Why Did the Colonists Fight When They Were Safe, Prosperous, and Free? Mark C

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Why Did the Colonists Fight When They Were Safe, Prosperous, and Free? Mark C. Schug

Teaching U.S. history can be daunting. I remember wondering at the end of some high school class periods whether my history students had understood or even attended to a word I had said. I felt at times that I might as well have been telling them fairy tales.

But despite my doubts about my own effectiveness, I never doubted the importance of U.S. history as a school subject. An American really is not well educated unless he or she has developed some sense of the country’s past. Knowledge of the past really can help to develop a sense of national identify among our country’s diverse citizens. It seems appropriate, therefore, that U.S. history—taught, typically, over six semesters at grades five, eight and eleven—holds a prominent place in the K-12 curriculum. For all its prominence, however, young people tend to regard U.S. history as remote and uninteresting, and many of them learn little from the courses they British troops attacked Charles Town, South Carolina, in 1780, aiming to gain control are required to take. But you have heard of the colonies as they moved north. Instead, they were forced to evacuate Charles all this before. The history of complaint Town (now Charleston) in 1782. is long. What to do? Turn our students loose an interest in a different possibility. It has Call it the “economic way of thinking.” so that they can learn history on their to do with using economics in the teach- It involves formulating “mysteries” and own, when it suits their fancy? Staff our ing of U.S. history. Not economics as a reasoning about them by means of a classrooms with clones of Mr. Kotter? long list of concepts embalmed in huge small set of powerful principles from Wait for legislators to drive the student- textbooks written for use in Econ 101 and economics. teacher ratio down to one-to-one? Myself, 102. Instead, I suggest, history teachers I can’t waive mandatory attendance laws, can do much to improve their instruction Applying the Economic Way of or impart a knack for stand-up comedy, or by drawing upon a particular approach Thinking to History hold out for utopia, and so I have taken to inquiry as practiced by economists. Here is an example of how the economic

M a r c h 2 0 0 7 61 way of thinking might be used to help and sold captive sailors into slavery. All Isles. Transportation and communica- students gain fresh insights into a com- this protection was provided at a rela- tions were slow. It took a long time for monly taught topic in U.S. history—the tively low cost to the colonists; in taxes anybody in London to learn of anything American Revolution. At first glance the per capita, they paid little—only 20 to that looked like wrongdoing in a colonial Revolution seems to have been inevitable. 25 percent of taxes paid by the average legislature or seaport, and a long time, A series of British initiatives—the Sugar English resident. again, to respond with efforts to inter- Act in 1764, the Stamp Act in 1765, the Second, on the eve of the Revolution, vene. English authorities, accordingly, Tea Act in 1773—touched off confronta- the colonists had become relatively pros- had been inclined to leave the colonists tions with England. With neither side perous. By today’s standards, colonial more or less alone, or to back away when willing to back down, the conflict pre- life was rough indeed. But by the stan- the colonists resisted an unpopular policy. dictably grew into a full-scale war. dards of their own time, the colonists When authorities did seek to intervene, But an inquisitive student of history, enjoyed a high quality of life and mate- the colonists often succeeded in using an perhaps one accustomed to using eco- rial well-being. Production had grown array of tactics including deception and nomic analysis, might wonder at the at high rates throughout the colonial bribery to carry on with their affairs as colonists’ decision to rebel. It was not period. The colonists lived longer and they saw fit. Moreover, the British sys- inevitable that the new American repub- better than most of their contemporaries tem of colonial administration was loose- lic would survive to become a nation. At in other places. Their incomes on aver- jointed, favoring local control. Colonial the war’s onset, nobody knew how things age were apparently as high as, or higher legislatures, acting with a measure of would turn out. The war occurred in the than, average incomes for people living democratic legitimacy, made most policy colonists’ “present,” and in pursuing the in England. Referring to data from 1774, decisions in the colonies. In these bodies, war, the colonists took enormous per- economic historians Gary M. Walton members of the upper legislative houses sonal, economic, and political risks. They and Hugh Rockhoff write, “Even today, were appointed by the Crown (as were could easily have been defeated and lost relatively few countries generate average colonial governors), but members of the their independence several times before income levels that approach the earn- lower legislative houses were elected. their victory in 1783. ings of free Americans on the eve of the It is by no means obvious, moreover, Revolution.”1 The Mystery why the Revolutionary War was fought at Third, in large measure, the colonists These three considerations raise a serious all. At least until 1775, radical separatists lived as free citizens. In the words of question. Economists assume that people in the colonies had failed to gain majority Samuel Eliot Morison, strive to act in their own best interest. But support among their countrymen for the how could this generalization apply in revolutionary cause. This isn’t much of a British subjects in America, the case of the American colonists? As surprise. As the colonists looked toward excepting of course the Negroes, they approached 1776, the colonists were the last quarter of the eighteenth century, were then [ca. 1763] the freest well off in nearly every way. They were they might have given serious thought people in the world….They protected by the English armed forces. to at least three powerful reasons not to argued and then they fought, not They were prosperous. They enjoyed a fight: they were safe, prosperous, and free. to obtain freedom but to confirm measure of political freedom envied by Let’s examine each of these points. the freedom they already had others throughout the Western world. First, except in remote areas, the colo- or claimed. They were… more Under these favorable circumstances, nists lived and worked in relative safety advanced in the practice of self- why would the colonists—English by about 1763, thanks to protection government than the mother citizens themselves—fight a revolution provided by England’s Royal Navy and country. There was slight pressure against Great Britain, one of the world’s ground troops. This was no small mat- from ancient custom, and few most powerful nations and, in many ter. Throughout the earlier colonial era, relics of feudalism….[After] respects, the wellspring of their freedom imperial rivals and Native Americans the Zenger libel case…in 1735, and prosperity? often posed serious threats to the colo- almost complete freedom of nists’ lives and property. The British speech, press, and assembly was The Guide to Economic spent heavily to protect the colonies from enjoyed. Trades and professions Reasoning French forces and their Indian allies dur- were open to the talented….The Having posed the mystery, how might ing the French and Indian War (1755- hand of government rested lightly we go about solving it? We could sim- 1763). And the Royal Navy protected on Americans.2 ply sift through various accounts of American shipping along the North the Revolutionary period, looking for American coast, in the Caribbean, and In part, this climate of freedom observations that seem to be relevant. in the Mediterranean, where Barbary reflected simple practicalities. The col- Searching about in that way might turn pirates conducted raids, stole cargoes, onies were a long way from the British up important bits and pieces of infor-

S o c i a l E d u c a t i o n 62 mation as well as interesting opinions. making choices. They were not acting out consumers in England. Second, England But an unguided, open-ended search of necessity or blindly, without regard provided the colonists with direct subsi- would amount to a weak search, lack- for consequences. They decided that dies for certain products. Bounties, for ing focus and direction. To gain the fighting the Revolution offered the best example, were paid to colonial producers advantages that come with focus and combination of benefits and costs they of indigo and also paid for several forest direction, scholars investigate problems could attain. To learn more, therefore, we products including tar, pitch, turpentine, from particular points of view, based should inquire further into the choices and lumber. And third, as mentioned on the assumptions and research tech- the colonists faced. earlier, the colonists received valuable niques of their disciplines. Historians military protection from British naval try to describe and explain events by 2. People’s choices involve costs. and land forces, paid for largely by tax- establishing accurate, well elaborated Decisions come with costs. Always. The payers in Britain. chronologies; geographers emphasize costs are obvious enough in the case of In thinking about costs, therefore, the importance of place. My approach decisions to buy goods or services. But colonists on the eve of war might well is derived from economics. It involves not all costs are dollar costs. Think have seen a big opportunity cost in losing applying one or more of six economic of someone who decides to go jogging British customers, losing income, and principles that we refer to as the Guide after school. This decision might seem losing protection provided under the to Economic Reasoning. Let’s see how to involve all benefits and no costs, umbrella of the British Empire. Yet, at the Guide to Economic Reasoning might especially for one who enjoys exercise some point, the colonists decided that cast new light on our mystery: Why did and values fitness. But it takes time to the benefits of fighting would outweigh the American colonists choose to fight go jogging, and that time could be used the costs. the Revolutionary War? in other ways. The cost of jogging after school thus might be dinner not prepared, 3. People respond to incentives in 1. People choose. homework not done, or a favorite televi- predictable ways. This principle may seem to state the sion show missed. Incentives are rewards that prompt peo- obvious, but it emphasizes two meanings While there are many kinds of cost, ple to make decisions and take action. that are not so obvious. First, economists economists stress the importance of One powerful incentive is money. It is claim that people manage their lives by opportunity cost. In any decision, the a powerful incentive because it can be making choices, even though they some- opportunity cost is the person’s second- exchanged for other things. But not all times prefer to believe that they do not. best choice. It is not every alternative incentives are monetary. Another sort of Think how often you hear people say not selected. After all, the list of alter- incentive has to do with the satisfaction that, in one situation or another, they natives in a given case is endless. The that comes from doing the right thing. had “no choice” but to act as they did. after-school exerciser could have done Many people perform acts of virtue In this respect, young people and adults all sorts of things instead of jogging. Of that involve no monetary rewards. They are much alike. Both are prone to deny all the possibilities, the opportunity cost donate blood and vital organs, pick up that they are making choices when that is the second-best alternative, the alterna- trash in a park or along the highway, and is exactly what they are doing. Both are tive or set of alternatives someone would show up to vote on Election Day. Some prone to explain certain actions of theirs have chosen next. people, including police officers and fire as a matter of necessity—perhaps one Questions of cost loom large in fighters, risk their lives daily for reasons imposed by others. Second, economists decisions to fight wars. This certainly that go beyond the salaries they earn. claim that, in making choices, people was true in the case of the American How did incentives bear on the case of act rationally. They act rationally in that Revolution. As colonial subjects, the fighting the American Revolution? Before they seek to obtain the best possible com- colonists enjoyed several benefits. By 1763, the colonists had often objected to bination of costs and benefits available choosing to fight, they risked losing tax and trade policies imposed by British to them under the circumstances. The these benefits. First, they risked losing authorities, but they also had succeeded circumstances may include the relative a guaranteed market for certain goods in resisting such policies in various ways. importance of the decision in question, they produced. For example, England’s After 1763, however, Britain imposed what the person making the decision restrictive trade policies embodied in the many new taxes and regulations and set knows, what it will cost to learn more, Navigation Acts provided that ships built about enforcing them more strictly. The and how much time there is in which to in New England would be sold directly new policies and enforcement procedures decide. to buyers in Britain. Colonial ship build- threatened to raise prices and reduce What does all of this have to do with the ers thus enjoyed favored status against income among the colonists; they also American Revolution? Using economic international competition. Other colo- marked a change in the climate of free- reasoning, we hypothesize that American nists also benefited by selling their prod- dom to which the colonists had become colonists approached the Revolution by ucts in the protected market provided by accustomed. Almost every colonist thus

M a r c h 2 0 0 7 63 felt a grievance: “debtors objected to the could impose taxes and other legislation Most economic historians argue that Currency Act; shippers and merchants on the colonists without their consent the colonists felt little incentive to break to the Sugar Act; pioneers to the Quebec created another strong incentive to fight. away from England until 1763. Until Act; politicians, printers, and gamblers A successful revolution would enable then, the number of enumerated prod- to the Stamp Act; retailers and smugglers citizens of the new republic to restore ucts had grown slowly over time. The to the Tea Act.”3 The losses that the new self-government. colonists would have bought most of their acts implied—in material well-being and manufactured goods from Britain even autonomy—created an incentive for the 4. People create economic without the Navigation Acts. And the colonists to fight. Successful revolution systems that influence individual colonists were generally able to ignore would enable them to secure rights and decisions. mercantilist laws regarding manufactur- benefits to which they felt entitled. Economic behavior occurs in a climate ing. But after 1763, the rules of the game Another incentive emerged as a of rules—formal and informal. The changed as the Crown and Parliament result of the defeat of the French in the “rules of the game” act as incentives and imposed new rules and became more French and Indian War. The French influence the choices people make in serious about enforcing them. Britain defeat changed the feelings of the colo- particular cases. Tax laws, for example, had, after all, paid for protecting the nists regarding their own security. They influence behavior. If a city government colonists during the French and Indian had regarded the French as dangerous places a heavy tax on the width of build- War, at a high cost to British taxpayers. rivals for land in the colonial West. ings, tall, narrow buildings soon begin In return, Britain sought ways to extract The defeat of the French eased fears of popping up. If a state government places more revenue from the colonies. rivalry; Americans who sought to settle a large tax on savings accounts, people Tighter enforcement of the Navigation in outlying areas would no longer face soon begin keeping less money in those Acts changed the incentives as the colo- French interference or competition. accounts. nists saw them. New restrictions imposed Many colonists were therefore eager to How might the rules of the game have by the Navigation Acts meant that the move west. But English authorities soon influenced the behavior of the colonists? colonists would pay higher prices for introduced new measures of their own British policy for the American colo- imports from outside the Empire. The to control the frontier and contain the nies was based on mercantilist theory. colonists also could anticipate paying colonial population largely within the Mercantilism refers to the idea that higher prices for goods that could only seaboard area. These measures included colonies have an obligation to assist the be purchased (legally) from Britain. the Royal Proclamation of 1763 and the mother country in gaining wealth. For American exporters could anticipate pay- Quebec Act of 1774, which restricted American colonists in the 1760s, this ing higher prices to ship their products. colonial settlement throughout a large meant providing Britain with many raw Then the British changed the rules area ranging from what is now Georgia materials it desired—iron and naval again. The Townshend Acts (1767) to the north shore of Lake Superior. This stores including tar, pitch, and tall tim- placed new taxes on English manufac- cordoning off of cheap, unsettled west- bers for ship masts. The colonies were tured goods entering America, includ- ern land struck many colonists as an act also expected to generate income by selling tea, glass, paper, and pigments for of theft. The prospect of regaining land ing colonial products through Britain to paint. The colonists reacted angrily with for settlement created another incentive other nations. And mercantilism meant boycotts and, eventually, the Boston Tea to fight. that American colonists were to buy Party, and Britain backed away from the There were other incentives as well. goods produced in Britain. Townshend taxes in 1770, except for the Traditionally, spending and tax decisions The Navigation Acts (1651, 1660, and tax on tea. The tax on tea was particu- had been made by the lower houses in 1663) were enacted to enforce mercan- larly offensive to the colonists. It repre- colonial legislatures. In most colonial tilist policy by protecting British and sented, in their eyes, Britain’s power to legislatures, members of the lower house colonial trade from competition. They tax the colonies even though the colo- were elected, as they were in England’s required that trade with the colonies be nies were not represented in Parliament. House of Commons. But as the Crown conducted only in vessels built, owned, Moreover, the tea tax allowed the East and Parliament increasingly exer- and commanded by British or American India Company to ship tea directly to cised direct control over taxation and colonists. All imports from Europe were the colonies, cutting American mer- other policies after 1773, the colonists to be shipped through British ports. chants out of the trade. It looked like a increasingly resented being treated as And certain commodities (“enumer- bad precedent. Whose trade would be “colonials”—or second-class citizens. In ated goods”) from the colonies could eliminated next? 1774 the Continental Congress published be exported only to Britain. The enu- In hindsight, it seems unlikely that a list of grievances, emphasizing ways merated goods included tobacco, sugar, these changes in tax and trade policies, in which colonial self-governance had cotton, indigo, and, eventually, rice, unpopular though they were, would suf- been eroded The idea that the British molasses, and naval stores. fice to make the case for rebellion. After

S o c i a l E d u c a t i o n 64 all, agriculture, not trade, was the most economy. Still, trade was a key factor in which path would leave them better off important sector of the colonial econ- the colonial economy from the beginning. in the future. Should they stay or should omy. Why would a far-flung rural popu- The colonial population was relatively they go? As we have seen, the colonists lace support a war stirred up by griev- small. A much larger market existed in had become accustomed to a relatively ances among colonial merchants? Here Britain and in Europe. To be successful, high standard of living. But changes in another change in the rules of the game the colonists needed to find products British policies put the future in doubt. becomes relevant—a change in policy that could be marketed successfully in Under British rule, the colonists faced regarding western land. In 1774, Britain Europe. Agricultural products were high what seemed to be diminishing pros- passed the Quebec Act (mentioned on the list, especially tobacco. Other top pects for continued growth in prosperity. above). This legislation greatly enlarged exports included flour, rice, fish, wheat, Their present and future standard of the size of Quebec, thus reducing west- and indigo. The colonies imported living seemed threatened. Before 1763, ern land areas available for settlement manufactured products—including lin- they had been, for the most part, self- by Americans; it also destroyed the ens, textiles, furniture, and agricultural governing and free to pursue their own western land claims of Massachusetts, tools—mostly from Britain. economic interests. After 1763, chang- Connecticut, and Virginia. What does voluntary trade have to do ing rules of the game threatened this Americans valued land ownership. For with the American Revolution? Colonial freedom in matters of trade, taxation, many, including many young adults of producers and shippers saw Britain’s and land ownership. fighting age, land ownership represented tightening of mercantile policy as an an opportunity for economic success in obstacle to free trade, which it was. While The Mystery Revisited the future. After the French and Indian British middle-men distributed tobacco As British subjects accustomed to lives War, however, many Americans felt that and rice, for example, the colonists could of safety, prosperity, and freedom under their prospects for success tied to land buy manufactured goods only through colonial rule, the New England colonists ownership were threatened. As Britain Britain. Such restrictions increased the might seem to have acted irrationally in took steps to prevent colonists from set- cost of doing business and reduced the committing themselves to a highly risky tling in lands to the west, the colonists standard of living on both sides of the revolution. They chose revolution none- feared that these lands would be sold Atlantic, enhancing the sense of grievance theless, seeking to secure prosperity and instead to wealthy British subjects. They and the drive for self-governance among self-governance in their own time and also feared that new controls on the fur the colonists. for the future. The prospect of securing trade would interfere with exploration those benefits eventually outweighed and settlement. 6. People’s choices have everything else. Taken together, these changes in the consequences that lie in the rules of the game created new incen- future. tives, shaping the decisions of individu- Despite messages from advertisers and Notes als who eventually came to support the self-help gurus urging us to “live for 1. Gary M. Walton and Hugh Rockoff. History of the American Economy, ninth edition (Mason, Ohio: Revolutionary War. today,” many people work hard at living South-Western/Thomson Learning, 2002), 112. for tomorrow. At least they give thought 2. Samuel Eliot Morison, The Oxford History of the American People (New York: Oxford University Press, 5. People gain when they trade to tomorrow as they strive to make deci- 1965), 172. voluntarily. sions that will benefit them in the future. 3. Walton and Rockoff, 133. Voluntarily here refers to lack of coer- For example, people tend to care for the cion. “Your money or your life!” does not cars they own better than they care for describe an instance of voluntary trade. cars they rent (in the history of the world, Gain refers to money gains, of course, but one economist has quipped, nobody ever also to other benefits. Examples of volun- washed a rented car). Why? Car owners tary trade are everywhere. Purchasing a have a long-term interest in caring for movie ticket, filling a car with gas, buying their cars, since maintenance bills and a stock—all involve voluntary trade in resale values are affected by the quality which people exchange something they of care they provide. Similarly, many value less for something they value more. homeowners care for their homes more That’s why the store clerk often thanks the lovingly than they cared for the apart- customer and the customer often thanks ments they once rented, again because Mark C. Schug is Professor Emeritus and asso- the clerk at the end of a transaction. they have a long-term interest in their ciate director of the Center for Economic Educa- The colonial economy was largely homes’ quality and market value. tion at the University of Wisconsin-Milwaukee. agricultural, and most voluntary From 1763 to 1775, the American exchanges took place in the domestic colonists had to make decisions about

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