How did the Anglo-American economic relationship change in the 18th century?

History · Middle School · Thu Feb 04 2021

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Answer: The Anglo-American economic relationship underwent significant changes in the 18th century as a consequence of evolving political, economic, and social dynamics. During this period, British and American economies were deeply intertwined, but the nature of their interactions changed from one of colonial dependency to a more contentious and ultimately conflictual relationship.

1. Mercantilism: In the early to mid-18th century, Britain's economic policy with regards to its colonies, including those in America, was based on mercantilism. This meant that the colonies were expected to provide raw materials to the mother country and in turn receive finished goods. This policy limited the type of economic activities that the colonies could engage in and benefited British economic interests by ensuring a favorable balance of trade.

2. Navigation Acts: A series of laws known as the Navigation Acts were intended to uphold this mercantilist relationship. These acts restricted trade between the colonies and countries other than Britain and mandated that goods be shipped on English or colonial-built ships.

3. Salutary Neglect: For much of the early 18th century, a policy known as "salutary neglect" meant that these mercantilist laws were not strictly enforced. This allowed the American colonies to engage in a degree of economic autonomy, fostering the development of a proto-industrial economy and a thriving trade with non-British partners.

4. Increased Tension: As the century progressed, British enforcement of mercantilist policies became stricter. This shift was in part due to Britain's need to pay off debts accrued from wars in Europe. The colonists, who had enjoyed relative economic freedom, began to resent this crackdown and its negative impact on their economy.

5. Taxes and Acts: In an attempt to generate revenue from its colonies, Britain imposed a series of taxes and acts such as the Sugar Act (1764), the Stamp Act (1765), and the Townshend Acts (1767). These were deeply unpopular in America and led to protests and resistance, such as the slogan "No taxation without representation."

6. American Revolution: The economic tensions came to a head and contributed to the outbreak of the American Revolution in 1775. After the revolution and subsequent independence declared in 1776, the economic relationship was transformed as the United States emerged as an independent nation no longer under British economic dominance.

7. Post-Revolutionary Relationship: After the war, despite the tension and hostilities, the two nations were still economically connected. The United States remained a primary market for British exports and a key supplier of raw materials. However, now the relationship was subject to international trade agreements and negotiations.

By the end of the 18th century, the Anglo-American economic relationship had transitioned from a colonial system structured by mercantilist policies to an international trade relationship following the establishment of American independence.

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