The document discusses the colonial economy under the mercantile system where Britain created colonies as a source of raw materials and market for finished goods. It allowed the colonies to rule themselves through salutary neglect. The Mayflower Compact established self-government for the pilgrims and the House of Burgesses was the first representative government established in Virginia in 1619. People came to the colonies for religious freedom, economic opportunity, and to escape political persecution in Europe.

3. Colonial Economy
Mercantile System
• Countries create colonies so they have a
source of raw materials and a place to sell
finished goods
• You grow the ingredients for a cake but have
no oven
• I bake the cake and sell it to you for more
money

4. Furniture, Clothing, Tea, Cigarettes, Candy, and other finished goods
Lumber, Fur, Tabaco, Cotton, Rice, Naval supplies, etc…
American
Colonies
Great
Britain

6. Salutary Neglect
England followed a policy of ignoring the
colonies, letting them rule themselves.
England followed a policy of ignoring the
colonies due to the French and Indian war.
Allowing the American Colonists to gain a
sense of INDEPENDENCE

7. Mayflower Compact
• Agreement signed at Plymouth Rock
whereby the pilgrims consented to be
ruled by government they created
• This represents a step towards the idea
of self-government

8. House of Burgesses
1619 Virginia colonists created a
Representative government. Colonists
choose people to represent them and
make decisions.

9. Why did people come to the colonies?
Religious Reasons- to escape persecution and find religious freedom
-Pennsylvania and Maryland were found with the idea that people should
have religious freedom
Economic reasons- to find a better life than in Europe
Political Reasons- to escape persecution for their political beliefs