Question: 1 . 6 points During the Seven Year ( or French and Indian ) War, Britain relied on debt issue to finance its war effort.

1.6 points
During the Seven Year (or French and Indian) War, Britain relied on debt issue to finance its war
effort. This raised the debt-to-GDP ratio in Britain from about 0.7 to 0.8. To help limit the amount
of new debt that needed to be issued, Britain also used some 40% of colonial tax revenues to help
finance the war. It also, of course, relied on domestic taxation. The following table shows an index
of the per capita tax burden in Great Britain along with Ireland and some of Britains American
colonies in 1765, two years after the conclusion of the war. Therefore, the right-hand column
shows how much taxes per capita were in each location as a percentage of those in Great Britain.
Great Britain 100
Ireland 26
Pennsylvania 4
Maryland 4
Massachusetts 4
New York 3
Connecticut 2
Virginia 2
a. Given that the outcome of the war was beneficial to the colonists (at least from the British
point of view) and given the taxes that colonists paid relative to what people in Britain
paid, how did Parliament respond to this inequity in taxation in the years following the end
of the war?
b. Provide two examples of Parliamentary actions that were designed to address this inequity.
c. How did the colonists respond the Parliaments actions and why did they respond in the
ways that they did?
d. In what sense can we view this period of time as one where the relationship between Britain
and the colonies changed, moving from decentralized authority in the colonies to
centralized authority?

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