Explanation: Mercantilism is an economic policy designed to increase a nation's wealth through exports, which thrived in Great Britain between the 16th and 18th centuries. The country enjoyed the greatest benefits of mercantilism between 1640 and 1660 when the prevailing economic wisdom suggested that the empire's colonies could supply raw materials and resources to the mother country and subsequently be used as export markets for the finished products.
The resulting favorable balance of trade was thought to increase national wealth and Great Britain was not alone in this line of thinking. The French, Spanish, and Portuguese competed with the British for colonies under the belief that no great nation could exist and be self-sufficient without colonial resources. Because of this heavy reliance on its colonies, Great Britain imposed restrictions on how its colonies could spend their money or distribute assets.
KEY TAKEAWAYS
Mercantilism exists to increase a country's wealth through its exports.
British economic growth was propelled by raw materials supplied by its colonies so the nation could export finished products.
Mercantilism brought about many acts against humanity, including slavery and an imbalanced system of trade.
During Great Britain's mercantilist period, colonies faced periods of inflation and excessive taxation, which caused great distress.
Angry and frustrated American colonists revolted against the British, which led to the American Revolution and the end of mercantilism.
British Mercantilism's Control of Production and Trade
Mercantilism led to the adoption of enormous trade restrictions, which stunted the growth and freedom of colonial business. Much of the trade that took place before the mid-17th century was controlled by the Spanish and Dutch, including to and from England. That was until the British decided to take the reins of their own shipping rights and eliminate these other nations completely from the equation.
In the 1660s, England passed the Acts of Trade and Navigation. Also known as the Navigation Acts, they were a series of laws designed to make American colonies more dependent on manufactured products from Great Britain. In this vein, British authorities further enumerated a set of protected goods that could only be sold to British merchants, including sugar, tobacco, cotton, indigo, furs, and iron.
But Britain's rise in the shipping wars didn't come without a cost. In fact, there were many transgressions and human rights violations that were committed by imperial the country (not to mention other European empires) on its colonies in Africa, Asia, and the Americas during this time. One of the key things to remember, though, is that not many of these transgressions were directly rationalized by mercantilism.