USA HISTORY

Detailed explanation-1: -Why didn’t Spain’s economy benefit from the gold and silver from the Americas? They had to send all the money back to pay their debts. How was Philip typical of an absolute monarch? He believed in divine right-God created the monarchy to act as a representative of God.

Detailed explanation-2: -The gold was used by the Spanish monarchy to pay off its debts and also to fund its ‘religious’ wars. Therefore, gold started to trickle out to other European countries who benefited from the Spanish wealth.

Detailed explanation-3: -After subjugating the Aztec and Inca Empires, the Spanish began mining the ample gold and silver in Mexico, Central America, and South America. Over the next 300 years, Spain’s wealth grew as they plundered the resources of the Americas, transporting the goods back to Europe to fuel a global economy of trade.

Detailed explanation-4: -Spaniards at the time of the Age of Discovery discovered vast amounts of silver, much of which was from the Potosí silver mines, to fuel their trade economy. Potosí’s deposits were rich and Spanish American silver mines were the world’s cheapest sources of it.