1. Chapter 19 Part 2 Population Explosion Proto-IndustrialismMercantilism

2. Before 1700 Population was limited due to: Famine Famine Disease Disease Warfare Warfare Europe did not reach pre Black Death levels until the mid-16 th Century Europe did not reach pre Black Death levels until the mid-16 th Century

3. Causes of the Population Explosion The Agricultural Revolution = more food available for larger population The Agricultural Revolution = more food available for larger population New Foods (like the potato) became a staple crop for the poor in many areas (like Ireland) New Foods (like the potato) became a staple crop for the poor in many areas (like Ireland) Better roads and canals = improved food transportation Better roads and canals = improved food transportation Better diets (more food and a variety) = stronger immune systems Better diets (more food and a variety) = stronger immune systems

4. Causes of the Population Explosion (continued) After 1720 Bubonic Plague disappeared After 1720 Bubonic Plague disappeared Wars in 18 th Century were less destructive on civilian populations Wars in 18 th Century were less destructive on civilian populations Improved sanitation in towns and cities Improved sanitation in towns and cities BUT…advances in medicine had NO impact at this time BUT…advances in medicine had NO impact at this time

5. Since 1350… 1350-1650…huge growth 1350-1650…huge growth 1650-1750…plateau 1650-1750…plateau 1750 on dramatic increase 1750 on dramatic increase Europe in 1700…120 million Europe in 1700…120 million 1800…190 million 1800…190 million

6. Proto-Industrialism (aka the Cottage Industry or Putting-Out System) Rural industry was an important part of economic growth in the 18 th century Rural industry was an important part of economic growth in the 18 th century Merchant-capitalists in cities would rather deal with cheap labor in the countryside than pay the higher fees to guild members Merchant-capitalists in cities would rather deal with cheap labor in the countryside than pay the higher fees to guild members Rural manufacturing with hand tools began to seriously challenge the urban craft industry Rural manufacturing with hand tools began to seriously challenge the urban craft industry

7. The Cottage Industry Merchant-Capitalist would provide the raw material to a rural family Merchant-Capitalist would provide the raw material to a rural family The Family would produce a finished product and give it to the merchant-capitalist for payment The Family would produce a finished product and give it to the merchant-capitalist for payment Merchants would then sell the product for profit Merchants would then sell the product for profit

8. Wool Cloth Was the single most important product Was the single most important product

9. The Cottage industry was a family activity 4-5 spinners were needed to keep a weaver (the head of the household) busy full time 4-5 spinners were needed to keep a weaver (the head of the household) busy full time A constant quest for more thread and more spinners A constant quest for more thread and more spinners Spinsters (widows or single women) who where hired by families Spinsters (widows or single women) who where hired by families

10. Problems with the cottage industries: Disputes between family producers and merchant- capitalists (weights, quality) Disputes between family producers and merchant- capitalists (weights, quality) Rural labor disorganized and difficult for the merchant-capitalist to control (Holy Monday) Rural labor disorganized and difficult for the merchant-capitalist to control (Holy Monday) Merchant-capitalists were constantly looking for more efficient ways of production leading eventually to the growth of factories in towns and cities Merchant-capitalists were constantly looking for more efficient ways of production leading eventually to the growth of factories in towns and cities

11. Results of the Cottage Industry Thousands of rural poor were able to supplement their incomes Thousands of rural poor were able to supplement their incomes The unregulated nature of production in the countryside led to experimentation and diversity of products The unregulated nature of production in the countryside led to experimentation and diversity of products Textiles (most important), knives, forks, utensils, buttons, gloves, clocks, musical instruments, etc. Textiles (most important), knives, forks, utensils, buttons, gloves, clocks, musical instruments, etc.

12. The Cottage Industry First in England First in England Later to France and Germany Later to France and Germany In 1500 ½ of England’s textiles were produced in the countryside In 1500 ½ of England’s textiles were produced in the countryside By 1700 the percentage was much higher By 1700 the percentage was much higher

13. Proto-industrialism Technology (Before the steam engine) 1733 John Kay: invented the flying shuttle: the weaver only needed one hand to throw the shuttle back and forth between threads 1733 John Kay: invented the flying shuttle: the weaver only needed one hand to throw the shuttle back and forth between threads 1764 James Hargreaves invented the Spinning Jenny: mechanized the spinning wheel 1764 James Hargreaves invented the Spinning Jenny: mechanized the spinning wheel

14. More Proto-industrial technology 1769 Richard Arkwright invented the Water Frame: improved thread spinning 1769 Richard Arkwright invented the Water Frame: improved thread spinning 1780’s Arkwright used steam engines to power looms…the beginning of the Industrial Revolution…some think 1780’s Arkwright used steam engines to power looms…the beginning of the Industrial Revolution…some think 1779 Sam Crompton invented the Spinning Mule: combined features of the spinning Jenny and Water Frame 1779 Sam Crompton invented the Spinning Mule: combined features of the spinning Jenny and Water Frame

15. Mercantilism and the Atlantic economy 18 th Century European maritime expansion 18 th Century European maritime expansion World trade became an integral part of European economy World trade became an integral part of European economy Sugar: the single most important commodity produced in the Atlantic trade Sugar: the single most important commodity produced in the Atlantic trade Also tobacco, cotton, indigo and slave trade Also tobacco, cotton, indigo and slave trade

16. The Atlantic Economy England, France and the Netherlands benefitted the most from the Atlantic trade England, France and the Netherlands benefitted the most from the Atlantic trade But Spain and Portugal were able to revitalize their empires and economies But Spain and Portugal were able to revitalize their empires and economies

17. Mercantilism Goal: Economic self-sufficiency of a nation Goal: Economic self-sufficiency of a nation A favorable balance of trade (more exports than imports) through: Tariffs & other navigation acts A favorable balance of trade (more exports than imports) through: Tariffs & other navigation acts Bullionism: build up large reserves of gold and silver and prevent it from leaving the country Bullionism: build up large reserves of gold and silver and prevent it from leaving the country

18. Mercantilism Colonies for raw materials and markets State-granted monopolies to large companies (East India Companies) Encourage the growth of domestic industries

19. Great Britain 18 th Century: the world’s leading maritime power 1694 The Bank of England: provided capital for economic development 1707 The Act of Union: unified England and Scotland (trade benefits for Scots)

20. English Mercantilism The Government’s economic regulations often served the private interest of individuals and groups as well as the needs of the state (like the Corn Laws)

21. Mercantilism in France Or any authoritarian state Economic policies primarily benefitted the state rather than businessmen and workers

22. The English Navigation Acts Efforts by Parliament to increase military power and private wealth The First 1651 (Cromwell) : to reduce Dutch domination of the Atlantic Trade Required that most goods coming into England be brought on British ships with ¾ British crews Gave British merchants and ship owners a virtual monopoly on trade with the colonies

23. The English Navigation Acts After the Restoration (Charles II) Second 1660 Third 1663 Reiterated the first and required colonies to ship certain goods exclusively to England (sugar, tobacco, cotton) and required the colonies to buy most of their European goods from Brits

24. Triangular Trade Involved: England, American colonies, Caribbean, Africa Different routes Some illegal (both American and English violated navigation acts and made fortunes)

25. The Dutch The Golden Age: first ½ of the 17 th century was the dominant maritime power The middle-class Burghers dominated politics and the economy The government was de-centralized and did not interfere with the economy Much religious toleration

26. The Dutch 1652-1674: 3 Anglo-Dutch Wars Damaged Dutch shipping and Commerce 1664 New Amsterdam was seized by the English and renamed New York By the late 17 th Century the Dutch were falling behind the English in shipping, trade & colonies

27. But The Dutch and the English allied to stop the expansion of Louis XIV in the late 17 th century The Dutch shifted attention to banking rather than trade and managed to survive

28. The Dutch The first to perfect the use of paper money The stock market in Amsterdam was the most important in Europe Created a central bank

29. The Slave Trade The growth of Atlantic trade was largely due to the use of slave labor 10 million Africans were transported to the New World in the 17 th and 18 th centuries ½ of the above were transported on British ships, ¼ on French ships and the rest: Dutch, Portuguese, Danish, American ships

30. The Slave Trade British and French governments gave chartered companies monopolies over slave trade in late 17 th and early 18 th centuries (ie 1672 the Royal African Co.) Forts (factories) were set up on the West African coast to oversee and protect the slave trade

31. The Slave Trade By the 1730’s independent slave traders broke the monopolies Most slaves were captured by rival African tribes and traded to Europeans for cloth, alcohol, weapons Many captured in the African interior died on forced marches to the coast

32. The Slave Trade Between 20-30 % of all slaves brought to the New World along the Middle Passage died on the way Most taken to Brazil or the West Indies to work on sugar plantations 400,000 taken to British North American colonies

33. The slave trade Dwindled by the 1780’s Subsequent growth in slave population was due to natural population growth

34. The Bubbles Both Britain and France faced massive national debts due to the wars of the 17 th and 18 th centuries England: the South Sea Bubble France: the Mississippi Bubble

35. 1720 The South Sea Bubble 1719 The British government gave the South Sea Co. rights to take over the British debt The South Sea Co. had had a monopoly over the slave trade with Latin America a few years earlier and seemed to be responsible and successful The company was expected to make a profit on the interest collected from the government on the debt

36. The South Sea Bubble When the company did not realize profits fast enough for investors, the company converted the debt into stock shares The ensuing speculator frenzy drove prices way up Investors believed prices would continue upward

37. The South Sea Bubble In 1720 the Bubble Burst! Causing the first large-scale financial crash It took years to restore confidence in the British government’s ability to repay its debts

38. The Mississippi Bubble 1720 The Mississippi Co. had been granted a monopoly by the French government on trade with French Louisiana in North America In 1719 the company took over the French national debt in exchange for company shares of stock

39. The Mississippi Bubble Initially, huge increases in stock prices Then dramatic collapse The Mississippi Company was ruined The enormous national debt in France continued to crush the taxpayer and was a key factor in the French Revolution several decades later