The Commercial Revolution 1500-1700

Causes Population Growth “Price Revolution” 1500, 70 Million 1600, 90 Million “Price Revolution” Increase food prices, increased volume of money, and influx of gold and silver States wanted to increase economic power Rise in Capitalism (laissez-faire)

Banking The Fuggers in Germany and the Medicis in Italy were among the leading bankers in Europe Antwerp in Flanders became the banking and commercial centers of Europe in 16th century Amsterdam became leader in 17th century after Dutch Revolt against Spain

Hanseatic League Evolved within the German states in the Middle ages that eventually controlled trade in the much of northern Europe well into the 16th century The league was a mercantile association of numerous cities and towns

Chartered Companies State provided monopolies in certain areas British East India Company Dutch East India Company Chartered companies used large fleets of ships and military power

Joint Stock Companies Investors pooled resources for common purpose Early example of capitalism

Stock Market Investors financed a company by purchasing shares of stock As the value of the company grew so did the value of the stock, making investors profit

Enclosures Wealthy land owners enclosed their land to improve sheep herding Led to great supply of wool for production of textiles

New Industries Cloth production Mining Printing Book Trade Shipbuilding Arms (Muskets and Cannons)

New Consumer Goods Sugar Rice Tea Led to enormous slave trade in Atlantic Rice Tea

Mercantilism Nations looked to become self-sufficent Created a favorable balance of trade Exported more then imported Gold and Silver “Bullionism” Acquire as much gold as possible

Significance Change in society Completely rural and isolated more developed towns Brought forth age of exploration “Price Revolution” Large Population  High Demand  Increasing Prices Bourgeoisie grew in political and economical significance Increased standard of living (upper/middle class)