what did spain spend most of its new wealth on
Economic history of Spain Following the discovery of America and the colonial expansion in the Caribbean and Continental America, valuable agricultural products and mineral resources were introduced into Spain through regular trade routes. New products such as potatoes, tomatoes and corn had a long-lasting impact on the Spanish economy, but more importantly on European demographics. Gold and silver bullion from American mines were used by the Spanish Crown to pay for troops in the Netherlands and Italy, to maintain the emperor's forces in Germany and ships at sea, and to satisfy increasing consumer demand at home. However, the large volumes of precious metals from America led to inflation, which had a negative effect on the poorer part of the population, as goods became overpriced. This also hampered exports, as expensive goods could not compete in international markets. Moreover, the large cash inflows from silver hinder the industrial development in Spain as entrepreneurship seems to be dispensable.[1]
Spanish missions in the Americas At the start of theÂ Age of Discovery, European governments sent explorers to find trade routes to facilitate economic relations with Asia and Europe. During this time, these men found the new lands that could be used for the economic benefit of their home countries. In order to understand these new lands and the resources that might be available, explorers fostered relationships with the native people. This led to the colonization of the Americas. The Catholic church was an essential part of both the Spanish and Portuguese Empires so as the empires spread to new lands it was the duty of the King to be sure Christianity was spread into the New World.