This podcast episode unravels the mystery of the frequent shipwrecks that plagued the Manila-Acapulco trade route in the 1500s, highlighting the role of economic factors, perilous natural conditions, and misaligned incentives, such as bribery and protectionist policies, in this historical maritime debacle.
Takeaways
• The Manila galleon trade route was a major maritime trade route connecting Manila in the Philippines and Acapulco in Mexico.
• The Manila galleons were massive wooden ships carrying goods such as porcelain, silks, textiles, and lacquerware.
• The journey from the Philippines to Mexico was dangerous, with a high rate of shipwrecks due to unpredictable weather, particularly typhoons.
• Protectionist trade policies by the Spanish government led to a shortage of ships, which encouraged merchants to bribe captains to overload their ships and sail later in the year, increasing the risk of shipwrecks.
• Bribery and corruption undermined the efficiency of the trade route, resulting in misaligned incentives and a significant number of shipwrecks.
