2.4: Transatlantic Trade

Development

  • How did a global economy develop?

  • Triangular Trade: New England, West Africa, West Indies

    • Example: New England → West Africa

      • Rum traded for slaves

    • Middle Passage to West Indies

      • Slaves traded for sugarcane

      • Back up to New England

Mercantilism

  • Mercantilism: dominant economic system in Europe at this time

    • Fixed amount of wealth in the world

    • Goal: maintain favorable balance of trade

      • Exports > imports

    • Establishment of colonies

      • 1. Access to raw materials

      • 2. Colonies could become markets for their manufactured goods

  • British gov tried to weave center of empire with colonies

    • Navigation Acts

      • Merchants can only trade with English colonies in English ships

      • Valuable trade items required to pass through British ports (where they were taxed)

Key Effects

  • Generated massive wealth for elites

    • Merchants, investors, planters

  • Transformed America’s sea ports into urban center

  • Consumer Revolution in America

    • Before: Affluent families bought more goods, societal status determined by family

    • Change: societal status tied more to financial success and financial lifestyle