American War of Independence what-if...

[Senmut]

Okay, it is 1780, and the British fight to retain the American Colonies is becoming ever more a drag on the economy. Then, unexpectedly, there is a massive new gold discovery in Britain. Enough to pay the bills, and keep the army/navy in the field, while our ally, France, totters closer to bankruptcy. George III's war effort just got a shot in the arm.
Whither the war, and history?

 

[Rufus Shinra]

Code Geass.

 

[Senmut]

?

 

[Scottty]

It might well mean that the Colonies are considered economically unimportant, if there's suddenly a very productive gold mine somewhere in Britain.

But this could turn into a "resource curse".

 

[Senmut]

It might well mean that the Colonies are considered economically unimportant, if there's suddenly a very productive gold mine somewhere in Britain.

But this could turn into a "resource curse".

Could you define "resource curse" as you see it?

 

[Scottty]

Could you define "resource curse" as you see it?

An abundant, valuable resource that a country is tempted to build its entire economy around, with no industries otherwise. When that resource runs out, or becomes obsolete, that people's entire economy can collapse.

Let's start with an ancient example:
'For mithril,' answered Gandalf. `The wealth of Moria was not in gold and jewels, the toys of the Dwarves; nor in iron, their servant. Such things they found here, it is true, especially iron; but they did not need to delve for them: all things that they desired they could obtain in traffic. For here alone in the world was found Moria-silver, or true-silver as some have called it: mithril is the Elvish name. The Dwarves have a name which they do not tell. Its worth was ten times that of gold, and now it is beyond price; for little is left above ground, and even the Orcs dare not delve here for it. The lodes lead away north towards Caradhras, and down to darkness. The Dwarves tell no tale; but even as mithril was the foundation of their wealth, so also it was their destruction: they delved too greedily and too deep, and disturbed that from which they fled, Durin's Bane. Of what they brought to light the Orcs have gathered nearly all, and given it in tribute to Sauron, who covets it.
When you stop making anything for yourself, because you have a money fountain, in the long run that leads to ruin.

Later in the Third Age, the Longbeard Dwarves appear to have learned the lesson, and built their new prosperity not on crude resource-extraction, but on their own skilled artisanship:

"You should see the waterways of Dale, Frodo, and the fountains, and the pools! You should see the stone-paved roads of many colours! And the halls and cavernous streets under the earth with arches carved like trees; and the terraces and towers upon the Mountain's sides! Then you would see that we have not been idle."