BAILOUTS CAUSED THE AMERICAN REVOLUTION

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May 17, 2013 by calamity3039

This is going to be my first series. It is an in depth look into the American Revolution Fourth Turning. Our history in that time span is not the whole story. There was economic collapse happening in Europe. Corruption was running wild in politics. There were massive power struggles with Empires. A massive famine in India that created more economic havoc. There are plenty of lessons to learn and compare to our own developing Fourth Turning.

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Most Americans are told the classic story about the founding of our Nation. After becoming angry over “taxation without representation”, the Colonists dumped British tea in the Boston Harbor. They were being oppressed by the British Crown and denied rights.The Crown passed many laws that were heavily opposed. British troops occupied many cities.

They retaliated by rebelling against the Crown and declaring their Independence. They formed a Militia of farmers and defeated the British. America was it’s own Nation, formed by the thirteen colonies that were formerly under British. They drew up a new form of government, many men became historical heroes, and Americans were guaranteed rights.

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Those who don’t know why history happens, are doomed to repeat it. This under dog story we have been told, is not the whole story. At the time, the Colonists were just pawns, and a small fraction, of the Imperialist power struggles. They Colonies were not their own Nation, and could not resist a new type of tyranny. During the mid eighteenth century corporations had more power the Sovereign Nations. They had control of Territories, their own Army, and could impose taxes.

Though, the ending of the Sevens Years Wars contributed to higher taxes, those taxes weren’t the spark that caused the Colonists to rebel. There was another reason why the Colonists were being over taxed. The British Crown needed funds to bailout the British East India Company.

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The Company was going broke and the British Empire was on the verge of ruin. The Crown believed the Company was too big to fail. Its collapse would have been a domino effect of crashing economies in Europe. The British Crown had no choice but to absorb their assets and bad debt.

In 1694, the English Parliament was being heavily lobbied by wealthy aristocrats and associates of the Company. They wanted deregulation to be able to establish private trading firms in India. At the time, the government had control of all the trade to the New World and India. That same year the Triennial Act was passed, to hold elections in Parliament every three years. It was to reinforce the power of Parliament and guarantee meetings with the King.

As a result, political power and instability was growing. Elections that were too frequent lead to bribes of officials. Many politicians passed the deregulation laws and expanded the Company’s Charter. After 10 elections in a 20 year time span, the law was changed to hold less frequent elections.

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In 1770, the Bengal Territory experienced a famine that eliminated a third of the population. The Company had control of the region and had lost labor and goods. To avoid bankruptcy they requested financial help from Parliament. Due to the famine, the British Empire acquired bad debts to save the Company. The East India Act of 1773 gave the Empire complete control of the company and it assets.

At the same time the Parliament implemented heavy regulation and raised taxes. Those taxes were passed to the Colonies with the passing of the Tea Act of 1773. This led to colonists and private merchants to be outraged. The Townsend Acts of 1770 had already cause tensions against the British. Facing the possibility of taxes on other goods, they threw the tea into the Boston Harbor.

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One thought on “BAILOUTS CAUSED THE AMERICAN REVOLUTION

  1. sensetti says:

    Thanks , keep writing

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