page_title: Early impact of Mesoamerican goods in Iberian society
section_title: Economic impact
hierarchical_section_title: Early impact of Mesoamerican goods in Iberian society / Non-social consequences / Economic impact
caption_attribution_description: SPANISH AMERICA, PERU MINT, FERDINAND VII 1819 ---2 REALES b
context_page_description: The early impact of Mesoamerican goods on Iberian society had a unique effect on European societies, particularly in Spain and Portugal. The introduction of American "miracle foods" was instrumental in pulling the Iberian population out of the famine and hunger that was common in the 16th century. Maize, potatoes, turkey, squash, beans, and tomatoes were all incorporated into existing Spanish and Portuguese cuisine styles. Equally important was the impact of coffee and sugar cane growing in the New World. Along with the impact from food, the introduction of new goods also altered how Iberian society worked. One can categorize the impacts of these New World goods and foods based on their influence over the state, the economy, religious institutions, and the culture of the time. The power and influence of the state grew as external entities became dependent on Spain for these New Goods in the early 16th century. The economies of both Portugal and Spain saw an enormous increase in power as a result of trading these American goods.
context_section_description: Spain and Portugal, having been the first two European nations to begin trading New World goods, developed impressive economies as a result of their control over the trade of American goods and foods in the early 16th century.
  Cravings for New World stimulants such as coffee and sugar may have motivated people to work harder to obtain money to supply these new habits. Along with this, the accessory implements that were necessary for many of these new goods (such as tobaccos and coffee) led to a new professions aimed at manufacturing clay pipes, snuffboxes, porcelain chocolate pots etc.
  The Spanish and Portuguese capitalized upon every opportunity to extract revenue back to their empires; utilizing forced labor. When the Pope banned the use of forced labor by the natives, Spanish and Portuguese entrepreneurs turned to the African Slavery. The demand for New World goods, such as chocolate, led to an enormous growth in the transatlantic slave trade during the 16th and 17th centuries.The slave trade had devastating effects on the societies of several African nations. The Spanish crown applied the tactic of extraction to keep cost at ultimate low, which led to political corruption in their colonies and back at home. Patch summarizes it as, “an entire commercial system based on government official came into existence.” Spain extractive method of its colonies would soon be problematic and outdated, as new global players would become involved in the Americas. The Spanish colonial system and economic dependency for raw materials would hinder Spain’s commercial markets. Spain would place less emphasis on their colonies in North America due to its lack of mineral wealth and would use them to as buffers to protect ports and other colonies further south. Weber highlights the flaw when stating, “The economic malaise that affected Spain’s North American colonies reflected the weakness of the Spanish economy itself, built traditionally on the exportation of raw materials and the importation of manufactured goods.” Spanish economy back at home, spiraling with inflation, would become dependent upon foreign imports and manufactured goods. The significant amount of silver brought back to Spain and Portugal created inflation in Europe. For Spain, the period is referred to as Spanish price revolution. the Spanish inflation had raised domestic manufactures and made them uncompetitive. Spain’s colonial agenda of extraction would lead to its inability to supply its colonies and subjects at home. Weber builds upon the Spanish inability to capitalize commercial markets when stating, “The cost of transportation plus profits for numerous middlemen and additional internal custom duties (alcabalas) along the way drove the price of some items to many time their Verecruz or Mexico City value by the time they reached the frontier.” The crown’s inability to establish efficient trading route and placement of high tariffs would discourage merchants and traders from legitimate business practices. Spain’s colonies in the Americas would soon suffer as merchants and traders would turn to other forms of trade. Weber summarizes it when stating, “For suppliers and consumers alike, such artificially high prices made smuggling so attractive that perhaps two-thirds of all commerce throughout the Spanish empire consisted of illegal trade, much of it with foreigner… it increased as English and French merchants grew more numerous and proximate.”
caption: Spanish Currency
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