SHIFT IN THE ECONOMY 16 th -17 th Century 16 th -17 th Century

IN THE RENAISSANCE THE GUILDS Guilds and powerful families took over regional governments: Guilds and powerful families took over regional governments: Mediterranean trade enriched guild members and merchant families Mediterranean trade enriched guild members and merchant families HRE provided a vast market for manufactured goods of the Italian guilds (Commenda) HRE provided a vast market for manufactured goods of the Italian guilds (Commenda) City-states had enough agriculture to sustain their populations City-states had enough agriculture to sustain their populations

Northern Italian cities were communes, associations of free men seeking complete political and economic independence from local nobles Northern Italian cities were communes, associations of free men seeking complete political and economic independence from local nobles Marriage vows often sealed business contracts between the rural nobility and the mercantile aristocracy creating an urban nobility Marriage vows often sealed business contracts between the rural nobility and the mercantile aristocracy creating an urban nobility

URBAN NOBILITY (POPOLO GRASSO) Citizenship based on property qualification, years of residence within the city, and social connections Citizenship based on property qualification, years of residence within the city, and social connections A new force, (popolo minuto), disenfranchised and heavily taxed, wanted places in the communal government A new force, (popolo minuto), disenfranchised and heavily taxed, wanted places in the communal government Also exclusive, never won the support of other groups Also exclusive, never won the support of other groups By 1300, signori (despots) or oligarchies (rule of merchant aristocracies) had triumphed everywhere

PEASANTS VS. NOBILITY Land was economic basis of life/foundation of status/power of nobility Land was economic basis of life/foundation of status/power of nobility Over ¾ lived in country Over ¾ lived in country Most people who lived on land were poor/dependent Most people who lived on land were poor/dependent Rural dependence varied – everywhere Rural dependence varied – everywhere The class that owned most of land controlled local government/courts The class that owned most of land controlled local government/courts Great Britain, all farmers had rights of citizens; presided over landowners, on continent, taxes on tillers of soil Great Britain, all farmers had rights of citizens; presided over landowners, on continent, taxes on tillers of soil

PEASANTS AND SERFS Obligations of Peasants: power of landlord increased as moved from west-east Obligations of Peasants: power of landlord increased as moved from west-east France: Peasants owned land- a few serfs France: Peasants owned land- a few serfs Nearly all peasants subject to: Nearly all peasants subject to: banalities feudal dues: required pay-per-use of lord’s (seigneur) oven, mill banalities feudal dues: required pay-per-use of lord’s (seigneur) oven, mill corvee- forced labor, corvee- forced labor, many peasants were dependent many peasants were dependent Prussia/Austria: Nobles controlled them almost completely Prussia/Austria: Nobles controlled them almost completely robot: required serfs to provide service to the lords robot: required serfs to provide service to the lords

Russia Russia Serfs were worst off – wealth made by “souls,” male serfs as economic objects – Serfs were worst off – wealth made by “souls,” male serfs as economic objects – Barshchina -could demand 6 days of labor –little difference from slavery Barshchina -could demand 6 days of labor –little difference from slavery Ottoman empire: Peasants fee, landowner exerted power Peasants fee, landowner exerted power cift, domain of lord managed through an overseer – gradually became more commercial cift, domain of lord managed through an overseer – gradually became more commercial Serfs had rights because of lack of labor, but still quite dependent Serfs had rights because of lack of labor, but still quite dependent

THE COMMERCIAL REVOLUTION (C ) Roots were in the Middle Ages in The Hanseatic League, Roots were in the Middle Ages in The Hanseatic League, A mercantile association of numerous cities and towns A mercantile association of numerous cities and towns Evolved from within the German states Evolved from within the German states Eventually controlled trade in much of northern Europe well into the 16th century Eventually controlled trade in much of northern Europe well into the 16th century

POPULATION GROWTH: Population growth: 70 million in 1500; 90 million in 1600 ; thus, more consumers existed Population growth: 70 million in 1500; 90 million in 1600 ; thus, more consumers existed

“ PRICE REVOLUTION” (long slow upward trend in prices) (long slow upward trend in prices) Increased food prices, increased volume of money, and the influx of gold & silver Increased food prices, increased volume of money, and the influx of gold & silver Increased prices meant increase in supply of goods Increased prices meant increase in supply of goods States and emerging empires sought to increase their economic power States and emerging empires sought to increase their economic power Rise in capitalism (laissez-faire): entrepreneurs invested money in their own businesses or other business ventures. Rise in capitalism (laissez-faire): entrepreneurs invested money in their own businesses or other business ventures. The middle class (bourgeoisie) led the way. The middle class (bourgeoisie) led the way.

BANKING The Fuggers in Germany and the Medicis in Italy were among the leading bankers in Europe The Fuggers in Germany and the Medicis in Italy were among the leading bankers in Europe Funded countless economic activities Funded countless economic activities Antwerp in Flanders became the banking and commercial center of Europe in the 16th century Amsterdam became the financial center in the 17th century after the successful Dutch Revolt against Spain Amsterdam became the financial center in the 17th century after the successful Dutch Revolt against Spain

CHARTERED COMPANIES State provided monopolies in certain areas (e.g. British East India Co. and the Dutch East India Co. ) State provided monopolies in certain areas (e.g. British East India Co. and the Dutch East India Co. ) These chartered companies became, in effect, a state within a state with large fleets of ships and military power. These chartered companies became, in effect, a state within a state with large fleets of ships and military power.

JOINT- STOCK COMPANIES Investors pooled resources for a common purpose (forerunner of the modern corporation) Investors pooled resources for a common purpose (forerunner of the modern corporation) One of the early prime examples of capitalism One of the early prime examples of capitalism Stock markets emerged : e.g., the bourse in Antwerp Stock markets emerged : e.g., the bourse in Antwerp Investors financed a company by purchasing shares of stock; as the value of the company grew so did the value of the stock, and thus the investors’ profit Investors financed a company by purchasing shares of stock; as the value of the company grew so did the value of the stock, and thus the investors’ profit

NEW PRODUCT DEMANDS New industries : cloth production, mining, printing, book trade, shipbuilding, cannons and muskets New industries : cloth production, mining, printing, book trade, shipbuilding, cannons and muskets New consumer goods: sugar (most important), rice, and tea New consumer goods: sugar (most important), rice, and tea Sugar production resulted in an enormous slave trade in the Atlantic Sugar production resulted in an enormous slave trade in the Atlantic

REVOLUTION IN AGRICULTURE Goal: ensure local food supply Goal: ensure local food supply Peasants resist changes, which might endanger food supply. Peasants resist changes, which might endanger food supply. Poor harvests increase prices: Poor harvests increase prices: Rising grain prices gave landlords an opportunity to improve their incomes and lifestyle: Landlords commercialize agriculture to increase profits. Rising grain prices gave landlords an opportunity to improve their incomes and lifestyle: Landlords commercialize agriculture to increase profits.

NEW METHODS Enclosures Replaces Open-Field Method: Enclosures Replaces Open-Field Method: Agricultural innovations were incompatible with the existing organization of land in England. Agricultural innovations were incompatible with the existing organization of land in England. In the Middle Ages: decisions about what crops would be planted were made communally: In the Middle Ages: decisions about what crops would be planted were made communally: System discouraged improvement and favors poorer farmers. System discouraged improvement and favors poorer farmers. Goal: steady, but not growing supply of food. Goal: steady, but not growing supply of food. Fencing of common lands, Fencing of common lands, Reclamation of previously untiled waste Reclamation of previously untiled waste Transformation of strips into block fields occurs Transformation of strips into block fields occurs

Improvements characterized Europe- west of Elbe Improvements characterized Europe- west of Elbe Dutch farming -efficient Dutch farming -efficient France France Enclosures restricted Enclosures restricted Talks of improving agriculture: increased ruling incomes, more food, less unrest Talks of improving agriculture: increased ruling incomes, more food, less unrest

Improvements in Eastern Europe Improvements in Eastern Europe Prussia/ Austria/Poland/Russia: Prussia/ Austria/Poland/Russia: Improvement limited Improvement limited More land tilled to produce more labor from serfs More land tilled to produce more labor from serfs Nobles less ambitious/successful Nobles less ambitious/successful Only significant introduction was of maize/potato Only significant introduction was of maize/potato

PUTTING OUT The “putting - out” Industry emerged in the countryside for the production of cloth The “putting - out” Industry emerged in the countryside for the production of cloth Some farmers, displaced by enclosures, supplemented their income by producing textiles at home Some farmers, displaced by enclosures, supplemented their income by producing textiles at home

THE GROWTH OF CITIES Big changes happened in patterns of city growth between Big changes happened in patterns of city growth between : 156 cities over 10K, only 4 (Paris/Milan/Naples/Venice) over 100K 1500: 156 cities over 10K, only 4 (Paris/Milan/Naples/Venice) over 100K London, Paris, Berlin, Warsaw, St. Petersburg all increased – still, in France/ Britain, less than 20% lived in cites London, Paris, Berlin, Warsaw, St. Petersburg all increased – still, in France/ Britain, less than 20% lived in cites Growth of Capitals and Ports: Capital/ports grew most from – reflects success: monarchical state building (armies/courts/groups that lived there) Growth of Capitals and Ports: Capital/ports grew most from – reflects success: monarchical state building (armies/courts/groups that lived there) : cities of less than 40,000 people declined : cities of less than 40,000 people declined many landlocked trading centers, medieval industrial cities, ecclesiastical centers – not significant anymore many landlocked trading centers, medieval industrial cities, ecclesiastical centers – not significant anymore Rural labor was cheaper than urban labor Rural labor was cheaper than urban labor Cities w/ concentrations of labor declined as production moved into the country Cities w/ concentrations of labor declined as production moved into the country Major shift in urban concentration from southern Mediterranean to north Major shift in urban concentration from southern Mediterranean to north

In 1825, population began to increase steadily: demand/supply rose together In 1825, population began to increase steadily: demand/supply rose together 18 th : million 18 th : million By 1800: 190 By 1800: 190 By 1850: 260 million By 1850: 260 million more demands for resources/existing social organization: Fewer wars/epidemics, Better hygiene/ medicine may have helped - reason was food supply/potato, Old Regime outgrew its traditional social structure

18 TH CENTURY ECONOMY REVOLUTION IN AGRICULTURE Goal: ensure local food supply Goal: ensure local food supply Peasants resist changes, which might endanger food supply. Peasants resist changes, which might endanger food supply. Poor harvests increase prices Poor harvests increase prices B read prices grew slowly during 18 th century due to population growth. B read prices grew slowly during 18 th century due to population growth. Rising grain prices gave landlords an opportunity to improve their incomes and lifestyle: Rising grain prices gave landlords an opportunity to improve their incomes and lifestyle: Landlords commercialize agriculture to increase profits. Landlords commercialize agriculture to increase profits.

NEW CROPS Pressures of population brought new cultivation Pressures of population brought new cultivation Dutch landlords/farmers built better dikes/drain land/new soil-restoring crops Dutch landlords/farmers built better dikes/drain land/new soil-restoring crops

English Inventions and Inventors English Inventions and Inventors Jethro Tull Jethro Tull  Iron plows and drill planting Charles “Turnip” Townsend Charles “Turnip” Townsend  Crop rotation  Cattle (winter)  Manure  + Food Robert Bakewell Robert Bakewell  Animal breeding technology Annals of Agriculture : Arthur Young Annals of Agriculture : Arthur Young  Documented 18 th century agricultural breakthroughs

THE INDUSTRIAL REVOLUTION OF THE EIGHTEENTH CENTURY : beginning of industrialization of European economy : beginning of industrialization of European economy Prior to 1750 growing economies reached plateau Prior to 1750 growing economies reached plateau Industrialization gave production of new goods/services than ever before Industrialization gave production of new goods/services than ever before Demanded new skills/discipline/large labor force; demands made demands Demanded new skills/discipline/large labor force; demands made demands Industrialization raised standard of living/overcame poverty Industrialization raised standard of living/overcame poverty More control over nature, but started problems w/ the environment More control over nature, but started problems w/ the environment

INDUSTRIAL LEADERSHIP OF GREAT BRITAIN Home of Industrial Rev. until 1850 Home of Industrial Rev. until 1850 England takes lead in consumer revolution England takes lead in consumer revolution Large cities, Large cities, newspaper ads newspaper ads Mobile social system, Mobile social system, Free trade (no internal tolls) Free trade (no internal tolls) large deposits of coal and iron ore, large deposits of coal and iron ore, a stable political structure, a stable political structure, Sound financial system. Sound financial system.

A REVOLUTION IN CONSUMPTION New machinery/work force/more factories; vast increase in demands/possibilities New machinery/work force/more factories; vast increase in demands/possibilities Machines and demand made consumer goods; demand sparked invention Machines and demand made consumer goods; demand sparked invention Dutch prosperity led way for new forms of luxury/consumer goods Dutch prosperity led way for new forms of luxury/consumer goods more people w/more disposable money more people w/more disposable money

Consumption rev. wasn’t automatic– people became persuaded they needed goods Consumption rev. wasn’t automatic– people became persuaded they needed goods Josiah Wedgwood Josiah Wedgwood  porcelain manufacturer, sold to aristocracy/royalty – made cheaper version, sold to middle class: Change of style became institutionalized Change of style became institutionalized If new goods could be produced, there was demand; learned from failures If new goods could be produced, there was demand; learned from failures Expansion of consumption challenged social assumptions of the day

EMERGENCE OF NEW CITIES AND GROWTH OF SMALL TOWNS In 1750, new pattern: large cities declined, new/existing smaller cities grew – factors: In 1750, new pattern: large cities declined, new/existing smaller cities grew – factors: General overall population increase General overall population increase Early stages of Indus. Rev. in country; cities emerged around factories Early stages of Indus. Rev. in country; cities emerged around factories Improved agricultural production promoted nearby markets/towns Improved agricultural production promoted nearby markets/towns

IMPACT ON WORKING WOMEN Move from agriculture to industry made changes that lessened women’s role Move from agriculture to industry made changes that lessened women’s role Women usually worked fields, gleaned grain, managed milking and cheese production Women usually worked fields, gleaned grain, managed milking and cheese production Mechanization operated by men Agricultural improvement negated women’s role, seen as opponents literature advocated removing women from the work force

In textiles, factory spinning machines were for men, deprived traditional income In textiles, factory spinning machines were for men, deprived traditional income Women turned to cottage industries (knitting/stitching at home) always earned less Women turned to cottage industries (knitting/stitching at home) always earned less For women whose skills thought inferior/paid so poor For women whose skills thought inferior/paid so poor Became prostitutes/criminals: bad reputation Became prostitutes/criminals: bad reputation

Domestic servants, became largest area female employment Domestic servants, became largest area female employment More respectable than cottage, still separate from advanced industries More respectable than cottage, still separate from advanced industries By end of 18 th, work and workplace of men/women became distinctly different By end of 18 th, work and workplace of men/women became distinctly different Shift in female employment produced several long-term results Shift in female employment produced several long-term results Women’s work = home-instead of the workplace Women’s work = home-instead of the workplace No new inventions were in domestic industries No new inventions were in domestic industries women’s work appeared traditional; assumed it was all they could do women’s work appeared traditional; assumed it was all they could do