Lecture Notes: Mercantilism and the Navigation Acts

Introduction

• Lecturer: Mr. Hovind
• Main Topics: Mercantilism, Navigation Acts
• Context: Post-French and Indian War period, British debt

Key Terms

Import vs Export

• Import: Bringing goods into a country's port.
  • Examples: Food, materials
• Export: Sending goods out to another market.
  • Examples: Goods grown, mined, or manufactured in the U.S.

Mercantilism

• Definition: Economic philosophy where colonies exist to benefit the mother country.
• Purpose: To help Great Britain pay off its war debts.
• Mechanism:
  • Colonies provide raw materials (e.g., gold, silver, foodstuff) to Britain.
  • Britain manufactures and exports finished goods.
  • Goal: Export more than import to increase wealth.

The Mercantilist System

• Raw Materials: Cotton, tobacco, iron, etc. sent to Great Britain.
• Manufactured Goods: Created in Britain, taxed, and sent back to colonies.
• Taxation: Extra taxes on goods from British ports and imported goods like tea and spices from the East Indies.
• Profit: Makes the British Royalty and Britain wealthy.

Navigation Acts

• Purpose: Enforce mercantilism and protect British trade.
• Regulations:
  • Colonies must use British ships for transporting goods.
  • All imported goods must come from Great Britain.
  • Manufactured goods heavily taxed.
• Impact:
  • Colonies must produce goods needed by Britain.
  • Colonists pay inflated prices for taxed goods.

Effects of Mercantilism and Navigation Acts

• Colonial Resentment:
  • Control and laws by British are a source of resentment.
  • Colonists receive minimal compensation for raw materials.
  • High taxes on manufactured goods results in colonial debt.
• Taxation Without Representation:
  • Colonists felt their rights were threatened.
  • Increased power and wealth for Britain.
  • Contributes to causes of the Revolutionary War.

Conclusion

• British control leads to growing resentment and eventual conflict.
• The lecture underlines the economic exploitation of colonies under mercantilism.