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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

Ayele, K., 2003. Introductory Economics, 3rd ed., Addis Ababa.
Widad Reply
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Ariel
?
Ariel
What is economics
Widad Reply
the study of how humans make choices under conditions of scarcity
AI-Robot
U(x,y) = (x×y)1/2 find mu of x for y
Desalegn Reply
U(x,y) = (x×y)1/2 find mu of x for y
Desalegn
what is ecnomics
Jan Reply
this is the study of how the society manages it's scarce resources
Belonwu
what is macroeconomic
John Reply
macroeconomic is the branch of economics which studies actions, scale, activities and behaviour of the aggregate economy as a whole.
husaini
etc
husaini
difference between firm and industry
husaini Reply
what's the difference between a firm and an industry
Abdul
firm is the unit which transform inputs to output where as industry contain combination of firms with similar production 😅😅
Abdulraufu
Suppose the demand function that a firm faces shifted from Qd  120 3P to Qd  90  3P and the supply function has shifted from QS  20  2P to QS 10  2P . a) Find the effect of this change on price and quantity. b) Which of the changes in demand and supply is higher?
Toofiq Reply
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innocent Reply
factors influencing supply
Petrus Reply
what is economic.
Milan Reply
scares means__________________ends resources. unlimited
Jan
economics is a science that studies human behaviour as a relationship b/w ends and scares means which have alternative uses
Jan
calculate the profit maximizing for demand and supply
Zarshad Reply
Why qualify 28 supplies
Milan
what are explicit costs
Nomsa Reply
out-of-pocket costs for a firm, for example, payments for wages and salaries, rent, or materials
AI-Robot
concepts of supply in microeconomics
David Reply
economic overview notes
Amahle Reply
identify a demand and a supply curve
Salome Reply
i don't know
Parul
there's a difference
Aryan
Demand curve shows that how supply and others conditions affect on demand of a particular thing and what percent demand increase whith increase of supply of goods
Israr
Hi Sir please how do u calculate Cross elastic demand and income elastic demand?
Abari
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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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