ECONOMICS Nathan Elsishans Period 6 Native American Based

ECONOMICS Nathan Elsishans Period 6

Native American � Based on farming Aztec wealth flowed to Technochitlan Supplemented by hunting and gathering

Spain � � Encomiendas Imported American gold Raised sheep Supplemented wool harvesting with farming

Britain � � Imported American materials Exported manufactured goods Controlled trade Mercantilism � Favorable balance of trade

Northern Economy � � � Diversified Harvesting of lumber Fish from coast Small scale farming Leads to isolated communities

Southern Economy � Few ports � Difficulty � exporting crops Agriculture based � Grew sugarcane � Shipped crops back to England � Moved crops north along rivers

Middle Colonies � � Tobacco main crop Combination of Northern and Southern colonies

West African Contact � Slave Trade � Most slaves sold to large plantation owners � England founded The Royal African Company Monopolized English slave trade Disbanded and left trade to independent merchants � New England Traders Bartered rum or salt fish �Craft when bartering (sold in short measures/ watered rum often)

Cont. � Loose packing Lower mortality rates leads to higher profit � Tight packing Packed as many slaves as possible for maximum profit Had the upper hand � American Slavery Slaves cost twice as much as indentured servants but had similar life expectancies �Became more useful as resistance to disease grew � Royal African Company

Seven Years War � William Pitt Suggested war be fought in North America Concentrated on colonial expansion � Colonies saw an influx of British resources and money � France lost all claims in North America � England was economically devastated

Townshend Revenue Acts � Instituted by Charles Townshend � Increased taxes on commodities (glass, tea, paint, lead) � External Tax � Extra money used to pay royal officials

Intolerable Acts � Boston Port Bill Closed the Boston port down Crippled Boston’s trading economy � Quartering Act Allowed for British troops to be stationed in homes Increased the cost of living for anyone housing a soldier

Stamp Act � Required royal stamps to be placed on all official documents � Decreased the amount of money exchanged between colonists � Increased British revenue � Internal Tax

Economic Crisis Post Revolution � � � � � Large National Debt Inflation Britain still most dominant trading partner after the war Few coins in circulation Printed currency to pay for troops Leads to deflation Lost British trade during war Self sufficient communities Raw material export

Funding to repay debt Created many items domestically Got loans from Europe �Incurred £ 250 million national debt Tax on whisky Encouraged small industries The Congress passed the Coinage Act The act created the first US mint in Philadelphia. The mint was creating US coins and establish a ratio of 15 to 1 between gold and silver First Savings Bank created

Cotton � Eli Whitney Created cotton gin Separated cotton from waste � Dominates Eastern economies � Labor intensive � Begins to be profitable in southern states

Questions � 1. Who was the first Secretary of the Treasury? � � � 2. What machine allowed for harvesting cotton to become profitable? � � � Spinning Ginny Steam Engine Cotton Gin Telegraph 3. Tariffs were meant to � � � John Locke Alexander Hamilton Eli Whitney Thomas Jefferson Protect small industries Block trade with France Increase the importation of British goods Block trade with Russia 4. Which of the following was a strategy used to raise money after the American Revolution? � � Increase taxes on exported goods Issue bonds Increase trade with France Stop Trade with Canada

� 5. The English began raiding Spanish ports � � � 6. The American Indians and French � � � Traded and formed alliances with each other Despised each other because of French land encroachment Never came in contact with each other Worked together to create a series of successful plantations 7. Colonies in Virginia made the highest profit off of which crop? � � � To get revenge on the pope for declaring Spain as owners of the Americas Out of hatred of the Spanish king To disrupt the Spanish trade empire in the New World Because they were bored Maize Sugarcane Rice Tobacco 8. What was the main effect of importing silver and gold into Europe? � � Prices rose quickly due to inflation The standard of living for most peasants improved The price of tea in China dropped dramatically Slaves were imported from Africa to continue mining operations in the Americas

� 9. Before the advent of the slave trade, African economy was based on � � � 10. The Seven Years War � � � Increased the amount of slaves imported into America Caused an economic crisis in England Transferred power in North America from England to France Decreased political tension between the colonies and England 11. A tobacco based economy was prominent in which colony? � � � Small Farming communities Large scale exportation of sugar Manufacturing The European Iron trade Georgia Rhode Island New York Virginia 12. Which of these acts was considered an internal tax? � � The Quartering Act The Stamp Act The Sugar Act The Townshend Revenue Acts

� 13. The increase in wealth among the rich colonists can be attributed to what cause? � � � 14. The most profitable crop in tropical regions was � � � The lack of new farmland The sudden shift in focus from agriculture to manufactured goods A rapid decline in tobacco exports A strong increase in the need for furs Tobacco Sugar cane Rice Hash 15. Which method was most commonly used by slave traders? � � Loose packing Land based caravans Tight packing Immediate resale to other African colonies

Answers 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Alexander Hamilton Cotton Gin Protect small industries Issue bonds To disrupt the Spanish trade empire in the New World Traded and formed alliances with each other Tobacco Prices rose quickly due to inflation Small Farming communities Caused an economic crisis in England

11. Virginia 12. The Stamp Act 13. The lack of new farmland 14. Sugar cane 15. Tight packing