European History feat. 'Merica

The Colonies and European Economy

While the cottage industry was developing in Europe, the colonial economies also began to thrive economically. The agricultural industry boomed in British North American colonies, providing an expanding market for English manufactured goods. The colonies gave raw materials back to their mother country - the country could then export manufactured goods, selling them back to the colonies (or to other nations) and taxing the colonies' imports and exports. 

Atlantic trade:

The wealth derived from the colonies was based on a mercantilist system, largely introduced by the Navigation Acts. The Navigation Acts required the colonies to use British ships for all trade, and forced them to purchase manufactured goods exclusively from England, thus increasing British income. Soon other European nations followed England's lead and developed a system of exporting more than they imported, and engaging in foreign trade in order to increase wealth and power of the state. 

The colonies were overall crucial to Europe's, especially England's, economy. The colonies provided raw materials, a market for goods, and an outlet for surplus population. The Atlantic trade created a market of goods from the British North American colonies, such a tobacco and cotton, as well as sugar and rum from the Caribbean colonies, slaves from Africa, precious metals from South America, and manufactured goods exported from the mother countries. At this time, mercantilism and the colonies provided great benefits for Europe, especially England.

Ultimately, toward the end of the 18th century, the colonies began to grow autonomous, and their economies grew independently from England's. Leading to the Revolution and onward, British colonies become more of an economic competitor rather than provider. But for the majority of the seventeenth and eighteenth centuries, the colonies provided a significant benefit on British and European economy.

Then vs. Now

During the fifteenth century, European expansion and intercontinental economy was largely provided by the discovery of the New World and the spice islands. Dominated by Spain, exploration at this time led to a discovery of new lands and new routes, as well as new economies. Better access to the spice islands opened up a new market between Europe and the rest of Asia. Furthermore, as Spain made claims in the New World and began to exploit the natives, new markets emerged as a result of products including sugar, rum, and precious metals gold and silver. These new markets provided a boom in European economy, especially for the Spanish.

In the seventeenth century, as prior discussed, trade with the New World was largely dominated by Britain, and the Atlantic trade allowed European international economy to thrive. Raw materials from the colonies and manufactured goods from Europe allowed for the success of mercantilism.

The fine details of colonial relations in these two periods, of course, have their differences, namely in the dominating countries, the systems of trade, and the dominating products. In the fifteenth century, the Spanish exploited the natives and brought gold and silver back home; in the seventeenth century, the vast majority of the population of England's colonies were British immigrants, and their agricultural economy was largely dominated by British mercantilism.

 However, the goals and motivations are ultimately quite similar. Expansion during the fifteenth century as well as colonization and trade during the seventeenth century were majorly driven by European nations' interest in strengthening their economies and increasing their power. Goals of expansion along with those set forth by mercantilism were largely based on the desire for money and power, and with respect to that drive, the eras were similar in terms of intercontinental trade.