Impact of The Proclamation of 1763

By Tara Rapoport

Proclamation of 1763 has huge Impact on Virginia's economic systems

The Proclamation of 1763 had a huge impact on the 3 economic systems of Virginia.

The Proclamation of 1763 was made on October 7th, 1763 by King George III to acknowledge the "brave" soldiers who fought in the French and Indian War. To reward the soldiers, they each got a sum of land. In the 21st century, the land was a lot, but in that time, it was not too much. In addition to acknowledging the soldiers, King George III also made the Proclamation for 2 other reasons; to establish "Indian" territory, and to restrict any colonist from making purchases of Native land. He also made sure, in the Proclamation, that any persons seated on land, that was reserved for the Natives, would be thrown off. King George the III also claims that "great Frauds and Abuses have been committed in purchasing Lands of the 'Indians'"

In colonial Virginia, where the House of Burgesses was established, there are 3 economic systems; consumption, production, and distribution. Consumption is the process of buying products put up to sale by the producer. A consumer is the person who buys, or consumes the products. The consumer is greatly relied on by the producer, who, if nobody buys their products, will not get any money to buy food and clothing. Production is the process producing products for consumers to buy. Producers produce, or create, the products that consumers might need or want. Just as consumers are important to producers, producers are important to consumers. If there were no producers, nobody would have the goods and services they need to survive in a new country. Then there's distribution. Distribution is the process of distributing, or giving out products and services to stores for the consumer to buy. if nobody distributed to markets, the consumers would have no goods to buy, the producer would get no money, and the store would be shut down. As you may note, these systems are very important to the economy.

The Proclamation had a huge impact on the economic systems of Virginia. Because of the proclamation, production rates went down. In order to produce tobacco, the producer needs space. If they can't buy lands from the Natives, they can't produce tobacco, the consumer can't buy it, the producer gets no money, and the store gets shut down, because nobody is coming to it. All because of the laws the Proclamation established. If no stores have goods for consumers to buy, the consumption rate goes down, effecting the process of consumption. If no tobacco is produced, the disributers have no tobacco to produce. because the producer can not expand his land, there is a scarcity of tobacco. The same will happen to other producers whose goods require land and space. Therefore, the Proclamation 1763 impacts the economic systems of Virginia.