Chapter 2 : Economic causes of the
american revolution
As you have learned, there are many factors that contributed to the American Colonists' decision to fight for independence from Great Britain. Just as there are social and political causes of the American Revolution, there are also economic causes. What does economic mean? Economic comes form the word economy which means money and business. The economy of a country is its wealth (how much money the country has) and the country's resources, specifically in terms of the production and consumption of goods and services - meaning, how a country produces it's goods and the consumers who buy its goods. Economics have to do with making a profit (making money) and the business aspects of a country. That being said, we will be looking at the economic causes of the American Revolution and what affected the American Colonies' economy.
First, we will look at the French and Indian War. You remember learning that the French and Indian War was a seven-year war fought from 1756 to 1763 in the American Colonies. It was fought between England and the American colonies, against the French and some of the Indians in North America, such as the Mohawk, Iroquois, and Shawnee tribes. France had expanded it's colonies into the Ohio River valley, which brought repeated conflict with the land the British had claimed for it's colonies. This led to a series of battles which then led to the official British declaration of war in 1756. When the war finally ended in 1763 with the signing of the Treaty of Paris, France had lost control of Canada. The Indians that had threatened the American colonists were defeated.
But this war had become much bigger and more costly then expected. Great Britain spent a large amount of money supporting and fighting the war. The American Colonists had also fully participated in this war, since they were controlled by Great Britain. Because of Great Britain's costly war and the participation of the American Colonists in the war, there would be a great economic affect on the American Colonies. The British would look to and depend on the colonies to help pay the war costs and the new costs for the new territory the British gained from the war. These events would help influence and support the American Colonies' decision for independence from Great Britain.
Since Great Britain now had much more territory because of the land they gained from winning the French and Indian War, they needed to protect it against Indian attacks. The British needed to hire more soldiers, sending them to protect the newly gained territory in the American Colonies. Great Britain also needed to pay these soldiers, build more forts, and purchase much more weapons and ammunition. This cost money and the British were already greatly in debt from the French and Indian War since it had cost them so much money. The British Parliament decided that it would be reasonable and rational to tax the American Colonies. The money Great Britain received from the taxes on the American Colonists would help pay for the increased protection of the newly gained territory, and also help Great Britain to pay off its costly debt.
After the war ended in 1763, Great Britain also imposed the Proclamation of 1763 on the American Colonies, forbidding any American Colonists to settle on land anywhere past the Appalachian Divide, which was a line "drawn" across the Appalachian Mountains by the British. No one was to settle passed that line or conduct any type of business passed it.
Many Colonists defied this Proclamation because of their desire for better farmland while other Colonists were angry at the British Parliament for making such restrictions and rules on trade and where they could live and settle.The American Colonists were angry! They had not wanted to participate in the French and Indian War and now they were being taxed by Great Britain for the war. As you have learned, the Colonies had felt a growing sense of independence and desire to self-govern before the French and Indian War, because of isolation by Great Britain during the English Civil War. The Colonies had also felt angry that Great Britain was trying to control where they settled. They did not want to be controlled because of the Proclamation of 1763. As the British began to impose and force taxes upon the Colonies, such as the Stamp Act and the Sugar Act, the Colonists would become angered and felt that they should not be taxed without representation in the British Parliament.
"No taxation without representation!"
First, we will look at the French and Indian War. You remember learning that the French and Indian War was a seven-year war fought from 1756 to 1763 in the American Colonies. It was fought between England and the American colonies, against the French and some of the Indians in North America, such as the Mohawk, Iroquois, and Shawnee tribes. France had expanded it's colonies into the Ohio River valley, which brought repeated conflict with the land the British had claimed for it's colonies. This led to a series of battles which then led to the official British declaration of war in 1756. When the war finally ended in 1763 with the signing of the Treaty of Paris, France had lost control of Canada. The Indians that had threatened the American colonists were defeated.
But this war had become much bigger and more costly then expected. Great Britain spent a large amount of money supporting and fighting the war. The American Colonists had also fully participated in this war, since they were controlled by Great Britain. Because of Great Britain's costly war and the participation of the American Colonists in the war, there would be a great economic affect on the American Colonies. The British would look to and depend on the colonies to help pay the war costs and the new costs for the new territory the British gained from the war. These events would help influence and support the American Colonies' decision for independence from Great Britain.
Since Great Britain now had much more territory because of the land they gained from winning the French and Indian War, they needed to protect it against Indian attacks. The British needed to hire more soldiers, sending them to protect the newly gained territory in the American Colonies. Great Britain also needed to pay these soldiers, build more forts, and purchase much more weapons and ammunition. This cost money and the British were already greatly in debt from the French and Indian War since it had cost them so much money. The British Parliament decided that it would be reasonable and rational to tax the American Colonies. The money Great Britain received from the taxes on the American Colonists would help pay for the increased protection of the newly gained territory, and also help Great Britain to pay off its costly debt.
After the war ended in 1763, Great Britain also imposed the Proclamation of 1763 on the American Colonies, forbidding any American Colonists to settle on land anywhere past the Appalachian Divide, which was a line "drawn" across the Appalachian Mountains by the British. No one was to settle passed that line or conduct any type of business passed it.
Many Colonists defied this Proclamation because of their desire for better farmland while other Colonists were angry at the British Parliament for making such restrictions and rules on trade and where they could live and settle.The American Colonists were angry! They had not wanted to participate in the French and Indian War and now they were being taxed by Great Britain for the war. As you have learned, the Colonies had felt a growing sense of independence and desire to self-govern before the French and Indian War, because of isolation by Great Britain during the English Civil War. The Colonies had also felt angry that Great Britain was trying to control where they settled. They did not want to be controlled because of the Proclamation of 1763. As the British began to impose and force taxes upon the Colonies, such as the Stamp Act and the Sugar Act, the Colonists would become angered and felt that they should not be taxed without representation in the British Parliament.
"No taxation without representation!"