Economic+History

ECONOMIC HISTORY

PRE-COLONIAL AMERICA

Columbian Exchange(not economic specifically)



Gives: Effects: New World: Corn,potatoes, tomatoes, tobacco, beans, vanilla, chocolate Pineapples enlarge population Europe, led to a surplus population which would later immigrate to America Gold and Silver Inflation in Europe more Banking Systems More money for exploration Syphilis STDs reach the old world and devastate Old World : wheat, sugar, rice, coffee Food products that would be later farmed and grown mostly on plantations-beginning of the plantation system Horses, cows, pigs Gave native americans the ability to travel and move introduced farm animals, as we know them, to America

Smallpox, measles, plague, typhus, diptheria, scarlet fever etc Wiped out Native American Population allowed them to be easily conquered

Africa : Slaves Beginning of the American Slave System

__COLONIAL__
__Mercantilism__ -economic system whereby colonies exist solely to benefit the mother country

-involved exporting more than importing -nations wealth based on silver and gold and the colonies held

__TAXES__
 * enacted by Britain
 * Stamp Act
 * Townshend Acts
 * Intolerable Acts

__HAMILTONIAN SYSTEM__



Policies:
 * Favor wealthy so they would in return lend money and support
 * More debt is better because it will bind union-more people will have a stake in it

1) Funding At Par - paying off the national debt at face value plus interest 2) Assumptioin - the federal government would take all the states, and wealthy's debt from the war 3) National Bank - government would be the largest stockholder (1/5), rest of stock open to public -store surplus funds/money in the bank--> these funds would be used in order to circulate money and stimulate economy -establish a stable paper currency - under the elastic clause("necessary and proper") and loose construction(interpret constitution, don't follow word for word, if it doesn't say you can't do it then you can) it passed 4)Excise tax on whiskey 5) 8% import tax-to protect the infant industries

Effects: 1) riots and rebellions over excise tax on whiskey, since it was a form of money on the frontier-->Whiskey Rebellion 2)Import tax not raised proportionally with industry growth since America was an agricultural society 3) beginning of political parties over loose vs. strict construction

__JEFFERSONIAN POLICIES__

1) repealed excise tax since he was a "farmer" 2)hired Gallatin as a secretary of the Treasury 3)national debt was bad not good-owed money, not free of all debt 4)left the Hamiltonian-federalist policies alone

__EMBARGOS AND OTHER BLOCKADES__

> --> failed cost america import-export profit, and left america alone without many industrial products, while supporting privateers and smugglers
 * Prior to the war of 1812 an embargo was enacted on Europe(JEFFERSON)
 * Next up was the Non-Intercourse Act which reopened trade with all of the world except France and Britain(JEFFERSON)
 * Then there was Macon's Bill No. 2-trade open to all of the world, and if Britain and/or France were to repeal their commercial restrictions then the repealing country would have trade opened with them and the non-repealing would be embargoed.(MADISON)

__THE AMERICAN SYSTEM__ 1)Tariff of 1816: raised import tax to 20-25% to save industries
 * suggested by Clay after the war of 1812(1815)