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 colonization of the Americas Beginning with the 1492 arrival of Christopher Columbus and continuing for over three centuries, the Spanish Empire would expand across the Caribbean Islands, half of South America, most of Central America and much of North America (including present day Mexico, Florida and the Southwestern and Pacific Coastal regions of the United States). It is estimated that during the colonial period (1492–1832), a total of 1.86 million Spaniards settled in the Americas and a further 3.5 million immigrated during the post-colonial era (1850–1950).