Final answer:
The Declaratory Act was created to assert British parliamentary power over the colonies following the repeal of the Stamp Act. It intended to maintain British authority and paved the way for future taxation leading to increased colonial unrest and the desire for independence.
Step-by-step explanation:
The British Parliament created the Declaratory Act of 1766 to assert their absolute authority to make laws and levy taxes in the colonies, regardless of any colonial laws to the contrary. This was done following the repeal of the unpopular Stamp Act, as a means to appease those in Britain who feared that the repeal would undermine Parliament’s authority over the American colonies. While the colonists initially rejoiced over the repeal of the Stamp Act, they paid little attention to the Declaratory Act at first. However, it had a hidden meaning, asserting that Parliament had sovereign power over the colonies, setting a basis for future laws and taxes imposed on them, such as the subsequent Townshend Acts.
This enactment inevitably led to a turbulent relationship between Britain and the colonies, fueling the colonists' desire for independence. By placing taxes and controlling colonial affairs without their consent, Parliament was contradicting the rights believed to be granted to British citizens, like the trial by jury and the principle of popular sovereignty. These actions, including the Declaratory Act, convinced the colonists of the necessity to declare their independence, ultimately culminating in the American Revolutionary War and the creation of the Declaration of Independence.