ABSTRACT
This chapter describes trends in the growth of precious metals production in eighteenth century New Spain, assesses the relations between government and industry in the Bourbon era, analyzes the role of the mining sector in the colonial economy, and sketches the causes of the collapse of the mining industry after 1810. In fact, the late colonial mining industry was in such deep trouble that it survived by draining the public treasury and diverting resources from other sectors. Government promotion cannot explain a boom that did not occur; it can only explain an increase in physical output based on propping up marginal operations. However it is measured, the mining industry of New Spain entered into a crisis during the era of the Bourbon reforms, an economic crisis in which the declining market value of precious metals combined with rising costs of production. Government policy towards the mining industry not only recognized this crisis, but in part created it.
