Economic Systems Mercantilism Early Capitalists Etc.

Population & Urbanization as Factors Population growthPopulation growth American food cropsAmerican food crops Increased resistance to epidemic diseases after the mid- seventeenth centuryIncreased resistance to epidemic diseases after the mid- seventeenth century European population: 81 million, 1500 < 180 million, 1800European population: 81 million, 1500 < 180 million, 1800

Population & Urbanization as Factors UrbanizationUrbanization Rapid growth of major citiesRapid growth of major cities Paris: 130,000 in 1550 < 500,000 in 1650Paris: 130,000 in 1550 < 500,000 in 1650 Cities: administrative and commercial centersCities: administrative and commercial centers

Why build an empire? New or more trade goodsNew or more trade goods FurFur CoffeeCoffee SugarSugar TeaTea Etc.Etc.

Mercantilism! What’s that?What’s that? An economic philosophy of the 16th and 17th centuries that international commerce should primarily serve to increase a country's financial wealth, especially of gold and foreign currency.An economic philosophy of the 16th and 17th centuries that international commerce should primarily serve to increase a country's financial wealth, especially of gold and foreign currency. Exports viewed as desirable and imports as undesirable unless they lead to even greater exportsExports viewed as desirable and imports as undesirable unless they lead to even greater exports

Settler colonies in North America Foundation of colonies on east coast, exploration of west coastFoundation of colonies on east coast, exploration of west coast France and England came seeking fur, fish, trade routes in the early seventeenth centuryFrance and England came seeking fur, fish, trade routes in the early seventeenth century NW Passage, anyone?NW Passage, anyone? Settlements suffered isolation & food shortagesSettlements suffered isolation & food shortages

Settler colonies in North America Colonial government different from Iberian coloniesColonial government different from Iberian colonies North American colonies controlled by private investors with little royal backing North American colonies controlled by private investors with little royal backing Royal authority and royal governors, but also institutions of self- governmentRoyal authority and royal governors, but also institutions of self- government Iberian Colonies:Iberian Colonies: Royal control: ViceroysRoyal control: Viceroys You remember what those were, right?You remember what those were, right?

Settler colonies in North America Relations with indigenous peoplesRelations with indigenous peoples Settlers' farms interrupted the migrations of indigenous peoplesSettlers' farms interrupted the migrations of indigenous peoples Settlers seized lands, then justified with treatiesSettlers seized lands, then justified with treaties Natives retaliated with raids on farms and villagesNatives retaliated with raids on farms and villages Attacks on European communities brought reprisals from settlersAttacks on European communities brought reprisals from settlers Between 1500 and 1800, native population of North America dropped 90 percentBetween 1500 and 1800, native population of North America dropped 90 percent

Early capitalism & protoindustrialization The nature of capitalismThe nature of capitalism Private parties sought to take advantage of free market conditionsPrivate parties sought to take advantage of free market conditions Economic decisions by private parties, not by governments or nobilityEconomic decisions by private parties, not by governments or nobility Forces of supply and demand determined priceForces of supply and demand determined price Supply and demandSupply and demand Merchants built efficient transportation and communication networksMerchants built efficient transportation and communication networks New institutions and services: banks, insurance, stock exchangesNew institutions and services: banks, insurance, stock exchanges

Early capitalism & protoindustrialization Joint-stock companies like EEIC and VOC organized commerce on a new scaleJoint-stock companies like EEIC and VOC organized commerce on a new scale Capitalism actively supported by governments, especially in England and NetherlandsCapitalism actively supported by governments, especially in England and Netherlands Protected rights of private property, upheld contracts, settled disputesProtected rights of private property, upheld contracts, settled disputes Chartered joint-stock companies and authorized these to explore, conquer, and colonize distant landsChartered joint-stock companies and authorized these to explore, conquer, and colonize distant lands

Early capitalism & protoindustrialization The putting-out system, or protoindustrialization, of seventeenth and eighteenth centuriesThe putting-out system, or protoindustrialization, of seventeenth and eighteenth centuries Entrepreneurs bypassed guilds, moved production to countrysideEntrepreneurs bypassed guilds, moved production to countryside Rural labor cheapRural labor cheap Cloth production highly profitableCloth production highly profitable

Social change in early modern Europe Early capitalism altered rural society:Early capitalism altered rural society: improved material standardsimproved material standards increased financial independence of rural workersincreased financial independence of rural workers Profits and ethicsProfits and ethics Medieval theologians considered profit making to be selfish and sinfulMedieval theologians considered profit making to be selfish and sinful Adam Smith: society would prosper as individuals pursued their own interests Adam Smith: society would prosper as individuals pursued their own interests Capitalism generated deep social strains also: bandits, muggers, witch-huntingCapitalism generated deep social strains also: bandits, muggers, witch-hunting

Social change in early modern Europe The nuclear family strengthened by capitalismThe nuclear family strengthened by capitalism More independent economically, socially, and emotionallyMore independent economically, socially, and emotionally Love between men & women, parents & children became more importantLove between men & women, parents & children became more important Shift is reflected in literature (Jane Austen ring a bell?)Shift is reflected in literature (Jane Austen ring a bell?)

So what? By 1750, a whole new economic worldBy 1750, a whole new economic world New alliancesNew alliances World beginning to be divided upon current economic boundariesWorld beginning to be divided upon current economic boundaries