Growth of the American Economy

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Tea Act

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Growth of the American Economy

Definition

The Tea Act of 1773 was a British law that granted the British East India Company the exclusive right to sell tea in the American colonies, effectively creating a monopoly. This act aimed to help the struggling company by allowing it to sell its surplus tea directly to consumers at a lower price, bypassing colonial merchants. However, it sparked widespread outrage among colonists who viewed it as another example of taxation without representation and a threat to their economic independence.

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5 Must Know Facts For Your Next Test

  1. The Tea Act was not a tax increase; it actually lowered the price of tea for consumers, but it was opposed because it undermined local merchants and reinforced the British monopoly.
  2. Colonists believed the Tea Act was a means for Britain to exert more control over colonial affairs and economies, fueling their desire for independence.
  3. The passage of the Tea Act led directly to the Boston Tea Party, where colonists protested by destroying over $1 million worth of tea in today's currency.
  4. The British government responded to the Boston Tea Party with punitive measures known as the Intolerable Acts, escalating tensions between Britain and the colonies.
  5. The Tea Act is often seen as a pivotal moment that united various colonial factions against British rule, contributing to the eventual outbreak of the American Revolution.

Review Questions

  • How did the Tea Act contribute to growing tensions between the American colonies and Great Britain?
    • The Tea Act increased tensions because it represented yet another instance of British control over colonial trade. By granting a monopoly to the British East India Company, it threatened local merchants and fueled resentment over taxation without representation. Colonists felt that even though the tea was cheaper, it was still an unfair act that disregarded their rights and autonomy, further galvanizing opposition against British rule.
  • Evaluate the impact of the Boston Tea Party as a direct response to the Tea Act and its implications for colonial unity.
    • The Boston Tea Party was a significant reaction to the Tea Act, demonstrating how colonists were willing to take direct action against British policies. This protest not only involved destroying a large quantity of tea but also served as a unifying event for different colonial factions who were frustrated with British governance. The event sparked widespread protests across the colonies and showed that Americans were prepared to resist what they viewed as oppressive laws, increasing solidarity among them.
  • Analyze how the passage of the Tea Act and subsequent events influenced the trajectory towards revolution in America.
    • The passage of the Tea Act served as a catalyst for revolution by highlighting the deep-seated frustrations among colonists regarding British economic control and lack of political representation. The subsequent Boston Tea Party illustrated a shift from passive resistance to active rebellion against British authority. This escalation prompted punitive measures from Britain, such as the Intolerable Acts, which further alienated colonists and unified them in their resistance efforts. These events collectively fueled revolutionary sentiments that ultimately led to the Declaration of Independence.
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