It led to the creation of the bank of england with an

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Unformatted text preview: d to the creation of the Bank of England with an explicit agenda to …nance manufacturers. It led to an attack on existing overseas trading monopolies. It led to the ‘ Calicoe Acts’which heavily taxed the imports of calicoes - Indian cotton cloths. In 1721 the wearing of calicoes was actually made illegal. James A. Robinson (Harvard) The Emergence of Modern Economic Growth: A Comparative and30, 2009 Analysis: L September Historical 8 / 29 The Rise of the State Finally, it led to a dramatic strengthening of the capacity of the state. This is brilliantly described by John Brewer in his book The Sinews of Power. The taxation system was reorganized with a huge expansion of the excise tax bureaucracy. The bureaucracy was very modern in its structure and was not venal. Government expenditures and debt expanded. The main reason for this was to fund the navy. The navy fought wars but it also enforced the Navigation Acts, passed by Oliver Cromwell, which were a huge protectionist measure for the British merchant navy. James A. Robinson (Harvard) The Emergence of Modern Economic Growth: A Comparative and30, 2009 Analysis: L September Historical 9 / 29 The Expansion of the British State Source: O’Brien, Patrick K. (2005) “Fiscal and Financial Preconditions for the Rise of British Naval Hegemony 1485-1815,’’ LSE Economic History Working Papers 91/05. The Excise Bureaucracy ‘penetrated’ into society Why did the take-over of Parliament lead to generally better property rights? Both the Civil War and the Glorious Revolution were military victories for parliament, but the …rst led not to better institutions but to dictatorship by Oliver Cromwell. This helps to explain why after 1688, parliament favored institutional change to strengthen its’power, but also maintained the monarchy as a source of checks and balances. This is the argument of North and Weingast (1989) who argue that the change in institutions, by giving parliament more power, created multiple veto-players making predation against the rest of society harder - the key was the balance of power between parliam...
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