How Did The Triangular Trade Affect The American Economy

1261 Words6 Pages

Industry and Economics, the Heart of America The “American Dream” is commonly known as the belief that any American, regardless of birthplace or class, can make a living and a name for themselves through hard work and America’s free-enterprise system (Investopedia). This ideal of thought can be traced all the way back to the industry and economics in America in the 1700s. In 18th Century America work was prosperous, demanding, and necessary to provide for a family. American life essentially revolved around the occupations of its citizens. The American economy started with explorers and colonists trading with Native Americans and exchanges with the Old World, then evolved into its own thriving system while enduring obstacles such as tariffs, …show more content…

This caused settlements to be established in North America and colonies to be formed. The Thirteen British Colonies, which would later to become America, fell under Britain’s concept of mercantilism. This policy had their colonies produce for their original country, in this case Britain, and to support their country’s economy (Warren). The Columbian Exchange eventually evolved into what is commonly known as the Triangular Trade. The Triangular Trade involved exporting textiles, rum, and other goods from Europe to Africa, slaves from Africa to the Colonies, and cotton, sugar, and tobacco from the Colonies to Europe (Bradstreet). As demand for New World goods increased, the Colonies had to produce. This led to localized industries such as whaling/fishing, logging, shipbuilding, livestock, fur trading, and distilleries in the New England Colonies, a large amount of grain in the Middle Colonies, and agriculture in the Southern Colonies (Kennedy, et al). The New England Colonies served as the center of trade and heart of the …show more content…

Before the war, America agreed to not import British goods which continued after the war. America began to become more self-sufficient, learning to make more of their own manufactured goods and farming more for themselves. American merchants could now trade with other nations because they were free of Britain's mercantilist system, this lead to new opportunities for trade relations opened with China and other neighboring nations. The Articles of Confederation fell short in many areas, but from an economic standpoint, it didn’t give Congress the authority to control trade or impose taxes which gave merchants and laborers a head start after the war. Republican figures, such as Thomas Jefferson, believed that America’s economy was and always should revolve around agriculture and small local business. Most Federalists encouraged and saw opportunity in industrialization and manufacturing. These two economic principles of thought and views on industry were conflicting and prominent in the American government of the late 18th century. Dipping into the 19th century, congress implemented the Tariff of 1816, the first American protective tariff. This tariff affected foreign goods, making them more expensive, making American goods cheaper to buy. The American system, proposed by Henry Clay, involved a federal bank, in this case the Bank of

Open Document