1. The Commercial Revolution

2. 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

3. What is commerce? What is a revolution?

4. 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

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

6. Features

7. 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

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

10. 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

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

12. 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

13. What company might you want to buy stock?

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

15. Mercantilism

16. 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

17. Significance

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

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

20. Motivated the Age of Exploration
To establish new overseas empires

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

22. Increased Standard of Living