The Rise of the Atlantic Economy and The Golden Age of Spain

Eastern Europe 1550 2

Expansion of Trade Due to the crises of the 17th Century the Mediterranean decline in production Production shifted from the Mediterranean to Western Europe England, France, The United Dutch Provinces and Spain established colonies in North America giving them new items to trade To help pay for these new goods credit was provided Bills of Exchange began to be used which increased money through the interest charged on the bills Also Joint-Stock companies will be used for the first time in order to pay for large colonial ventures

Increased Agriculture In the 16th century more forests were cleared bringing more land under cultivation Serfdom was increased in Eastern Europe and in order to sell excess grain to the West

The Global Economy This expansion of trade and agriculture led to a globally linked economy However there was great risk in this economy and disease was passed back and forth between the old world and new Increased Spanish imports of specie lead to massive inflation Also to finance wars monarchs would Debase (lower the amount of gold in) their currency

Absolute Monarchs Most monarchs reigning in this time period ruled through absolutism, or complete control in the hands of one ruler Monarchs legitimized their rule by invoking the idea of divine right, that God gave them the power to rule

The Families of Europe Hapsburgs – Holy Roman Empire, Spain, Austria Bourbons – France Tudors – England These families competed over territory and power

The Hapsburgs The Hapsburgs were one of the most powerful ruling families Charles the V, ruler of the Holy Roman Empire, split his empire into two parts for his sons Ferdinand – Central Europe, Austria Philip II – Spain, the Netherlands, southern Italy, and Spain’s overseas empires

Empire of Charles V 9

The Habsburg Dynasty 10

Creation of Spain Spain was created when King Ferdinand II of Aragon married Queen Isabella of Castile in 1469 This leads to the two largest powers on the Iberian peninsula to form the first nation state This had many advantages leading to 1. Castilian becoming Spanish 2. A crusade forcing the Moors out of Spain in 1492

Kingdoms of Spain: 1492 12

Ferdinand and Isabella The dual monarchs created a functioning bureaucracy Stripped many nobles of their titles Started the inquisition Expanded colonial holdings in America

The Madonna of the Monarchs Ferdinand & Isabella of Spain The Madonna of the Monarchs 14

Spanish Economy Due to lack of arable land Spain's economy was based on the wool trade and taxing its peasantry Due to the heavy tax burden that was a revolt against Charles I (V) in 1520 When Charles abdicated he divided his kingdom between the Spanish holdings and the Austrian holdings

Spain and Phillip II Spain was the leading power of western Europe at the start of the 1500s Phillip II Saw himself as the defender of Catholicism Worked to increase Hapsburg (his family) power Held power through elaborate court rituals meant to impress and intimidate

The Empire of Philip II 17

Phillip II and Religion Phillip was concerned over the religious loyalty of different groups in Spain Protestants – not Catholic Marranos – Jewish converts to Christianity Moriscos – Muslim converts to Christianity He supported the Inquisition in Spain – which enforced Catholicism throughout Spain through Torture Execution

Spain and the Turks Phillip felt it was his job to expel the Turks and carried out a naval war against Suleiman the Magnificent from 1559-1577 The Turks attempted to capture Granada but were defeated at the battle of Lepanto

Central Europe in 1600 20

The Growth of the Ottoman Empire 21

Spain and the Netherlands During this time, Spain controlled the Netherlands Three main factors led to the Netherlands fighting for independence from Spain Heavy taxation of the Netherlands by Spain to fund its empire Protestantism in the Netherlands - As a Catholic king, Philip of Spain felt it was his duty to protect Catholicism and destroy Protestantism Spain began to centralize its power and bring the Netherlands even more under their control, leading to resistance

Spain and the Netherlands Phillip tried to bring the Netherlands more under his control by sending courts to hunt down people who didn’t obey him or Catholicism Dutch Protestant nobles rebelled in 1560's Spain Appointed the Duke of Alba to put down the revolt Alba used a heavy hand executing leaders and imposing taxes and destroying self government in the Netherlands Alba's terror prompted a full Dutch revolt led by William of Orange This prompted Alba to execute thousands in retaliation

More Dutch The Dutch were successful on the Sea but the Spanish were superior on land By 1577 the Spanish army had dwindled from desertion, poor management, and mutinies During this war for independence, the English, the French, and Suleiman of the Ottoman empire supported the Dutch against the Spanish In 1588 the Spanish armada sailed to invade England and remove them from the war, the result was one of the greatest disasters in history The Dutch win independence from Spain, in the peace of Westphalia in 1648 This was the beginning of the decline of Spain

The Spanish Armada The English became increasingly troublesome for Phillip English had supported the Dutch in their revolution The English were increasingly challenging the Spanish for naval power 1586 – Phillip decides to invade England to overthrow Elizabeth; devotes all resources to preparing for this invasion for the next two years Launches 130 ship armada (large fleet of ships), with 33,000 soldiers, which finds its way into the English Channel

Spain vs. England – Advantage? Spanish armada Larger ships Heavier guns Marines and soldiers trained in close combat – board opposing ships and take them over English ships Faster, more maneuverable Longer range guns Gunners better trained Operating closer to home

Battle of Gravelines Spanish crescent formation was broken up by the English, using fireships Spanish never got close to the English – had to for their tactics to work Spanish gunners hadn’t been trained to reload – fired once, then manned the top-decks to board enemy ships Spanish armada can’t defeat English, fleet is gradually destroyed by lack of water, storms, and disease – only half the ships and around 10,000 men survive

Spanish Decline Over time, the Spanish empire declined from its glory Economy Borrowed large amounts of money to support wars, such as against the Dutch Gold and silver from the New World first made the country rich, then inflated the currency Industry and agriculture declined (some say because they were rich, they became poor)

Spanish Decline, continued The Spanish and Portuguese also expelled Muslims and Jews from the country Many Muslims and Jews were artisans, merchants, bankers, etc., so they took their knowledge, skills, and money with them – “brain drain.” The new leadership after Philip was generally incompetent in running the empire effectively Agricultural output fell The colonies became a burden with huge administrative costs and few economic opportunities because of poor management

An Empire Spread to Thin The Spanish Empire was spread from Italy, to Iberia, to the Netherlands, to South America, to the Philippines Spanish entry in the 30 years war also cost a great deal of lives and treasure, further weakening Spain Revolts occurred in Catalan and Portugal over increased taxation In response the crown tried to centralize Spain even further under Philip IV By the mid 1600's Spain had lost its Italian possessions to France

Summary So, in the golden age of Spain Spain was ruled by the Hapsburg empire, a ruling family that ruled throughout Europe Spain tried to exert influence and control over other countries, such as the Netherlands and England Many factors, such as loss of the Netherlands, the defeat by England, the decline of the Spanish economy, and poor leadership following Philip the II led to Spain’s decline