how were european economic systems in the american colonies in the 1500s and 1600s different from existing economic systems in europe?
How were European economic systems in the American colonies in the 1500s and 1600s different from existing economic systems in Europe?
Answer:
During the 1500s and 1600s, the economic systems in the American colonies and Europe were distinct in several ways.
Mercantilism: European economic systems in the American colonies were primarily based on mercantilism, which emphasized exporting more goods than importing to accumulate precious metals. This system aimed to increase the wealth and power of the mother country.
Colonial Economies: In the American colonies, economies were often structured around cash crops like tobacco, cotton, and sugar, which were grown for export to Europe. This export-oriented approach was different from the diversified economies in Europe.
Labor System: The American colonies heavily relied on forced labor, including African slaves and indentured servants, to work in plantations and mines. In contrast, Europe had a more varied labor system that included serfs, artisans, and merchants.
Trade Regulations: The economic systems in the American colonies were subjected to strict trade regulations imposed by the mother countries through acts like the Navigation Acts. These regulations limited colonial trade partners and forced them to trade mainly with the home country, while Europe had more diversified trade networks.
Infrastructure Development: European economic systems in Europe were often more developed in terms of infrastructure, banking systems, and urban centers. The American colonies were still in the process of establishing these economic structures during the 1500s and 1600s.
Overall, the European economic systems in the American colonies during the 1500s and 1600s were largely shaped by mercantilism, agricultural economies, forced labor, trade regulations, and underdeveloped infrastructure compared to the existing economic systems in Europe at that time.