Lesson 7: The Costs and Benefits of American Independence

The students work in groups to discuss changes in the relationship between Britain and the American colonies. By the 1760s, the relationship between the British Parliament and the colonists was fraught with tension and resistance. Many colonists chose to take actions to separate from England in response to the Proclamation of 1763 and Parliament's decision to seek additional tax revenue to fund the costs of providing defense and protection in colonial America. Through the application of economic reasoning, this lesson explains why the colonists chose independence from the mother country.


Alternatives, Benefits, Costs, Taxation
National Content Standards in Economics:
  • Standard #4: Incentives
  • Standard #16: Role of Government and Market Failure
  • Standard #17: Government Failure