World History Nov. 28th / 29th TODAY: Discuss the Impact of the Commercial Revolution Notes on the Commercial Revolution Review for Connecting Hemispheres Exam EXAM NEXT CLASS
COMMERCIAL REVOLUTION (16th century: approx. 1500-1700) COMMERCIAL REVOLUTION
What is the Commercial Revolution? “The shift from a town-centered economy to a nation-centered economy.” The emergence of commercial capitalism
Three-Field System Before After Fallow means left unfarmed Fallow Farm
The Three-Field System Could farmers yield more crops using half of their land or two-thirds of their land?
The Commercial Revolution Causes population growth: 60 million in 1400; 75 million in 1500; 100 million in 1600 “price revolution”: (long slow upward trend); increased food prices, increased volume of money, influx of gold & silver from the New World. rise of capitalism (laissez-faire):entrepreneurs; bourgeoisie at the forefront Effects Imports of silver from the New World and population growth led to inflation – effected the poor and peasants the most. Landowners, merchants, artisans grow rich – reinvest money in exploration ventures. Population growth and enclosure pushed people of the land into cities Establishment of poor relief
The Guild A group of individuals working together to improve economic and social conditions for its members Blacksmiths Wine makers Bakers Artisans
How to become a Master
Mercantilism, Purpose of Colonies MERCANTILISM: NATIONS SOUGHT SELF-SUFFICIENT ECONOMY; “BULLIONISM”
Mercantilism in History Between the 15th and the 18th centuries in Europe, powerful states were created and were dedicated to the pursuit of economic power and wealth. Governments organized their then-limited capabilities to increase the wealth of the country. Mercantilist governments promoted… exports over imports industrialization over agriculture the protection of domestic production against competition from imports the intervention in trade to promote domestic employment
Mercantilism Leads To Fleets Sea power was necessary to control foreign markets. A powerful merchant fleet would obviate the necessity of using the ships of another nation and becoming dependent on foreign assistance. In addition, a fleet in being could add to a nation's prestige and military power.
Fleets Lead to: Competition between nations Navigation and other Trade Acts Avoidance of tariffs Need for large labor force Slave Trade Conflict on the seas Larger Ships more maneuverable ships
England vs. Spain England was late in joining the competition for Asian trade, but England also reached out. In the New World England and Spain were bound to come in conflict. England had participated little in the process of exploration yet insisted that its occupation provided a legitimate claim to title. Of course, Spain claimed that discovery provided the claim to title. The Spanish not only desired to monopolize the trade of their colonies, but the also wished to prevent the English from establishing a foothold which would constitute a base for penetration of Spanish territory. Generally speaking, the English disliked the Spanish.
New Colonial Rivals (slave trade)
Trans-Atlantic Slave Trade
“Coffin” Position Below Deck
Slave Ship
Banking First major banking firms being in northern Italy (Medici) Northern Europe: Fugger family of Augsburg Jakob Fugger (1459-1525) Financed Charles V.
New Kinds of Business Banking expanded to Antwerp in 16th c., Amsterdam in 17th c. chartered companies: state provided monopolies in certain area (British East India Company, Dutch East India Company), governments profited from ventures. joint-stock companies: investors pooled resources for common purpose (forerunner of modern corporation), reduced risk.
More Results of the Revolution stock markets: e.g., Bourse in Germany “Putting-out” Industry –cottage industries grow. new industries: cloth production, mining, printing, book trade, shipbuilding, cannons & muskets consumer goods: rice, sugar, tea, spices Results of All of This: Rise of European Influence Abroad – European Empires - French/British/ Spanish