American History: Outlines: Colonial Economy

Whatever early colonial prosperity there was resulted from trapping and trading in furs. In addition, the fishing industry was a primary source of wealth in Massachusetts. But throughout the colonies, people relied primarily on small farms and self-sufficiency. Households produced their own candles and soaps, preserved food, brewed beer and, in most cases, processed their own yarn to make cloth. In the few small cities and among the larger plantations of North and South Carolina and Virginia, some necessities and virtually all luxuries were imported -- in return for tobacco, rice and indigo exports, which produced large profits in England's London, Bristol and Liverpool markets. In these areas, trade and credit were essential to economic life.