USA – On

the Eve of
it’s

Independ
ence
 Contents
 Introduction
 Path to Independence
 Goals of USA’s economy before Independence
 Policy Framework
 Agriculture
 Trade and Commerce
 Industrial Sector
 Financial and Banking Sector
 Institutional Arrangements
 Growth in US’s Economy after Independence
 Introduction
The United States gained its independence from Great Britain through a protracted struggle
known as the American Revolution, which lasted from 1775 to 1783.
The American Revolution and the subsequent achievement of independence were the result of
a combination of factors, including resistance, military campaigns, diplomacy, and the unyielding
determination of the American colonists to secure their freedom and self-governance.
The United States emerged as a new nation, free from British colonial rule, and it established a
democratic system of government based on the principles of the Declaration of Independence
and the Constitution.
 e c n e d n e p e d In to th a P

Path to Independence
Boston Tea Party Declaration of Revolutionary War
In 1773, colonists Independence The American
protested against In 1776, the Continental Revolution, fought
Congress adopted the
British tea taxes by Declaration of
between 1775 and
throwing tea Independence, asserting 1783, led to
shipments into the the colonies' right to self- independence and the
Boston Harbor. governance. birth of a new nation.
Goals of USA’s Economy Before
Independence

Economic Self Resource Private

Sufficiency Utilization Enterprise

Economic Labour Force

Diversification Development
 Policy Framework

Colonial Self- British Colonial

Governance Mercantilism Policy
 Agriculture
•The majority of colonists were engaged in subsistence farming, which means they primarily grew
crops and raised livestock to meet the basic needs of their families. They cultivated crops like
wheat, corn, oats and raised animals such as cattle, pigs, sheep.
•Mercantilist economic policies often restricted colonial agricultural production by imposing
tariffs, regulations, and trade restrictions that favored British interests over those of the
American colonists.
•The lack of transportation and infrastructure made it difficult for farmers to get their products to
market. American agriculture was heavily reliant on British imports, including tools, seeds, and
manufactured goods. This dependency made American farmers vulnerable to disruptions in
trade.
 Trade and Commerce
 Trade and commerce in the pre-independence period of the United States were shaped by
colonial relationships with Great Britain and other European nations. While trade was essential
for the colonies' economic survival, it was subject to various challenges and restrictions.
A significant part of colonial commerce involved the triangular trade route, which connected the
American colonies, West Africa, and the Caribbean.
The British Crown imposed various taxes on colonial trade, such as the Sugar Act, Stamp Act,
and Townshend Acts, without giving the American colonists representation in the British
government.
American colonies were heavily reliant on manufactured goods imported from Britain. The lack
of domestic industry made the colonies vulnerable to disruptions in trade.
 Industrial Sector
• Before the United States declared its independence in 1776, there was only a nascent industrial
sector in the American colonies. The pre-independence industrial landscape was significantly
less developed than what would emerge in the decades following independence.
•The colonies had limited access to capital for industrial development. Banking systems were
underdeveloped, and there were few sources of investment capital.
•Skilled labor was often in short supply, and training apprentices was a slow and labor-intensive
process. Many skilled artisans were also involved in agriculture.
•Technological innovation was limited in the pre-independence period, and many industries
relied on traditional methods and tools.
•British manufactured goods were often cheaper and of higher quality than locally produced
items, which made it difficult for colonial industries to compete.
 Financial and Banking Sector

•Before the United States declared its independence the American colonies had a limited and
underdeveloped financial and banking sector. There was no central bank in the American
colonies, and the colonies had a decentralized approach to banking and finance.
•Many of the colonial governments issued their own paper currency to facilitate trade and
commerce. These currencies were often unregulated and subject to inflation, counterfeiting,
and fluctuations in value.
•While some banks existed, they were few in number and often small in scale. These early banks
primarily served the needs of local businesses and individuals.
•Banking services were rudimentary compared to contemporary standards. There were no
savings accounts, checking accounts, or other modern financial instruments.
 Institutional Arrangements
Each colony had its own judicial system. Local courts, county courts, and higher-level colonial
courts were responsible for handling legal matters and disputes. The legal framework was often
based on English common law.
Some colonies had established churches with official state support, while others promoted
religious freedom and allowed for the diversity of religious beliefs. Religious institutions played a
significant role in the social and cultural life of the colonies.
The colonies established schools and colleges to provide education to their populations. Some
of these institutions, like Harvard and William & Mary, had religious affiliations and played a role
in training clergy and leaders.
Colonial militias were organized for defense and security. Local residents, including male
citizens, were often required to serve in the militia. The militias were instrumental in protecting
against external threats and maintaining order.
 Growth in the Economy
after Independence
Agricultural Revolution: The adoption of new farming techniques, such as the use of the steel plow,
crop rotation, and mechanized farming equipment, significantly increased agricultural productivity. The
United States became a major exporter of agricultural products, including cotton, wheat, and corn.
Industrialization: The Industrial Revolution in the 19th century transformed the U.S. economy.
Innovations in manufacturing and transportation, such as the cotton gin, the steam engine, and the
railroad, revolutionized production and distribution. The rise of factories and the growth of industries
like textiles, steel, and machinery boosted economic output.
Financial Institutions: The development of a modern financial system with banks, credit, and currency
stability improved access to capital and facilitated economic transactions. The establishment of the
U.S. Mint in 1792 ensured the issuance of standardized coinage.
Financial Institutions: The development of a modern financial system with banks, credit, and currency
stability improved access to capital and facilitated economic transactions. The establishment of the
U.S. Mint in 1792 ensured the issuance of standardized coinage.
Government Policies: The U.S. government adopted policies that supported economic
development, such as protective tariffs, land grants for railroads, and the promotion of intellectual
property rights. It also created a legal and regulatory framework that encouraged private enterprise
and competition.
Education and Human Capital: The expansion of educational opportunities and the development of
a skilled workforce helped drive economic growth. Institutions of higher learning, like universities
and technical schools, played a vital role.
Immigration: A steady influx of immigrants contributed to population growth and a diverse labor
force. Immigrants brought diverse skills, talents, and entrepreneurial spirit to the country,
contributing to economic expansion.
Trade and Global Expansion: The United States engaged in international trade, exporting goods to
Europe and other markets. The growth of a merchant marine, combined with a commitment to free
trade, encouraged economic ties with other nations.
Thank You
Made by:
Chahak Berry
Kunal Lakhani
Navya Sikka
Ananya Sharma
Kamakshi Raman
Satakshi Kaushik