The Commercial Revolution 1500-1700

Money has never made man happy, nor will it, there is nothing in its nature to produce happiness. The more of it one has the more one wants. Benjamin Franklin Giving money and power to government is like giving whiskey and car keys to teenage boys. P. J. O'Rourke Money won't create success, the freedom to make it will. Nelson Mandela The rich are always going to say that, you know, just give us more money and we'll go out and spend more and then it will all trickle down to the rest of you. But that has not worked the last 10 years, and I hope the American public is catching on. Warren Buffett

What is commerce? What is a revolution?

Causes Renaissance commercial growth Population Growth More Consumers Price Revolution: Upward Trend in Prices Why would prices go up? Higher food prices, more $, influx of gold & silver (exploration) Higher prices -> More Goods

States & Empires wanted to increase their economic power Rise of Capitalism Entrepreneurs who invested their $ Middle Class (bourgeoisie) led the way

Features

Banking Leaders in Europe Fuggers in Germany Medicis in Italy To fund economic activities/business Financial & Commerce Centers of Europe 16th Century: Antwerp in Belgium 17th Century: Amsterdam

Hanseatic League Association of German states that controlled trade in Northern Europe

Chartered Companies States allowed for monopolies in certain areas Some would become very powerful w/ large fleets of ships & military power Examples British East India Company Dutch East India Company

Joint-Stock Companies Investors combined their resources in the hopes of receiving more in return

Stock Markets Emerged Investors buy stock (partial ownership) in a company Hoped the value of the company increases -> their return on their investment The Bourse in Antwerp

What company might you want to buy stock?

New Industries Emerged Examples: cloth, mining, shipbuilding, etc. New Consumer goods

Mercantilism

Mercantilism (17th Century) Limited Amount of Wealth in World Goal: Nations seek a self-sufficient economy Strategy: Create a favorable balance of trade How? “Bullionism”: Acquire as much gold & silver as possible Colonies were to serve the mother country

Significance

Transition From Rural & Isolated Europe To a more developed Europe w/ emerging towns

Emergence of more powerful nation states Fueled by economic wealth Why doesn’t Italy send out many explorers?

Motivated the Age of Exploration To establish new overseas empires

Emerging Middle Class What often accompanies Economic Power??? Nobility Income Stayed Fixed Bourgeoisie Income Grew What often accompanies Economic Power???

Increased Standard of Living