In: Economics
Using the postulate of self interest, describe why the English colonies in North America evolved toward inclusivity whereas the Spanish colonies tended to develop in an extractive manner.
The postulate of self-interest,
focuses that entity takes initiatives that are in the best interest
of entity and serve them the best. Regarding the English colonies
in the North America, they had colonies with sparse population and
the area was highly underdeveloped. Hence, Britishers had to
implement liberal & development programs, that could first
develop the are for any further use and then British colonies could
garner some profit. It made the evolution of the colonies to be
inclusive, to be later on serving to the British owners. In
contrast to it, Spanish control of the areas were already developed
and with dense population. Hence, the Spanish rulers adopted the
extraction best policies to serve their interests and collected
taxes, and other wealth from already developed colonies. So, the
theory of self-interest applied in both the cases, but approaches
taken up by British and Spanish were different due to different
level of development, type of population and density of the
population.