The economic crisis after the Mexican War of Independence was mainly due to the fact that the Spanish merchants returned to Spain with their money, overthrowing the country.
After achieving independence, Mexico faced many economic difficulties. Independence from Spain brought consequences for which Mexicans were not prepared.
In addition, many of the productive silver mines were destroyed during the insurgency and lost Spain as a mercury supplier.
Most of the patterns of wealth in the colonial era continued in the first half of the nineteenth century, exacerbating the Mexican social and economic crisis. These conflicts worsened the crisis.
Inequalities in society only deepened during the time of the economic crisis. The lack of good administration before so many needs in the country only sharpened the whole problem.
By the end of the war, the Spaniards had withdrawn all their money from the country. The struggle also resulted in the death of 10% of the production population of that time; The production was almost non-existent.
Also, the new government had to recognize and face an external debt of about 45 million pesos. In addition to this, the crisis only deepened after the civil wars that took place between the federalists and centralists.
The post-independence economic crisis
Background
Instead of the insurgency becoming a social revolution, in the end it allowed the conservative forces in the already independent Mexico to remain at the top of the economic and social system.
In order to finance the war of independence, it was decided to implement several previously non-existent taxes. Among these new taxes was the rule that imported products should have a 15% tax. This situation resulted in several bankruptcies and bankruptcies.
Although independence may have brought great economic growth in Mexico since the Spanish crown was not sovereign, Mexico's economic position at 1,800 was better than it would be in the next 100 years.
At the end of the colonial era there was no national market, only poorly designed and regional markets. The majority of the population was poor and peasantry who worked small plots to subsist or worked for very low wages.
The rest of the population were urban residents, of whom the majority were unemployed or worked in a small artisan sector.
A large part of the military that acted in the independence became bandits; They robbed livestock, assaulted the roads, and terrorized the inhabitants.
Although New Spain had been a major producer of silver and the largest source of revenue for the Spanish crown, Mexico stopped producing silver in significant quantities for a long time, even until the late nineteenth century.
The poor transport and lack of infrastructure, the disappearance of a ready source of mercury from Spain, and the deterioration and destruction of the large mines meant that the engine of the Mexican economy was immediately stopped.
The Mexican post-independence period was organized as a Federal Republic. This Mexican state was a poor institution, with regional struggles between federalism and a rather poor central government. For this reason, the situation of this new Republic could not promote development and economic growth.
Post-independence republican governments were never able to control and rectify the disorders and insecurity that were a consequence of the social problems and tensions that occurred in the past.
Problems in the main economic sectors
The mining and agricultural industries were the most affected by the armed struggle.
These sectors were completely abandoned economically. Virtually all the revenues and the vast majority of Mexico's wealth came from mining and silver.
To encourage the exploitation of silver in this area, the decision was taken to lower taxes and allow free import for the production of the mineral. Taxes on imported items were eliminated to promote foreign investment.
After the disappearance of Spain in this sector, the English showed a great interest in this Mexican industry.
Nevertheless all the necessary infrastructure to realize the exploitation was very precarious; Besides that it was not in good condition as a result of the armed struggle. This English investment was a loss that did not work.
The agricultural sector also suffered the consequences of the war. The most productive fields were destroyed by both sides during the fight.
At this time irrigation canals were destroyed, warehouses and barns were looted, cattle were stolen and crops were burned.
Added to the destruction of the fields, was a lack of quite serious machinery. The whole crisis that the nation was going through made impossible the much-needed investment in this area.
When independence was achieved, the Spaniards were the ones who lost their lands, since the Creoles and the clergy were able to preserve their properties.
At this time the hacienda prevailed as the only form of property; Its sources of credit were mortgages with the church, which charged interest and generally stayed with the land.
Decreased Population
Another of the consequences of the war was the decline of the population. This was most notable in the largest and most important cities such as Mexico City, Guadalajara and Puebla; Its population was practically decimated.
The urban population of the small artisan sector, as well as workers in the mining industry and the textile industry were unemployed as a result of the war.
The demand for agricultural products fell sharply as the population had also declined in excessive quantities. This situation also contributed to the complete abandonment of the agricultural sector.
Another situation that worsened the crisis was the disease epidemics in Mexico in the nineteenth century. Diseases such as plague, malaria, typhus, and cholera wreak havoc on society and the population during this period.
References
- Economic history of Mexico. Retrieved from wikipedia.org.