2) THE DISCOVERY OF AMERICA:

 Introduction:
The economic history of the United States is about
characteristics of and important developments in the U.S. economy
from colonial times to the present. The emphasis is on economic
performance and how it was affected by new technologies, especially
those that improved productivity, which is the main cause of
economic growth. Also covered are the change of size in economic
sectors and the effects of legislation and government policy.
Specialized business history is covered in American business history.

 Era Of Colonialism:
British Empire made thirteen (13) colonies in
America. At this time the production was very low. New goods and
services were introduced. Very low or no trade with others but only
with British Empire. Manufacturing was not allowed in the country
raw material was exported to British Empire and in return fully
manufactured goods were given back.

 Era Of Mercantilism:
It was the first economic system by which
started at the end of 14th century and beginning of 15th century till
17th century. The colonial economies of the world operated under
the economic philosophy of mercantilism, a policy by which
countries attempted to run a trade surplus, with their own colonies
or other countries, in order to accumulate gold reserves. Colonies
were used as suppliers of raw materials and as markets for
manufactured goods while being prohibited from engaging in most
types of manufacturing. The colonial powers of England, France,
Spain and the Dutch Republic tried to protect their investments in
colonial ventures by limiting trade between each other's colonies.
 Criticism:
Many economists criticized that it is a capitalish system.
There should be a free hand on demand and supply and the
government intervention should be at zero (0) level or low level.

 American Economy At The Time Of Colonialization:

At the
time of colonialization the economy was based on agriculture in
which there was farming, handicrafts, household, etc. The majority
population was related to agriculture (Approx. 90%) and non-
agriculture was making ships in which 5% to 8% population was
employed.

 American Revolution:
Americans in the Thirteen Colonies
demanded their rights as Englishmen, as they saw it, to select their
own representatives to govern and tax themselves – which Britain
refused. The Americans attempted resistance through boycotts of
British manufactured items, but the British responded with a
rejection of American rights and the Intolerable Acts of 1774. In turn,
the Americans launched the American Revolution, resulting in an all-
out war against the British and to independence for the new United
States of America. The British tried to crush the American economy
with a blockade of all ports, but with 90% of the people in farming,
and only 10% in cities, the American economy proved resilient and
able to support a sustained war, which lasted from 1775 to 1783.

 American Economy After Colonialization:

Alexander
Hamilton taking a very broad view as the first Secretary of the
Treasury during the presidential administration of George
Washington. Hamilton believed the United States should pursue
economic growth through diversified shipping, manufacturing, and
banking with it the loans were provided at very low rate of interest.
He sought and achieved Congressional authority to create the First
Bank of the United States in 1791; the charter lasted until 1811.