Question

answer in 3-4 paragraph essays

1. Discuss the distinct regional economies that existed in the British North American colonies.

2. Did mercantilism cause the Revolutionary War?

3. Discuss the cost ($$) of the Revolutionary War, and how the colonists financed their war effort.

4. Historian Michael Lind writes that gaining political independence from England did not necessarily mean gaining economic independence. Explain what he meant based on our course material. (Think Alexander Hamilton.)

Answer 1

The first permanent British settlement in what became the United States was established in 1607, nearly 170 years prior to the American declaration of independence. the economic development of the British North American colonies that became the United States.As it describes, abundant natural resources and scarce labor and capital contributed to the remarkable growth in the size of the colonial economy, and allowed the free white colonial population to enjoy a relatively high standardof living. There was not, however, much improvement over time in living standards. Patterns of factor abundance also played an important role in shaping colonial institutions, encouragingreliance on indentured and enslaved labor as well as the developmentof representative government. For most of the colonial era, the colonists happily accepted their relationship to Britain. After 1763, however, changes in British policies following the endof the Seven Years War created growing tensions with the colonists and ultimately led to the colonies to declare their independence.

Defenders of mercantilism argued that the economic system created stronger economies by marrying the concerns of colonies with those of their founding countries. ... To reinforce its mercantilist control, Great Britain pushed harder against the colonies, ultimately resulting in the Revolutionary War.

During the American Revolution, a cash-strapped Continental Congress accepted loans from France. Paying off these and other debts incurred during the Revolution proved one of the major challenges of the post-independence period. The new U.S. Government attempted to pay off these debts in a timely manner, but the debts were at times a source of diplomatic tension.

In order to pay for its significant expenditures during the Revolution, Congress had two options: print more money or obtain loans to meet the budget deficit. In practice it did both, but relied more on the printing of money, which led to hyperinflation. At that time, Congress lacked the authority to levy taxes, and to do so would have risked alienating an American public that had gone to war with the British over the issue of unjust taxation.

During the Revolution, the French Government also provided the Americans with loans, eventually totaling over two million dollars, most of which were negotiated by Benjamin Franklin. John Adams also secured a loan from Dutch bankers in 1782. After fighting between the Americans and the British ended in 1783, the new U.S. Government established under the Articles of Confederation needed to pay off its debt, but lacked sufficient tax authority to secure any revenue. The government struggled to pay off the loans, stopping payments of interest to France in 1785 and defaulting on further installments that were due in 1787. The United States also owed money to the Spanish Government and private Dutch investors, but focused on paying off the Dutch because Amsterdam remained the most likely source of future loans, which the United States successfully obtained in 1787 and 1788, despite its precarious financial state.

The American Revolution costed 101 million or 2.4 billion dollars. The major options to fund the war were taxes, bonds, borrowing, print money (leads to inflation). They borrowed from the French, Dutch, and citizens. the Bank of the United States was then conceived in 1790 to deal with the war debt and to put the government on sound financial footing- and to strengthen the Union. Hamilton thought having the federal government take over the states' war debts via the Bank would be a good way to fix these problems while establishing federal power preeminent over that of the states, another of his goals.in the view of this Michael Lind state that gaining political independence from England did not necessarily mean gaining economic independence.