends on raw materials from colonies
• Encourages limiting trade
• MOST IMPORTANT!--hoarding gold causes terrible
  inflation (prices in Spain rose 120 in 1500s)

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Conclusions

• Mercantilism drives quest for colonies
  (interaction, but negative)
• Colonial policies gradually alienate colonies
  from mother countries
• Development of new cultures based on syncretism