9/21/2015 Your journal should like: #11 Mercantilism Warm-up: What is the difference between Mercantilism and free enterprise? Closure: Use two vocabulary words in sentences Your Mercantilism Notes will got taped here Mercantilism The Economic system of the English Colonies Theories In the 1700s, British economists believed that wealth was a limited resource. Theories Based on this idea, trading with other nations meant that you were giving your wealth away Characteristics of Mercantilism 1. It is a controlled economy (economy where the government makes all economic decisions) Characteristics of Mercantilism 2. The 13 colonies were to generate raw materials for English industry New England Middle Southern Characteristics of Mercantilism 3. The colonies CANNOT trade with anyone except England & England set all the prices. Characteristics of Mercantilism 4. Job choices are limited, and usually determined by England The Colonists Reactions The colonists wanted opportunities to make more money The colonists desired a free-enterprise system (where consumers make the choices) Breakin the Law To take advantage of better prices in France and Spain, many colonists began to smuggle (illegally transport) goods Tensions rise Colonists resented mercantilism as a way to keep them poor, while England used the system to make themselves rich Growing problem Some were worried this would lead to conflict. WAR!!! But a war with France would bring the colonies and King George III closer than ever for a while Video