Cause and effect Americna revolution
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The French & Indian War (1756)
Huge British debt
The Sugar Act (1764)
Britain goes to war against the French, fighting over territory to the west of the Appalachian mountains. Britain spends a lot of money on this war. Britain wins the war.
Colonial trade deficit & economic systems
As a result of the war, Britain doubles their national debt. To fix the problem, Britain begins to increase its taxation of the colonies.
The Currency Act (1764)
Titled the American Revenue Act, this Act reduced the tax on molasses from 6 pence to 3 pence (in an effort to stop American colonists from smuggling), and imposed taxes/duties on even more goods. Merchants were subject to search warrants, leading to tension and resentment amongst colonists.
Colonies buying expensive manufactured goods from Britain began to lose money leading to a trade deficit and lack of hard currency. Colonies began printing paper money, using foreign currencies, and bartering with goods, to solve the problem.
Britain (concerned with the new financial systems being set up in the colonies) passes an Act controlling the printing and use of paper money.
Colonists, fed up with all the Acts and restrictions (Navigations Act, Proclamation, Sugar Act, Currency Act) begin to organise and form protest groups against the British Parliament.
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