Essay about The Economy Of Latin American Colonies

1236 Words Nov 19th, 2014 5 Pages
During the age of colonization, Spanish and Portuguese colonies became decisive exponents to European economy. The economy of Latin American colonies was mainly based on mining, agriculture and monopoly. In turn, European’s economy was heavily based on these revenues. Basically, the colonies “existed to increase the economic well-being and political strength of their mother country” (Burkholder and Wasserman, 157). In an effort to maintain their own economic stability, the Castilian and Portuguese crowns tried to regulate the Colonies’ economy as much as possible. Nevertheless, regulations, economic stability and taxation were very difficult to control. Contraband, smuggling and illegal money making offered attractive possibilities for extra profits to colonial producers while it brought serious fiscal and economic threats to the Crown’s economy.
Spanish and Portuguese- American colonies were profitable to Spain and Portugal because they produced great revenues from mining, agriculture, slaves, and trade. Consequently, Spanish and Portuguese crowns generated profits from taxes imposed over the Colonies such as: the quinto real, capitation, and so forth. In the case of Spanish America, revenues were greatly generated from mining precious metal- especially silver and gold. Although agriculture such as crops and cacao also proved beneficial. In Brazil sugar, tobacco, gold and diamonds were quite profitable. For instance, “ The gold rush in Mina Gerais played a far from…

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