Pitt's Economic Policies

Question 1

What was the background of Pitt economic policies?

Answer 1

• Inherited a large debt from US War (Independence)
• There was heavy smuggling
• Pitt supported Smith’s free trade, competition and specialization.
• Pitt was more similar to classical liberal (economically)

Question 2

What was the Hovering Act?

Answer 2

1787, allowed the seizure of ships up to 12 miles of coast, to help prevent smuggling.

Question 3

What else did Pitt reduce (was it a success)?

Answer 3

The tax on tea and spirits, this helped reduce smuggling, more imported legally which increased tax paid.

(Success)

Question 4

What was Window Tax (was it a success)?

Answer 4

Taxing people based on the number of windows.

This was partly successful, was ridiculed and affected growing glass industry - people would just board up windows.

Question 5

What was ‘sinking fund’?

Answer 5

Investing savings which could help pay off debt

Was partly successful, as it helped them outspend France and due to another war with France it didn’t fully work.

Question 6

What other policies did he introduce?

Answer 6

Negotiated a trade treaty with France 1786, allowing goods to trade freely.

Pitt tried to create free trade with Ireland, however it didn’t pass.

Question 7

How much did he reduce national debt by?

Answer 7

£10 million by 1786