The Tea Act was a government bailout for a company on the brink of - TopicsExpress

The Tea Act was a government bailout for a company on the brink of financial collapse, the flailing East India Company, which was deemed to be, in modern terms, “too big to fail.” The legislation gave the East India Company a virtual monopoly on the American tea trade, allowing it to bypass colonial merchants as middlemen and to even undercut the price of smuggled Dutch tea, which was widely consumed in the colonies. Thus, the Tea Act directly threatened the vested commercial interests of Boston’s wealthy merchants and smugglers, such as John Hancock, who fomented the revolt.

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