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The tea act of 1773

Parliament did not enact the Tea Act of 1773 in order to punish the colonists, assert parliamentary power, or even raise revenues. Rather, the act was a straightforward order of economic protectionism for a British tea firm, the East India Company, that was on the verge of bankruptcy. In the colonies, tea was the one remaining consumer good subject to the hated Townshend duties. Protest leaders and their followers still avoided British tea, drinking smuggled Dutch tea as a sign of patriotism.

The Tea Act of 1773 gave the British East India Company the ability to export its tea directly to the colonies without paying import or export duties and without using middlemen in either Great Britain or the colonies. Even with the Townshend tax, the act would allow the East India Company to sell its tea at lower prices than the smuggled Dutch tea, thus undercutting the smuggling trade.

This act was unwelcome to those in British North America who had grown displeased with the pattern of imperial measures. By granting a monopoly to the East India Company, the act not only cut out colonial merchants who would otherwise sell the tea themselves; it also reduced their profits from smuggled foreign tea. These merchants were among the most powerful and influential people in the colonies, so their dissatisfaction carried some weight. Moreover, because the tea tax that the Townshend Acts imposed remained in place, tea had intense power to symbolize the idea of “no taxation without representation.”

Colonial protest: the destruction of the tea

The 1773 act reignited the worst fears among the colonists. To the Sons and Daughters of Liberty and those who followed them, the act appeared to be proof positive that a handful of corrupt members of Parliament were violating the British Constitution. Veterans of the protest movement had grown accustomed to interpreting British actions in the worst possible light, so the 1773 act appeared to be part of a large conspiracy against liberty.

As they had done to protest earlier acts and taxes, colonists responded to the Tea Act with a boycott. The Committees of Correspondence helped to coordinate resistance in all of the colonial port cities, so up and down the East Coast, British tea-carrying ships were unable to come to shore and unload their wares. In Charlestown, Boston, Philadelphia, and New York, the equivalent of millions of dollars’ worth of tea was held hostage, either locked in storage warehouses or rotting in the holds of ships as they were forced to sail back to Great Britain.

In Boston, Thomas Hutchinson, now the royal governor of Massachusetts, vowed that radicals like Samuel Adams would not keep the ships from unloading their cargo. He urged the merchants who would have accepted the tea from the ships to stand their ground and receive the tea once it had been unloaded. When the Dartmouth sailed into Boston Harbor in November 1773, it had twenty days to unload its cargo of tea and pay the duty before it had to return to Great Britain. Two more ships, the Eleanor and the Beaver , followed soon after. Samuel Adams and the Sons of Liberty tried to keep the captains of the ships from paying the duties and posted groups around the ships to make sure the tea would not be unloaded.

Questions & Answers

What are the factors that affect demand for a commodity
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Lambiv
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appreciation
Eliyee
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In economics, a perfect market refers to a theoretical construct where all participants have perfect information, goods are homogenous, there are no barriers to entry or exit, and prices are determined solely by supply and demand. It's an idealized model used for analysis,
Ezea
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other things being equal
AI-Robot
When MP₁ becomes negative, TP start to decline. Extuples Suppose that the short-run production function of certain cut-flower firm is given by: Q=4KL-0.6K2 - 0.112 • Where is quantity of cut flower produced, I is labour input and K is fixed capital input (K-5). Determine the average product of lab
Kelo
Extuples Suppose that the short-run production function of certain cut-flower firm is given by: Q=4KL-0.6K2 - 0.112 • Where is quantity of cut flower produced, I is labour input and K is fixed capital input (K-5). Determine the average product of labour (APL) and marginal product of labour (MPL)
Kelo
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Shukri
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Shukri
what is monopoly mean?
Habtamu Reply
What is different between quantity demand and demand?
Shukri Reply
Quantity demanded refers to the specific amount of a good or service that consumers are willing and able to purchase at a give price and within a specific time period. Demand, on the other hand, is a broader concept that encompasses the entire relationship between price and quantity demanded
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Economic growth as an increase in the production and consumption of goods and services within an economy.but Economic development as a broader concept that encompasses not only economic growth but also social & human well being.
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Jabir
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Asui
it is a curve that we get after connecting the pareto optimal combinations of two consumers after their mutually beneficial trade offs
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In economics, the contract curve refers to the set of points in an Edgeworth box diagram where both parties involved in a trade cannot be made better off without making one of them worse off. It represents the Pareto efficient allocations of goods between two individuals or entities, where neither p
Cornelius
In economics, the contract curve refers to the set of points in an Edgeworth box diagram where both parties involved in a trade cannot be made better off without making one of them worse off. It represents the Pareto efficient allocations of goods between two individuals or entities,
Cornelius
Suppose a consumer consuming two commodities X and Y has The following utility function u=X0.4 Y0.6. If the price of the X and Y are 2 and 3 respectively and income Constraint is birr 50. A,Calculate quantities of x and y which maximize utility. B,Calculate value of Lagrange multiplier. C,Calculate quantities of X and Y consumed with a given price. D,alculate optimum level of output .
Feyisa Reply
Answer
Feyisa
c
Jabir
the market for lemon has 10 potential consumers, each having an individual demand curve p=101-10Qi, where p is price in dollar's per cup and Qi is the number of cups demanded per week by the i th consumer.Find the market demand curve using algebra. Draw an individual demand curve and the market dema
Gsbwnw Reply
suppose the production function is given by ( L, K)=L¼K¾.assuming capital is fixed find APL and MPL. consider the following short run production function:Q=6L²-0.4L³ a) find the value of L that maximizes output b)find the value of L that maximizes marginal product
Abdureman
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Source:  OpenStax, U.s. history. OpenStax CNX. Jan 12, 2015 Download for free at http://legacy.cnx.org/content/col11740/1.3
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