It can sound cynical to say that the American Revolution had a financial motivation. After all, the writings of the Founders and the personal consequences most of them suffered because of the rebellion seem to belie the idea that they wanted independence just to make money.1
However, it’s also correct to say that much of the tyranny they accused King George III of promoting was economic in nature.
Steven Pincus, a professor of British history at the University of Chicago, argues that the seeds of the American Revolution were sewn in the 1760s when the British Empire was trying to figure out how to pay off the huge debt they amassed during the Seven Years’ War (the French and Indian War where George Washington earned his way up the ranks as a redcoat).2
“The governments, the ministers, the prime ministers who tended to dominate British politics after the succession of George III,” says Pincus, “were people who thought the best way to pay down the debt was to pursue austerity measures, to stop spending money and to tax the people who couldn’t vote in parliamentary elections—the colonies in North America, Ireland and India.”
At the time, the opposing view in Britain was that the best way to get out of debt was to try to stimulate the economy. And some of the most vibrant sectors in that economy were the colonies. In particular, the American colonies were hoping to see continuing economic expansion through ongoing Imperial support of immigration.
However, 15 years before the Declaration of Independence, the British regime did just the opposite, cutting immigration, clamping down on free trade, and increasing taxes. And after a decade and a half of trying to resolve their grievances through the British political system, and getting nowhere, the American colonies decided to break free from the Empire.
Around that same time, many in Ireland were also seeking Independence. But the British successfully put down their rebellion of 1798 and the Irish would have to wait another 125 years to realize their dream of a self-ruled republic.3
India also had numerous rebellions against the British, beginning in 1771. But they did not achieve their independence until 1947.4
Professor Pincus points out that along with the Declaration of Independence, the Continental Congress had also drawn up a series of other measures establishing free trade and abolishing tariff barriers.
“One of the key elements of the thinking of not only the American founders but their political allies in Britain,” says Pincus, “was that to have a dynamic economy, you need producers producing important things but you also need a broad base of consumers who were buying those goods.”
So, while it’s fair to say that our fight for independence was not about big landowners looking to get rich, money did play a role. True freedom also means economic freedom.
If you ever have any questions about your investments or retirement plans, please feel free to give me a call at 801-545-0696.
Regards,
Mark Lund
Stonecreek Wealth Advisors, Inc.
11576 S State Street, Bldg. 1002
Draper, UT 84020
Sources:
1. http://go.pardot.com/e/91522/gners-partly-false-7926316002-/955ttj/2353648290/h/4xY6n3SGom3TvNdvbj-rnkfymTvMmAj9AAPnRTIN4TY
2. http://go.pardot.com/e/91522/rs-wanted-activist-government-/955ttm/2353648290/h/4xY6n3SGom3TvNdvbj-rnkfymTvMmAj9AAPnRTIN4TY
3. http://go.pardot.com/e/91522/wiki-Irish-Rebellion-of-1798/955ttq/2353648290/h/4xY6n3SGom3TvNdvbj-rnkfymTvMmAj9AAPnRTIN4TY
4. http://go.pardot.com/e/91522/i-Indian-independence-movement/955ttt/2353648290/h/4xY6n3SGom3TvNdvbj-rnkfymTvMmAj9AAPnRTIN4TY
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