This policy said that with more money, a country has more power. Colonists lost hard-earned money to the king because of the mercantilism policy. The colonists sold their raw materials to the mother country at low prices and bought back the finished products at exceedingly high prices because they could not make them themselves. Another part of mercantilism is that a nation must regulate its trade to sell more than it buys. This brought the Navigation Acts.
With such power the King helped to put William Pitt into power as Prime Minister, in December 1783. The disastrous American War of Independence had drained the country’s finances and so Britain was in crisis when Pitt came into power, the value of exports declined, the National Debt had risen dramatically to £242 million by 1784. Many historians believed that Pitt was a ‘financial genius’, who should have been praised for achieving national revival after the War of Independence, which I agree, however others argued that Pitt was only efficient rather than innovative because the economy was strong and so Pitt owed a lot to others. Firstly, Pitt responded well to Britain’s financial crisis and managed to revive the economy by changing many economic policies and financial policies. After the American War of Independence, the state finance was dire the national debt had risen to £242 million in 1784.
The British authority responded by passing the coercive Act which closed the ports until the debt for the tea was paid off. Prior to the seven years’ war, the colonist enjoyed great autonomy. The mother country rarely interfered with the colonist affair but however, after the war, the autonomy the colonists once enjoyed was significantly reduced. Britain put limitations to the colonies by adding the inauspicious Acts. The Acts fueled anger toward the Mother Country making their relationship precarious.
Exports fell by 12% in the 1770s and national debt increased by 91%. The first few months when Pitt came to power, government debt stood at £242.9 million, (this was a huge amount in those days). That was twenty times the annual revenue of £12.5 million from taxes; national bankruptcy was a strong possibility. Stocks went down by more than 17% during 1783, this reflected declining confidence within the government. The detrimental effects of the war in America where Britain had been humiliated had caused all these problems.
By placing high taxes on imported luxury goods, he inadvertently encouraged smuggling. Philip's monstrous palace and monastery at Escorial had consumed much of Spanish wealth.” (http://www.hyperhistory.net/apwh/bios/b2philip2-spain.htm). Clearly states that Philip II did not value his money at all. He owed 36 million ducats with an annual deficit of 1 million ducats; this was because of his recklessness with money and because of all the money he wasted on wars. Aside from reducing state revenues for overseas expeditions, the domestic policies of Philip II further burdened Spain and would in the following century, contribute to its decline.
While some Americans were pouring their money into the economy, the government was doing very little to fix the problems of unemployment. Unemployment rates had increased by the end of 1920. The unequal distribution of wealth and income made the economy very vulnerable. High tariff barriers disabled trade between the United States and other countries. America was forced to extend credit to ever extended nations in order to keep trade alive.
The idea was to protect the owners of companies from lawsuits. Actually the rich saw it as a way to lower their taxes, fool the uneducated, and to be irresponsible for their cheating and lies. Wal-Mart, which started out selling all American made products, soon started selling products made in sweatshops in foreign counties and we the people did not care and we scooped up the bargains. Now, these Super Corporations, who answer only to the board members and owners, cut the employees pay, use part timers to avoid benefits and count their billions while families are starving. We the people allowed these corporations to get the upper
The reason for the people selling all of their stocks at the some time is too complex to explain in the introduction. When they did sell, the buyers would only buy at an extremely low price. Because of this imaginary price drop, the stocks used as collateral for loans were now worthless (in the eyes of the people and the bank owners) and so they demanded real money. The people had plenty of this, but all of it was in stocks...that were rapidly dropping in value because of some ignorant, greedy and bewildered stockholders were buying their stocks for low prices. As soon as everyone found out (thought) the stocks were worth much less, everyone sold and additional cash was needed to pay off all of their debts.
American’s can’t “pinpoint any lasting way in which the stunning attacks brought Americans together, strengthened our national character, made us more willing to sacrifice or even changed the daily routine for most citizens of the United States”. The shaky economy is still present today, the United States’ GDP accounted for about 23 present of the world’s outputs. Today that has gone to about 19 present. The nation is in debt, 5.8 billion in 2001 and now over 15 trillion in 2011 which is about 100 present GDP. People wanted a memorial for 9/11 but this will cost the country more money and that fact that it will put them even more under isn’t helping either.
The rise of industrial capitalism drastically changed America and the way people thought which had a both positive and negative effect on America. The new industrial transformation made life easier and more convenient for people with the invention of new technology, ideas, and more opportunities. It created more job opportunities and allowed people to use their creativity. People had the freedom to pursue wealth with self-interest and competition as their