Economic Development and Mercantilism
Mercantilism
Mercantilism emerged as a new economic system in which the mother country trades with the colonies, and the colonies are not allowed to trade directly with other nations. It was intended to lessen financial dependence on other European countries.
- • The incredible influx of gold and silver in the 1500s led inflation to spread from Spain throughout Europe because the mines at Guanajuarto, Zacatecas, and Potosi in Mexico and Peru flooded the gold and silver markets.
- The availability of gold in the New World lured many entrepreneurs there, damaging domestic industry in Spain.
- Slavery, although it had existed since the dawn of time, increased and changed drastically in character – in large part because of exploration.
- • Plantation agriculture was practiced by the conquering Europeans in the New World.
- At first they exploited the natives, who died in the millions as a result of disease and harsh treatment.
- Soon after, Europeans resorted to importing African slaves, and race would be linked to slavery in the Americas from this point onward.
- • Between 1453 and 1865 over 200 million Africans and their descendants were enslaved or killed in the slave trade.
- • In 1790 Africans made up about 20 percent of the U.S. population.
- • Africans were seen as beastly and were feared for their potent sexuality.
- • Many tried to justify slavery by stating that sub-Saharan Africans were subhuman and had no original culture of their own.
