Economic Development of the Dutch

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Presentation transcript:

Economic Development of the Dutch

Dutch lead Development of Capitalism Capital invested in business ventures Goal: pay costs and make profit to reinvest Chance for profit- economy boomed 1660’s – herring industry Money not spent on luxury (led strict lifestyle)

Dutch Trade Bought surplus grain in Poland Sold in S. Europe after poor harvest Scandinavian lumber sold in Europe 10,000 Dutch trading ships by 1600 Shipped for other countries Trade not war ships

The Golden age of the dutch republic Discuss Dutch Republic Videos & questions Start on ….if time HW: Begin Chapt. 17 – outline – “Lords and Peasants of Eastern Europe” (p. 565 – 569); “The Rise of Austria” (p. 569 – 573)

The Spanish Netherlands: Union of Utrecht, 1579 The United Provinces still recognized Spanish rule, but, in 1581, they declared their independence.

United Province of Netherlands Republic / confederation (weak union of strong provinces) Governors elected for each province whose power depended on merchants, landowners States General- delegates from 7 provinces (Stadholder) responsible for defense and good order. Stadholders wanted to avoid centralization but as a whole the country had the largest navy and was the wealthiest of any country in Europe at that time. Religious tolerance

The Dutch Federation REGENTS STADHOLDER STATES GENERAL - provincial level group of wealthy merchants - held virtually all the power - strong advocates of local independence STADHOLDER - States General representative from each province - responsible for defense and order STATES GENERAL - federal assembly - foreign affairs (war) - all issues had to be referred to the local Estates

Local Economy Fishing industry was cornerstone of local Dutch economy – Herring The profits helped to building their shipping industry and their merchant marine They began shipping (importing) lumber, grapes, grain and (exporting) diamonds, linen, Delftware but made more money by the actually transport

Dutch East Indies Co. 1602 Spices most prized items from Southeast Asia Competitor = Portugal Firm amassed fleet superior to Portugal Profit reinvested in more trading ventures Any Dutch citizen could by shares Other nations soon followed (France, Britain) Commercial Revolution-organized trade Beginning of Capitalism

Delft

Delft

Complete the questions that correspond with each video. https://www.youtube.com/watch?v=40UwxKSMMbs Stadtholders (start at 2:47) https://www.youtube.com/watch?v=zPIhMJGWiM8 Dutch East India Company