Economy

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Answer the prompt with a debatable position

Use the word because

Develop a line of historical

Dutch Empire

Established colonies in the Caribbean, Brazil, and North America

Slave trade: Use enslaved Africans to work in the sugar plantations of the Caribbean and South America

Dutch West India Company

Dutch traders established colonies via the Dutch West India Company (DWIC)

1624 Dutch West India Company settled colonists on Manhattan Island- what would become New York City

Monopoly: The DWIC was granted exclusive control (monopoly) over Dutch trade in the Atlantic

Dwic is part of a joint stock company where financial resources are pooled and the risk is shared for tricky maritime voyages.

This is central to the development of capitalism

Historical development

The influx of wealth from the Columbian exchange hastened the end of feudalism in Europe and replaced it with capitalism

Capitalism economic system based on private ownership in the free and open exchange of goods based on supply and demand the goal is to make a profit

Mercantilism

Early capitalism was financed by a mercantilist economy

  • Mercantilism: 15th -18th-century European economic policy colonies existed to benefit the parent country economically. 
  • Colonies were used to maximize exports and minimize imports by drawing raw materials from the colonies and selling them back as finished goods.

Mercantilism aimed to increase a country's wealth and power by maintaining a favorable balance of trade, which meant having more exports than imports. 

  • Government Regulation
  • Cheap raw materials & cheap labor = maximum outputs

Dutch Religious Toleration

The Dutch Republic was known for its relative religious tolerance compared to other European nations.

Diversity: Calvinists, Catholics, Jews, and other religious groups coexisted in Dutch territories.

Dutch religious tolerance attracted a variety of settlers, fostering a more diverse colonial society.

French Empire

Fur trade was central to French and Dutch colonial economy.

Impact on Natives: 

  • Poor soil, lacked the need for native labor/land
  • Requires trade and military alliances with Native Americans 

Results in more humane treatment of natives and thus natives have more control than in Spanish outposts.