Changes

“[[Capitalism]]” became the prevailing economic theory in Britain as a result of the insights of Adam Smith and others.  The Merriam-Webster online dictionary defines capitalism as follows:  “an economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market.”  Britain quickly became the largest and greatest empire in the history of the world as a result of its adherence to this superior economic system.  The British empire was larger than even the Mongol empire, except that the British empire was not "contiguous" on land, but included faraway places like Australia and India.

“[[Capitalism]]” became the prevailing economic theory in Britain as a result of the insights of Adam Smith and others.  The Merriam-Webster online dictionary defines capitalism as follows:  “an economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market.”  Britain quickly became the largest and greatest empire in the history of the world as a result of its adherence to this superior economic system.  The British empire was larger than even the Mongol empire, except that the British empire was not "contiguous" on land, but included faraway places like Australia and India.

   

   

A related economic theory known as “mercantilism” also became popular.  Mercantilism was a policy for a nation (such as Britain) to increase its own national wealth based on trade with other nations and territories.  Under mercantilism, a nation should accumulate gold by exporting more goods than it imported, and by using colonies (such as the English colonies in America) to ship raw materials to the mother country that could be manufactured and exported to other peoples.  Another key component of mercantilism was establishing foreign trading monopolies that would have unfair advantages over competitors in other countries.  One such British monopoly was the East Indian Tea Company, and its unfair business advantage caused the colonists in Boston to revolt in the form of the Boston Tea Party.

A related economic theory known as “mercantilism” also became popular.  Mercantilism was a policy for a nation (such as Britain) to increase its own national wealth based on trade with other nations and territories.  Under mercantilism, a nation should accumulate gold by exporting more goods than it imported, and by using colonies (such as the English colonies in America) to ship raw materials to the mother country which could be manufactured and exported to other peoples.  Another key component of mercantilism was establishing foreign trading monopolies that would have unfair advantages over competitors in other countries.  One such British monopoly was the East Indian Tea Company, and its unfair business advantage caused the colonists in Boston to revolt in the form of the Boston Tea Party.

While Adam Smith’s “invisible hand” was positive in almost every way, “mercantilism” did have a dark side: exploitation of colonies for the benefit of the mother country.   

While Adam Smith’s “invisible hand” was positive in almost every way, “mercantilism” did have a dark side: exploitation of colonies for the benefit of the mother country.