In a similar economic revolution, the colonies outgrew their mercantile relationship with the mother country and developed an expanding capitalist system of their own. In England, the common view was that the colonies only purpose was to compliment and support the homeland. This resulted in a series of laws and protocols called the mercantile system. While this system had its benefits, it placed harsh restrictions on which the Americans could trade with. For example, as directed by the Navigation laws, Virginia tobacco planters who played by the rules could only sell their products to England, even if other countries were offering a higher price. The Americans answer to this was to largely ignore the mercantile system and smuggle their products to other ports.

Building on English foundations of political liberty, the colonists extended the concepts of liberty and self-government far beyond those envisioned in the mother country. While Englishmen had some representation in their parliament, Americans took the system further. All colonies had some form of a two-house parliament system. Some, like New York, had governors appointed by the crown. Others, like Rhode Island, elected their own. Local government also varied between the colonies. The southern states had a strong County government, while the New England colonies relied on town-meeting government. In either case, voting was reserved to land-owning white men.

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