During The American Revolution, What Happened To The Economy?
During the American Revolution, the economy of America got completely ruined.
You can understand this, that by 1774-1800, the per capita income of the colonists reduced by 22 percent.
This reduction was worse than the time of the Great Depression (1929-1933).
However, there were many reasons for it.
First of all, during that time, Great Britain had superior dominance over oceans, especially on the Atlantic.
They disrupted almost all the trades of the 13 colonies that happened through it.
It caused massive inflation rates in the colonies.
On the other side, the British army was destroying American ships, which resulted in a lack of essential supply during the revolution time.
Such as foods, clothes, and other essential goods, etc.
As per some sources, we found that American militias even had to steal or robbed food for this reason from local cultivators.
Also, the British authority imposed some hard restrictions over manufacturing goods and import-export in the 13 colonies.
Once, the war ended, the newborn nation was sinking into high debt, which became a major challenge for the new government of the United States of America.
During the whole war, the United States s alone spent 400 million dollars in wages for their troops.
However, whatever happened during the wartime; but the aftermath, the scenario started changing for the newborn nation.
Especially, the end of British mercantilism opened a new route for American businessmen for doing various businesses.
Now America had become independent to trade freely with other countries, which was before not possible under British rule.
So, these were the main happenings to the economy of the 13 colonies of North America, during and after the revolution’s era.
What Happened To The British Economy During And After The American Revolution?
Due to the Revolutionary War, the way the American side had to pay a major price on its economic side; similarly, on the economic side, Great Britain also had to pay a major price.
1. First of all, the British economy had drawn into high debt; their debt increased almost two times.
2. Secondly, from 1774, the First Continental Congress decided and urged colonists to boycott the British economic goods’ import and use in the 13 colonies.
Till 1775, this boycott reduced their supply to the colonies by over 97 percent.
This was a tremendous economic loss for the imperial government.
3. Thirdly, the revolution threatened British mercantilism policies throughout all over their colonies in the American continent.
Once the conflict ended, their mercantilism policies also came to an end in the 13 colonies of North America.
Interesting Facts Related To The American Economy
1. Did you know the United States of America (previously 13 colonies) was the first country in the Western world that started authorizing paper money.
This was done in the 1690 century, province of Massachusetts Bay.
2. During American Revolution, the currency’s value of the 13 colonies significantly reduced.
At that time, a quotation regarding its currency became quite popular – “Not worth a continental”.