American Independence

After the American Revolutionary, United States established itself as an independence nation. The United States become a strong nation where market evolves over the course of time. “Significant institutional evolution and even highly dysfunctional institutions can be successfully transformed. For example, Botswana managed to build a functioning democracy after its independence from Britain and become the fastest-growing country in the world.” (Acemoglu) This is significance because it resembles how the US changed to a better nation in order recover their market. Upon separation from British’s ruling, the US were immediately not better off. As discussed in lecture, the US faced a slow production, and there was no financial system yet that dealing with inflation of price. One of the economic declines included “imports exceeded exports and led to a drain of specie from the country.” (Atack) This mean that if the export of a country is less than their export, then the amount which they consumed is more than …show more content…
They wouldn’t be able to expand to the west without British permission. “Americans wanted to access to Indian lands formerly protected by the French, while the British wanted only peace with the natives so that military expenditures could be reduced.” (Atack) During this time period, British is suffered greatly from the war against French. This is significance because British reason for peace with the native is to keep in check with America colonies and do not want them to expand their power. The American Revolution was inevitable as long as there is opposing force. “Institutional change will happen either when groups that favor changing become powerful enough to impose it on the potential losers.” (Acemoglu) This results in American disagreement against British restriction. Without the America Revolution war, US would not adapt their own institution that supports economic