Economic System developed by silver

With the discovery of silver in the Americas, its value and availability skyrocketed, leading to a higher demand. This increased demand created need for increased labor. This caused Spanish authorities to create the mita system based on the Inca practice of requisitioning draft labor. 1/7 of the male population of native villages were required to work for the Spanish. Although they were paid for their work, the pay was very low and the conditions they worked in were very harsh. The silver mined in the Americas powered the economy in the Americas and stimulated the world economy by shipping it overseas. The production of silver produced profits for private investors as well as the Spanish government. The Spanish government took 1/5 of the silver profits, essentially a tax known as the quinto. Ultimately, the discovery of silver in the Americas not only stimulated the economy of the Americas, but strengthened the economy of Europe and the rest of the world as well through intense trade.

Silver